Melbourne’s Massive Infrastructure Spend and It’s Impact On Property Prices

24th of April, 2023

In this blog series we will be diving into some of the major Australian capital cities and take a look at the impact of their respective infrastructure spends on the surrounding real-estate prices.  Thanks to Omar Moujalli for his continued research and taking the time to write these blogs for us. If you would like to have a chat with Omar you can get in touch with him via the “Lets Get Started” form below.

Melbourne has been witnessing a significant transformation in its infrastructure landscape, with the government investing heavily in the city’s infrastructure. These investments have had a notable impact on the city’s property market, with property prices experiencing a significant surge over the last 9 years. In this blog post, we will explore the impact of recent infrastructure spends on Melbourne’s property prices.

One of the significant infrastructure projects in Melbourne has been the construction of the Metro Tunnel, which is a 9-kilometre rail tunnel that connects the city’s north and south-east. This project has created thousands of jobs and stimulated economic growth in the city. It has also led to an increase in property prices around the stations and along the route. Properties located near the proposed stations have seen significant price growth, with some areas experiencing up to 20% price growth in just one year.

Another significant infrastructure project in Melbourne has been the West Gate Tunnel Project. This project aims to reduce congestion on the West Gate Bridge and improve access to the Port of Melbourne. This project has also had a significant impact on property prices, with suburbs located closer to the project’s construction site experiencing higher growth rates in property prices. Properties located in areas like Footscray, Yarraville, and Newport have all experienced substantial price growth since the announcement of the West Gate Tunnel Project.

Another significant infrastructure project in Melbourne has been the West Gate Tunnel Project. This project aims to reduce congestion on the West Gate Bridge and improve access to the Port of Melbourne. This project has also had a significant impact on property prices, with suburbs located closer to the project’s construction site experiencing higher growth rates in property prices. Properties located in areas like Footscray, Yarraville, and Newport have all experienced substantial price growth since the announcement of the West Gate Tunnel Project.

The government’s investment in public transport infrastructure has also led to an increase in property prices in Melbourne’s outer suburbs. Areas like Cranbourne, Pakenham, and Clyde have experienced significant growth in property prices, with the extension of the Cranbourne Line and the introduction of new train services in the area.

In conclusion, the recent infrastructure spends in Melbourne have had a significant impact on the city’s property prices. The government’s investment in major infrastructure projects has created jobs, improved transport links, and stimulated economic growth, which has led to an increase in demand for property in the affected areas. It is essential to note that the infrastructure projects’ impact on property prices is not uniform, and prices vary depending on the location of the property. However, it is evident that infrastructure investment plays a significant role in shaping property prices in Melbourne. In the second half of the property cycle, we expect Melbourne to perform well and outperform Sydney which had a more stellar first half of the cycle. There are locations in Melbourne which we believe will outperform the averages for the city. Get in touch to drill down further on the pockets primed for better capital growth.

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