New infrastructure projects in an area can kickstart a sluggish property market and drive prices higher.
And a wave of extra buyers and renters generally means an upswing in property prices, according to Hotspotting founder Terry Ryder.
By keeping an eye on where these projects are coming up, buyers can get in early and take advantage of the price growth.
Mr Ryder said transport infrastructure was the main factor that drove prices higher.
A relatively small investment in transport could have a bigger impact than other more expensive projects, Mr Ryder said.
Public transport links and freeways unlocked inaccessible pockets of the city and shortened lengthy commutes.
There is no shortage of transport projects under way in Melbourne, with train station upgrades, freeway expansions and the East West Link project all promising to improve access to hubs outside the CBD.
Paul Osborne, founder of buyers’ advocacy Secret Agent, said owner-occupiers would prioritise different surroundings than investors.
“If somebody is buying a home, what they’re buying is their own environment or habitat,” Mr Osborne said.
Different types of infrastructure, such as green spaces and school zones, became much more important for them, he said.
“It might be harder to quantify visual things, but they really make a difference,” Mr Osborne said.
Mr Ryder honed in on Casey and Sunshine as hot spots for future capital growth. Both are relatively affordable property markets, with projects such as the $880 million reconstruction of Sunshine train station and the expansion of Monash University’s Berwick campus heralding an increase in housing demand.
“We tend to regard that as the power combination — jobs plus affordability plus infrastructure,” Mr Ryder said.
“We find that over the long term, the best capital growth rates tend to be in cheaper areas because that’s where the mass demand goes.”
Activity is already brewing in Sunshine, where the median house price jumped 23.2 per cent in the June quarter from $500,000 to $539,000, according to Real Estate Institute of Victoria figures.
Barry Plant Sunshine director Jason Allen said investors and owner-occupiers were flooding into the area.
“People have taken stock that there’s a lot of money being invested here,” Mr Allen said.
The spend on the train station had been a large drawcard, but buyers were also coming to Sunshine after being outpriced in the inner suburbs, he said.
In the eastern suburbs, Ringwood has emerged as a site for change. The State Government has designated Ringwood as one of Melbourne’s seven “Central Activities Areas” to become a hub for future employment and public investment.
A $575 million expansion of the Eastland shopping centre and a $66 million upgrade of the Ringwood train station and bus interchange are two major projects already under way.
Carter Ringwood agent David Green said: “While there was nothing happening people weren’t investing. Now work has started, the floodgates are open.”
Part of the capital growth was likely to occur while projects were still under construction, Mr Carter said.
There has been a flurry of interest in development sites surrounding the shopping centre, with a crop of new apartment buildings set to hit the skyline.
Mr Carter sold a 919sq m block at 8 Bourke St — 150m from Eastland — for $1.705 million in July, smashing the reserve price by $705,000.
“The buyer owned some adjoining land, so they were prepared to pay a price others wouldn’t,” he said.
The improvement in Frankston’s property market since EastLink opened provides some insight to the extent infrastructure can impact prices.
Hocking Stuart Frankston director Adrian Foster said the market was thriving. There had been two stages to the rise in real estate activity, first when the project was announced and now that people could see the benefits.
“It gives you an amazing run down to the peninsula for weekend activities and also a quick drive to the city.”
When John and Sabrina Putmandecided to downsize, it was to achieve a better lifestyle.
An apartment on Bourke St, Ringwood — a hop, skip and a jump from the expanding Eastland shopping centre and the train station — offered the right mix of convenience and investment potential.
“I think Ringwood in the next two to three years is really going to kick on,” Mr Putman said.
“It’s very cosmopolitan and it’s going to be a great investment.”
He said the easy access from other parts of the city made Ringwood the popular choice for shopping in the eastern suburbs.
“It’s that little bit harder to get out to Knox,” he said.
“Then there’s Doncaster, where you can’t get a parking spot.
“That’s why so many people are coming out here.”
Having EastLink close by for a quick commute to the city or his work in Dandenong South was another selling point.
“There’s just one set of lights then I’m on the freeway,” Mr Putman said.
“We’ve got everything we need, like we’re living in the inner suburbs.”
WHEN TOO CLOSE IS NO COMFORT
BEING close to infrastructure is a drawcard, but there’s a danger in being too close.
Properties that face a main road, major intersection or train tracks can have noise, privacy and security concerns.
Paul Osborne, founder of buyers’ advocacy Secret Agent, said people generally paid 10-15 per cent less for properties in those positions.
He gave the recent sale of 31 Cromwell Rd, South Yarra, as an example.
The four-bedroom terrace house, set metres from the train tracks, sold for $1.53 million in May.
“It should probably be worth another $1 million on top of that,” Mr Osborne said.
Flight paths, cemeteries and uncertainty about future projects could also cause prices to drop, he said.
And while investors were generally less picky than owner-occupiers, that could raise problems in the future.
“Some investors are more likely to go for things like main roads,” Mr Osborne said.
“But that’s probably the last thing they should do. When you buy a property, you’ve always got to think about when it’s time to sell.”
Hotspotting founder Terry Ryder said there was an ideal proximity range — within walking distance but outside noise concerns.
“The ideal would be about a kilometre from a train station,” Mr Ryder said.
Original article published at www.news.com.au by Nicole Engwirda, The Herald Sun Real Estate 18/8/2014
BUDGET: Cash splashed to fix Ipswich’s congested highway
ONE of Ipswich’s worst intersections will be fixed with the Federal Government committing to fund an upgrade to the Cunningham Highway.
In his third budget, Treasurer Scott Morrison revealed $170 million would go towards improving the dreaded Amberley Interchange.
The project will include a realignment of the highway between Yamanto and Ebenezer Creek and an upgrade of the Ipswich-Rosewood Rd.
Expansions and growing military activity at RAAF Base Amberley has put pressure on the interchange.
The $170 million funding injection also comes as the Ipswich City Council considers a proposal from Lantrak to move 1 million tonnes of landfill each year to rehabilitate the New Hope coal mine at Jeebropilly.
According to the application more than 250 heavy vehicles would transit the highway each day.
The government says the Cunningham Highway upgrade will “improve travel reliability and reduce congestion”.
It is expected the Queensland Labor Government will match the funding to start the $340 million project.
Federal Labor MP Shayne Neumann confirmed his party would offer bipartisan support and also commit to fixing the highway in a “major boost for the economic capacity of the Ipswich region”.
“The road takes 2700 heavy vehicle movements a day, and plays a significant role in transporting people and freight between Brisbane and Sydney,” he said.
“These vital upgrades to the Cunningham Highway have long been identified on Infrastructure Australia’s Infrastructure Priority List.
“That’s why it’s disappointing the Turnbull LNP Government have had to be dragged kicking and screaming to fund this project.”
Become an entrepreneur
OLDER residents in Ipswich will be encouraged to become entrepreneurs so they can stay in the workforce longer.
The Federal Government will roll out 20 new entrepreneurship facilitators across the regions over the next four years.
Ipswich, along with central Queensland, Ballina and Tweed, will benefit from the program.
The small business experts will teach mature-age people how to start and maintain sustainable businesses.
The Federal Government has set aside $2.7 million in the 2018-19 financial year for the project.
A further $15 million will fund the program until June of 2022.
The government has also committed to continuing the Job Change project that assists mature-age workers to remain in the workforce as retirement and pension ages creep upwards.
Amberley cashes in on Defence spending
RAAF Base Amberley will take a share in millions of dollars in upgrades in the Defence portfolio.
A new Air Traffic Control Radar will be installed at Amberley as part of an estimated $96 million investment in new technology across several bases.
Working accommodation, maintenance, warehousing and training facilities will be built to support the introduction of the Growler Airborne Electronic Attack Capability aircraft.
The project is scheduled for completion by early 2021.
A C-17 maintenance facility, aircraft apron and associated infrastructure will also be constructed.
It is scheduled for completion by early 2019.
Australia’s largest solar farm planned near Ipswich
Somerset already hosts a number of energy projects including hydroelectric plants at Wivenhoe Dam and Splityard Creek Dam.Contributed
AUSTRALIA’S largest solar farm has been proposed for a rural site near Ipswich.
The proposed plant, east of Harlin along the D’Aguilar Highway, would have final capacity of 1,500 megawatts, six times larger than its closest rival.
Plans include two substations and the capacity to hire to 60 people.
The Sunraysia solar farm in NSW is Australia’s largest under construction, at 250 megawatts.
Other Australian solar farms of up to 1,000 megawatts have been proposed.
Somerset Mayor Graeme Lehmann said it was a complex development application from Ethos Urban planning consultants.
The company has been involved in other large infrastructure projects throughout Australia, on behalf of Sunshine Energy Australia Pty Ltd.
“We understand the attractions of the site include its proximity to the existing high voltage power network and proximity to Brisbane,” Cr Lehmann said.
“The site has been largely cleared in the past and is within one hour of the 570 MW pumped storage hydroelectric plant at Splityard Creek which is also in the Somerset Regional Council area.
“The development application includes two substations, facilities for up to 60 employees and provision for battery storage.”
“The application has been referred to various government departments and agencies for their input and we will carefully assess it against our planning scheme like any other proposal.”
Somerset Regional Council is reviewing the application.
Education City link approved by Ipswich Council
A FOOTPATH that will link Springfield’s Education City to the Robelle Domain Parklands in Springfield Central has been approved by Ipswich City Council.
Plans were lodged by Springfield Land Corporation on February 2 this year and first approved on February 26.
However Ipswich City Council did not approve the use of Hoop Pines to landscape the pathway.
After some negotiating a new decision notice was issued on April 9 with the condition stipulating that Hoop Pines were not to be used deleted.
The land where the pathway is being constructed is lot 810 Sinnathamby Boulevard, Springfield Central.
Described as an open space boulevard pathway, the public concrete path and associated landscaping work has been approved in full subject to conditions.
Footpath lighting is to be installed, and a spotter catcher is to be engaged to supervise vegetation removal and ensure any native fauna including native bees are identified and relocated.
The spotter catcher is to submit a report before and after vegetation clearing works are undertaken detailing what wildlife has been identified and preventative and remedial actions taken to ensure animal safety.