Perth Infrastructure Boom
I always encourage investors to keep an eye on planned infrastructure works within the Perth metropolitan area because investments in infrastructure always has the potential to drive both demand for rental property in the surrounding areas, and also provides an excellent opportunity for future capital growth. Rental properties in close proximity to infrastructure and quality amenity are always in high demand and both property owners and tenants. I draw attention in particular to recently announced upgrades to WA’s railway system with the State Government’s plans to invest $80 million in the Perth rail network to ease the pressure caused by high commuter numbers and a lack of commuter parking. These plans are certainly great news for savvy investors who get into the right houses in the right areas now with an investment property.
These are the plans that were announced early in August 2012.
• The $80 million investment will include the construction of the state’s biggest park-and-ride train station at Aubin Grove on the Perth-Mandurah line featuring a 2000-bay car park and a new bus terminal.
• The project also includes the addition of two three-railcar sets worth about $25 million to service the southern rail link, which already carries about 70,000 passengers each working weekday.
• In addition to upgrades to the southern network, the State Government has vowed to press ahead with plans to extend the Joondalup rail line to Yanchep which is good news for residents living and commuting in Perth’s northern suburbs.
Some experts have predicted a fifty percent population increase over the next twenty years which will double transport use and greatly increase reliance on buses, trains and the light rail system. Properties which are located within close proximity to public transport have historically shown strong demand from the rental market and enjoyed consistent long term capital growth. For these reasons it’s a good idea to keep a close eye on proposed infrastructure works and transport upgrades which may impact your investment areas.