The results are in and Victoria is expanding in numbers and large construction infrastructure projects, especially in Melbourne. Across the calender year for 2017, the Victoria’s economy expanded by 4.5 per cent (state final demand), which is almost double the national rate of 2.4 per cent growth.
Confidence in the region is up, with unemployment at 5.3 per cent – the second lowest rate in the country. Victoria has added more than 177,000 employees and self-employed workers to its payroll (public and private) over the past two years.
The Australian Construction Industry Forum (ACIF) estimates the dollar value of work done on building and civil infrastructure construction throughout the state to come in at $52.883 billion in 2017/18 – up by a quarter on the previous year.
Victoria finds itself in the midst of a construction boom with four 100-meter-long boring drills to arrive later this year, to begin work on the Melbourne Metro Tunnel project estimated to be $11 billion. The project will deliver twin nine-kilometre rail tunnels from the west of the city to the south-east, five new underground stations and train / tram interchanges between the new Anzac Station and the Domain Interchange.
Other current large infrastructure projects include the removal of the level crossings, the widening of City Link and the Tullamarine Freeway. Future infrastructure projects include the West Gate Tunnel and North East Link. The Victorian government announced a $13.7 billion spending program for infrastructure in 2018/19, in the May budget.
Rail Link Between Tullamarine’s Melbourne Airport And The CBD
In a pre-budget announcement, the Federal Government has pledged $5 billion to the proposed rail link, with the State Government yet to agree to matching the dollar for dollar the pledge. The project is estimated at $10 billion, however the State Government continues to wait on a report from Canberra on how much it may cost, the best route and how to build it.
The project has been promised since 1963, with the Premier earlier promising construction will be underway before 2025. $40 million has been set aside to assess at least three routes with $3 million having been spent so far on the business case.
When Evaluating a region, the overall economic health and prospects for growth both play a big factor in deciding where to buy. These infrastructure projects give regions a massive boost.
It’s easy to evaluate from afar and see the opportunity in areas that others don’t see. Do Victorians see the growth, or are they caught up in local issues? Do Sydneysiders focus on the car in front in the traffic, or do they look up and see the potential from new rail, new tunnels? When you broaden your geographic investment horizon with keeping an eye on infrastructure projects as these deliver proven growth in property prices, you set yourself up for more property investing success.