July 2018 :: Latest News
Infrastructure + Industrial Property
The term “money grows on trees” has been coined for residential property, linking leafy suburbs with capital growth. In industrial property, though, it’s all about access, and we like to say “money grows on freeways”.
There is a direct link between an industrial site’s value and its proximity to the main freeway networks, so the infrastructure “boom” Melbourne is experiencing is having a two-fold effect on industrial property values.
Decreased travel times to key industrial locations with new and improved road networks mean sites that are directly affected will increase in value.
Just as significant is the cost of the projects themselves, with projects planned in excess of $8.58 billion in Melbourne’s metropolitan area – and the vast majority of labour, plant and equipment, supplies etc. being sourced locally – the infrastructure boom is having a direct impact on local business confidence. This, in turn, is driving demand for industrial sites.
Summary of Planned Projects
- The Western Distributor – West Gate Tunnel Project (Construction January 2018-2022)
The $5.5 billion Western Distributor/Westgate Tunnel project delivers an integrated package of works to improve and build on.
- Improving arterial roads in Melbourne’s outer suburban areas
The Victorian Government has made significant investment for outer suburban roads to cater for the rapid population growth in Melbourne, including a $1.8 billion program of road upgrades and maintenance in the outer west.
- CityLink Tulla Widening
The property and northern industrial region will directly benefit from $1.28 billion CityLink Tullamarine Freeway upgrades, currently underway.
- North East Link
The North East Link will deliver Victoria’s longest road tunnels, including three-lane twin tunnels which will travel for five kilometres beneath Bulleen Road, residential and environmental areas. This will result in up to 30-minute faster trips between Melbourne’s north and south-east, with toll-free connections retained for local trips.
It’s an exciting time for Melbourne’s industrial property market as the infrastructure boom is directly impacting on values.
