When it comes to elevating the profile of a geographical or council area, as well as the value of real estate of other assets in that region, infrastructure and community development plays a key part. With the recent infrastructure audit and the federal budget providing strong guidance as the to future of Australia’s development, it could be time for investors and home owners to start taking stock of changes in their local communities.
Our capital cities will change
Currently, investors are betting that real estate in Melbourne and Sydney will return the best gain over the long term, which has given rise to the massive swell in prices in these two cities over the past few years, especially compared to the rest of the country.
However, the Australian Infrastructure Audit Report, released by Mark Birrell, chairman of Infrastructure Australia, reveals that the changing nature of our country’s population and resources means there is change afoot. Many of our cities will develop over the coming years, necessitating a vast influx of capital expenditure and infrastructure development.
For example, the report finds that on average, demand across the capital cities for public transport will double in the next 20 years. This means new routes and better options will have to be made available to citizens all over Australia. While the public transport grid expands, new subdivisions and outlying areas will have greater access to CBDs and industrial parks, allowing our work force to become more mobile. As these areas are connected to neighbouring towns and amenities through public transport and road and bridge development, local real estate will become more desirable and accessible.
For the average Australian investor with a long-term plan, these “out of touch” areas could be the next property hotspots, yielding massive returns for early adopters.
Our regions will expand
There’s no doubt about it, if you’re standing still you’re moving backwards. With the whole of Australia focused on growing the strength of our economy and fostering local jobs and innovation, it’s no wonder even far-flung regions are set to prosper.
The report highlights that areas such as Pilbara and Gladstone could be places to keep an eye on, with their current $44billion contribution to the national economy set to expand to $110billion by 2031. With regions delivering a high amount of economic output, the demand for infrastructure will only grow, as will the need for developable land and affordable homes for sale.
“Australia has handled growth and demands like this before and I am optimistic that we can do so again. The challenge is managing our success so that infrastructure delivers the economic benefits and living standards Australians expect,” said Mr Birrell in a 22 May statement.
Our networks will improve
Part of delivering a brighter future for Australia is paying the electricity bill. Thankfully, this is getting easier and easier to do as reforms in the telecommunications and energy sectors have delivered cheaper and better services to consumers, as highlighted by Mr Birrell.
However, it’s not only these networks that need to develop in order to keep the country thriving. We rely on many other services without even realising it. For example, the federal budget highlights northern cattle supply chains as an area for improvement, as well as the Regional Aviation Access Programme. With development of these kinds of services, amongst others, we are all set to benefit in the long run.
Whether you’re planning a portfolio of rental properties or interested in rural real estate for a business venture, there are all sorts of opportunities available to the Australian entrepreneur – you just need to keep an eye out.
