Massive infrastructure investments are reshaping Australia’s cities and regions, driving changes in transportation, energy, and urban development. With $120 billion in federal funding committed over the next decade, large-scale projects are reshaping the way Australians live, work, and invest in real estate. But what does this mean for property values and investment opportunities?
The Infrastructure Investment Boom
Australia is making a massive investment in infrastructure, with $16.5 billion allocated in the 2024–25 Budget alone. The East Coast states are set to benefit the most, with funding directed toward developments that will shape the future of transport and connectivity across the country. Beyond this year’s budget, some of the major projects shaping Australia’s infrastructure landscape include:
- Sydney Metro ($65 billion): Australia’s largest public transport project, creating a fully automated rail system across Sydney.
- Inland Rail Freight Corridor ($31.4 billion): A 1,700-kilometre freight rail linking Melbourne and Brisbane.
- Australasia-Asia Power Link ($30 billion): A renewable energy project exporting solar power from the Northern Territory to Singapore.
- North East Link ($26.2 billion): A 10-kilometre expressway connecting Melbourne’s major freeways.
- Torrens to Darlington ($15.4 billion): A crucial road corridor upgrade in Adelaide.
- Bruce Highway Upgrades ($14.4 billion): Improving the 1,673-kilometre highway from Brisbane to Cairns.
- METRONET ($12.4 billion): Perth’s largest rail investment, adding 72 kilometres of new rail and 23 stations.
Construction Surge and Economic Benefits
Transport-related engineering construction reached a record $51 billion (inflation-adjusted) in 2023–24, representing over half of all infrastructure activity nationwide. Beyond expanding transport networks, this surge is contributing to employment growth and economic activity. The transport sector has created thousands of new jobs in the 12 months to August 2024, as shown below.
How Infrastructure Impacts Property Values
Research shows that infrastructure upgrades, especially transportation projects, can drive land or property value growth due to improved accessibility and shorter commute times. A government study found that transport projects impact property price at varying levels:
More research showed that proximity to public transport can lead to higher property value growth.
- Houses within 30 metres of new stations can see price increases of up to 32%.
- Apartments within 400 metres of major transport hubs can increase prices by up to 45%.
Final Thoughts: Opportunities in Australia’s Infrastructure Boom
For investors:
- Areas undergoing major infrastructure upgrades, especially transport corridors and new rail lines, present key opportunities for capital growth and increased rental demand.
- Regional areas with improved connectivity could see stronger investment appeal.
For homebuyers:
- Infrastructure developments often lead to better local amenities and improved convenience.
Australia’s infrastructure boom is reshaping the property landscape, with new transport networks transforming urban centres and improved connections revitalising regional areas. These changes are influencing property investment and development strategies across the country.
Key Takeaways:
- The Federal Government has committed $120 billion to infrastructure projects over the next decade.
- Transport infrastructure projects hit a record $51 billion in 2023-24.
- Major infrastructure projects, including Sydney Metro ($65 billion) and Inland Rail ($31.4 billion), are reshaping regional and urban landscapes.
- Properties near transport hubs can experience land or property value uplift.
- Infrastructure growth fuels employment and economic development across Australia.
