More Infrastructure Development To Drive Property Prices In Victoria

Victoria is king of the roads
Philip Hopkins
November 9, 2011

Between 2000 and 2010, Victoria accounted for 26 per cent of the $18.4billion invested in transport infrastructure nationally.
INVESTMENT in transport infrastructure will drive new Victorian commercial and industrial property markets, ensuring the state maintains its industrial leadership, according to a new report from CBRE.

CBRE’s Big Wheels Keep on Turning report, which encompasses 20 years of transport infrastructure monitoring and research, emphasised that infrastructure investment improved access to new industrial areas and the development of state-of-the-art logistics services.

This in turn increased the competitiveness of business locations with improved access and ultimately provided for a more efficient, effective and growing economy.

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In this context, CBRE executive director, global research and consulting, Kevin Stanley, said it was no surprise the Victorian economy had outgrown its long-time state rival, New South Wales, for 10 of the past 12 years.

Between 2000 and 2010, Victoria accounted for 26 per cent of the $18.4 billion invested in transport infrastructure nationally. This compared with NSW’s 18 per cent share.

”Our list of potential projects shows investment in Victoria is set to rise even further over the next 10 years to 32 per cent – second only to Queensland and a long way ahead of what is presently proposed for NSW,” he said.

This could translate to average per annum expenditure as high as $2.5 billion, up from just under $1 billion over the past 10 years.

Key future initiatives in Victoria included:

¡öThe outer Metropolitan Ring/E6 Transport Corridor, although unlikely to start before 2020, ”is a visionary transport project of national significance and will provide for the next generation of industrial development in Melbourne”.

¡öWestLink, a proposed road tunnel, which aims to connect the inner west and outer west suburbs of Melbourne by alleviating traffic pressure on the West Gate Bridge and improving links between the Port of Melbourne and Melbourne’s industrial west.

¡öThe North East Line, which would provide a long-awaited road connection between the Metropolitan Ring Road in Greensborough and the Eastern Freeway in Bulleen.

¡öThe Dingley Freeway – four lanes extending from South Gippsland Freeway to Heatherton Road in Springvale.

¡öThe potential to relocate the export and import of cars to the Port of Geelong to ease pressure on the Port of Melbourne. Geelong is ”well positioned to take advantage of a new industrial or logistics opportunity”.

CBRE’s Victorian state director, industrial & logistics services, Dean Hunt, said transport infrastructure had reinforced Melbourne’s position as the largest industrial property market in the country and transport hub for south-east Australia.

”The challenge for Victoria now is to maintain or actually increase this investment to provide for further growth,” he said.