How infrastructure will impact your property’s capital growth

There is more to a property’s value than the quality of the home. That is because the more desirable a property is the higher potential rent you can charge. What affects this is partly the fit and finish, but also the location your property is in. A part of what can make a location extremely appealing is the amount of infrastructure investment it is receiving.

These pieces of infrastructure can include things like schools, hospitals, roads, parks, public transport, shopping centres, and more. This puts the focus on an area, increases the money invested and jobs available in the area, then by extension, increases the value placed in living in an area. All of this is great for property owners who then pocket this increase in value through rent and capital growth.

Currently, Australia is skyrocketing its number of infrastructure projects as our country grows at unprecedented rates. Even with COVID having an effect on this growth, the investment still remains, and so too do the benefits.

What important infrastructure is happening in Brisbane?

As Brisbane locals, our focus is on the massive changes our city has gone under and will go under in the future. There is a wide variety of new infrastructure projects being built across the city that will have a major effect on the desirability of certain suburbs. Starting with the State Government, we have the ginormous $5.4 billion Cross River Rail. Along with this comes 4 brand new stations in the heart of the city, revamped stations along the Beenleigh line, and more. Add to this the new entertainment precinct above Roma Street Station, new station redevelopment at Woolloongabba, and increased frequency of trains, and Cross River Rail is transformative.

From the Brisbane City Council, we have a big list of new infrastructure projects, with the new Brisbane Metro increasing frequency, comfort, and improving congestion on the busways by transforming it into a high capacity metro. There are also new green bridges, including the Kangaroo Point green bridge, improving connectivity across the city for pedestrians and cyclists. Then there is the northwest transport corridor, a partnership with the federal government, delivering new roads and public transport to northwest Brisbane. These changes will have a major effect on how we get around the city.

Away from transport infrastructure, we have Victoria Park being built by the council on the former Victoria Park golf course. This project is massive in scale and involves creating Brisbane’s equivalent of Grand Central Park. From private developers, we have the new Queens Warf integrated casino and lifestyle precinct set to dominate our skyline and transform a once empty and derelict part of the city. On the opposite side, we have Dexus transforming and updating Eagle Street Pier to breathe new life in the area last developed in the ’80s. Add to all of this with new hospitals, shopping centres, neighbourhood high street renewals, and more, Brisbane has a lot of new infrastructure to look forward to.

How to find out what is planned in the areas you are considering?

Knowing what is up and coming in the area can help make the difficult decision of where to buy your property an easier one. The easiest way to find out what is being built in your area is to head over to the Brisbane Development Map. This map is a free resource put together by a community of development enthusiasts. They do all the research, watch development applications and more so you can easily find out what is going on in a visual way.

This map has a couple of important things to note. Firstly, the key is important to know. Red is for proposed projects, orange for withdrawn or refused, green is for approved projects, blue for those under construction, and purple for those with a greater master plan. The other thing you should note is that there are some projects which may not appear on here. Some of these include shopping centre extensions, certain suburban neighbourhood improvements, and more. For details on these, you may need to go to the developer’s website or the Brisbane City Council website.

Why infrastructure is important

Infrastructure development is a great measure of confidence in a location. If it is believed to be a popular area, or soon will be, there may be a lot of interest in developing a location. This can be an indicator for future demand.

The big benefit of new infrastructure, however, is its impact on property prices. Often a new train line, shopping centre, or motorway nearby can drive property prices up faster than standard capital growth predictions. Increased connectivity and amenity makes your property appear more desirable.

It goes beyond this though. When there is more construction in an area there are more jobs. So, this brings with it demand for housing as those who prefer to live close to work move into the area. Ultimately, this could enable you to increase the rent you charge on your property.

COVID-19 presents some opportunities

While COVID has had an effect on our lives, where we work, how we commute, and more, it has brought with it a lot of Government investment into our cities. With this has also come private investment as projects are being fast tracked to generate an increase in jobs. This investment has helped generate jobs, raise incomes, and provide greater wealth.

COVID has also presented cities with an opportunity to change themselves in order to increase quality of life within them. As the pandemic exposed the quality of life many people currently live in, it has brought with it a push for change. Now there is far more pressure on making suburbs greener, with higher mobility, easy access to local areas, and greater walkability. Cities have been forced to change their CBDs from spaces we have to go into spaces we want to be in as they attempt to encourage people back into them.

Conclusion

High levels of investment into a city’s infrastructure is great for increasing the value of properties close by to these improvements. The end result is often a more desirable neighbourhood which people love to be in and spend time exploring. Having this desirability in the area near your investment property is a great way to improve its own desirability, and the rent you can charge.

For further investment property advice talk to Link Living.