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As the government embarks on record levels of infrastructure spending, now is the time to identify long-term investment opportunities in the property market.
Australia is a large country with significant urban sprawl in our metropolitan cities. Our population is growing rapidly. Australians depend on key infrastructure like roads, rail and other transport links to remain mobile, while access to utilities and health services is vital.
Local infrastructure is a crucial factor when choosing where to live. It’s no different when it comes to property investing either.
Construction spending on community projects helps to drive house price growth. Locations that have good access to infrastructure tend to outperform those that don’t in terms of property price growth. That’s because there is high demand from both owners and tenants to live in these areas.
When looking for an investment property, pay close attention to both existing and planned infrastructure.
Two key property markets that are likely to benefit significantly over the next decade from massive infrastructure spending are South East Queensland and South Western Sydney. Let’s take a look at both markets in turn.
The South East Queensland region includes Brisbane, the Gold and Sunshine Coasts, Ipswich and Toowoomba. It has one of the fastest growing populations in Australia, with forecast growth of 20% (an increase of more than 1 million people) by 2036.
Infrastructure spending in South East Queensland was already on the increase before the 2021 announcement of Brisbane as the host city for the 2032 Olympics. That announcement has initiated a raft of infrastructure projects for the region over the next decade. These projects are being funded by both the Federal and State governments.
Key current and planned South East Queensland infrastructure projects include:
All of this infrastructure spending is likely to make key locations in South East Queensland a lucrative market for house price growth over the next decade.
An area that lacks accessibility today could become the next growth corridor tomorrow.
South Western Sydney includes major population growth areas in Bankstown, Liverpool and the Macarthur region such as Campbelltown and Camden.
This region is set to benefit from Australia’s largest infrastructure project currently underway: the development of the new Western Sydney International Airport and surrounding Aerotropolis. The Aerotropolis includes the development of the Sydney Metro West — a new underground rail network connecting Parramatta and the Sydney CBD.
Both the Western Sydney International Airport and its accompanying Sydney Metro West rail line project are expected to be operational in 2026. The rapidly growing south Western Sydney region is expected to become Australia’s third-largest economy by 2036.
Other key current and planned South Western Sydney infrastructure projects include:
You can find out more about South Western Sydney infrastructure developments here.
Suburbs like Austral and Oran Park currently have affordable house and land packages. They remain poised for long-term property price growth on the back of this massive infrastructure spending.
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