Federal Budget 2022: Benefits of Billion-Dollar Huge Infrastructure Projects
- Posted By Ndl 1 Realty
With the looming Federal Election, billions of dollars worth of big-budget infrastructure projects have been approved. This includes a rail line linking Brisbane and the Sunshine Coast, a new university campus, an important stretch of motorway, and so much more with the potential to reshape communities by developing connectivity, amenity, and desirability.
Treasurer Josh Frydenberg confirmed these projects with an additional $17.9 billion of funding over 10 years, fetching a total pipeline of infrastructure projects worth $120 billion.
"Our record $120 billion infrastructure pipeline has already completed over 35,000 projects across the country since we came to government," Mr Frydenberg said.
"[This] budget includes new commitments to road and rail projects – Brisbane to Sunshine Coast faster rail, Sydney to Newcastle faster rail, the METRONET project in Western Australia, the North-South Corridor in South Australia... delivering our record infrastructure pipeline is a vital part of our plan for a stronger future."
This well-targeted infrastructure spending is expected to bring major benefits for communities, and eventually to their housing markets according to PropTrack economist Angus Moore.
“Transport infrastructure can help improve the effective supply of housing and ease affordability constraints, by giving buyers more suburbs to choose from that they can live in and commute to their job from,” Mr Moore said.
“Local communities can also see a boost to their housing values, as they benefit from better access to amenities, shorter commutes, and more demand to live in the area.”
Ben Plohl, founder and principal of BFP Property Buyers, said major existing and future infrastructure projects can often be predictors of future demand for housing.
"Growth in infrastructure leads to an increase in employment opportunities, which results in economic growth that generates an increase in demand for real estate,” Mr Plohl said.
"Infrastructure improvements - especially the social and business type - can lead to suburb revival and gentrification that can lead to an increase in prices."
The bulk of the billions of dollars committed to infrastructure initiatives in Victoria was for major freight works, including $3.1 billion towards the Melbourne Intermodal Transport package and $1.2 billion for the Beveridge Interstate Freight Terminal.