Infrastructure will be key for growth going into 2023’s soft market conditions, according to Suburbanite Principal, Anna Porter.
Porter firmly believes when dabbling with an infrastructure play, you should go for infrastructure that creates long term employment as opposed to projects that lack job creation.
“Short term plays like new road construction will not have a strong or sustainable flow on effect to the housing market,” she says.
“There’s better infrastructure to chase when it comes to choosing a location for your purchase.”
According to Porter, Adelaide is a benchmark example for projects that are a catalyst for underpinning a robust property market and in turn the most suitable location for an infrastructure play.
“The flow on effect from the recently completed Royal Adelaide Hospital is already starting to make headways in the local market,” tells Porter.
“The site has also been chosen for the $3.2 billion Adelaide Royal Hospital for Women which will bolster the medical capabilities for the State,”
“Adelaide’s creating a medical powerhouse of infrastructure with two projects both very significant in their own right, amongst other notable projects in varying industries.”
Suburbanite have seen Adelaide perform exceptionally well over recent years, noting South Australia is the only state with double digit annual growth in Australia.
With the boost to infrastructure and subsequent job creation, Porter picks Adelaide as the most stable market for investors going into 2023.
“The infrastructure and incentives we’re seeing in South Australia will promote thousands of new jobs underpinning employment, financial security, cash flow into the economy and in turn the property market,” says Ms Porter.
“Over to Perth and we can expect a similar sort of flow on effect with the construction boom starting to break ground,”
“Construction has already commenced on Perth’s Hub Development which will draw education, lifestyle, commercial and residential community connections to the state.”
Whilst a new road development may not have a direct impact on the property market, Porter believes the $12 billion St Mary’s Metro Line in Sydney will.
“If you missed the Badgery’s Creek Airport boat, consider the surrounds of St Mary’s which is earmarked to be the new second major hub after Parramatta,” shares Porter.
“The Metro will have 6 brand new stations which will connect in with the existing rail network and operate in a north and south direction to the aerotropolis,”
“We can expect connectivity to improve which will activate the area immensely and boost the property market through the transport upgrades.”
Contrary to these powerhouse projects, Tasmania has put forward a number of projects as concept or proposal but very few are yet to turn soil, warns Porter.
“Tasmania is fraught with danger,” she warns.
“The projects that are getting through the gatekeeper aren’t the projects that will have any effect on the property market,”
“We’ve been talking about the Battery of the Nation for years now and yet still no real progress has been made or indication that this will be a job creator.”