Seven ways infrastructure boosts your property’s value or investment outcome
Local public and private infrastructure is a key determinant of value for property. But what are the local amenities that really support price growth?
Many investors were keeping a close eye on the federal budget, with big projects on the way as part of a $10 billion infrastructure package from the Abbott government.
As Observer Terry Ryder has said, to predict price growth, you need to follow the infrastructure trail.
Property Observer looks at the pieces of infrastructure that will deliver value to your property purchase.
- Train stations
Prices will be boosted by infrastructure that increases demand from the desired buyer groups. Easy rail access to employment hubs will make a suburb popular with employed professionals, workers and students. - Education facilities
Good schools, kindergartens and universities will all drive demand for a suburb. Not only do schools support population growth for up and coming suburbs, but good quality schools will attract buyers who are willing to buy their way into the right school zone, as seen in Balwyn and McKinnon. - Airport
As we learned from The Castle, properties can languish near the noise and pollution offered by an airport. But away from the flight path, prices can flourish thanks to increased employment and tourism in the area. Many are looking towards Badgerys Creek to see if Sydney’s second airport will pay off for investors. - Roads
Roads, like rail, will attract buyers who need to be connected to employment hubs. Brisbane’s Toowong, Woolloongabba and Hamilton are all set to benefit from road projects in the coming years. - Hospitals
Hospitals and other emergency services are vital pieces of infrastructure for a suburb. While Hobart’s property market is still underperforming, some believe that the $340 million secured by Independent Andrew Wilkie for the redevelopment of the Royal Hobart Hospital helped keep the city’s market out of an even deeper slump. - National parks
Tourism and recreation facilities are often key drivers of demand for a suburb. Colliers project director Curtis Field, who is marketing the New South Wales North Shore community development Crimson Hill, says that the national park bordering the project has been a big draw card for buyers.
“We’ve seen purchasers come in and want to downsize and have something brand new that’s not on the highway, not sitting on the train station, but bordering the bushland,” he said. - Jetties and marinas
The past year has seen many developers marketing jetties and marinas as prime pieces of private infrastructure for new apartments. One such development is Wyndham Harbour in Port Phillip Bay, set to be Victoria’s biggest marina upon completion.
Whether public or private, local infrastructure will be a major factor in the kinds of buyers your prospective property attracts. Recreation facilities could attract young families or retirees, roads and rail can lure professionals and students and jetties and marinas can help secure luxury buyers for waterfront suburbs.
If you're looking for price growth, make sure you keep one eye on the infrastructure to come.
Photo courtesy of Flickr/Creative Commons.