Infrastructure spend great news as Australian real estate springs into action
Media release - 13th September, 2013
Commitment to roads a boost to housing values
- Auction clearance rates averaging 75% around Australia
- The Federal Coalition’s proposed $20 billion investment in major roads is set to underpin long-term real estate values around Australia
Spring has definitely sprung with leading real estate group Raine & Horne reporting that the Australian property market is experiencing its best September in many years.
“This is surprising as federal election campaigns tend to slow real estate activity,” says Angus Raine, Executive Chairman and CEO of Raine & Horne.
“However with clearance rates averaging around 75% in our major population centres, and as much as 85% in auction hotspots such as Sydney and Melbourne, we haven’t seen a Spring market like this since the global financial crisis half a decade ago.”
Mr Raine also believes the Federal Coalition’s campaign announcement to sink over $20 billion into infrastructure projects will underpin property values long-term.
“I’m particularly heartened by the Federal Coalition’s commitment to improving our roads, and projects such as Queensland’s Bruce Highway, the Westconnex in Sydney and the Perth Gateway will prove a significant boost for long-term housing values,” said Mr Raine.
The impact of this investment is expected to be significant, with the bipartisan North Queensland Road Alliance estimating that the Bruce Highway contributes $11.5 billion per annum to the Queensland economy and supports 60,000 jobs in North Queensland.*
“Infrastructure improvements that reduce commuting times between – and within – our major population centres will be great news for economic growth, jobs and real estate values.”
Mr Raine cites the precedent of home values in suburbs such as Glenwood and Bella Vista in Sydney’s north west, which jumped by around 10% between the February 2002 announcement of the major orbital road, the Westlink M7, and the start of its construction in July 2003.
Similarly, Emmanuel Fardouly, Principal of Raine & Horne Bella Vista/Glenwood, maintains the construction of the $8.3 billion North West Rail Link is already creating a price surge similar to the announcement of the Westlink M7 over a decade ago.
“The North West Rail Link is still six years from completion, yet it’s already having an impact, with property values up by 7% since December 2012,” says Mr Fardouly.
“I’d expect growth consistent with this, and potentially more, as we move closer to the opening of the North West Rail Link in 2019.”
The Coalition’s infrastructure platform includes:
- $6.7 billion to fix Queensland's Bruce Highway;
- $1.5 billion to ensure the Westconnex project gets underway in Sydney;
- $405 million for the Sydney F3 to M2 link;
- $1.5 billion to commence construction for the East-West Link in Melbourne;
- $1 billion to support the Gateway Motorway upgrade in Brisbane;
- $615 million to build the Swan Valley Bypass on the Perth to Darwin Highway;
- $686 million to build the Perth Gateway project;
- $500 million to support the upgrade of Adelaide's North-South Road Corridor;
- $400 million to upgrade the Midland Highway in Tasmania; and
- $5.6 billion to complete the duplication of the Pacific Highway from Newcastle to the Queensland border.
Source: Media release: Final update on Federal Coalition Election Policy Commitments, 5 September, 2013
For further media information contact:
Angus Raine, CEO, Raine & Horne, 0409 920 697
Andrew Harrington, National Marketing & Communications Coordinator on 02 9258 5400