Infrastructure commitments to boost new growth areas

Date: 2 May 17

The Real Estate Institute of Victoria has welcomed significant road and rail infrastructure investment by the State Government, which will drive growth in areas further from the city. 

REIV Chief Executive Officer Gil King said the $4 billion investment in regional Victoria - including $1.45 billion for regional rail services - will increase buyer demand for homes across the state. 

“Greater road and rail infrastructure will not only improve the desirability of regional Victoria, but will also result in higher property prices in these areas in the long-term,” he said. 

“We’re already seeing strong price growth in towns within commuting distance of Melbourne, especially in Geelong where the median house price is now $701,000.”

The REIV also supported the State Government’s $1.9 billion investment in our roads, which includes $700 million over four years to upgrade the M80 Ring Road and $300 million to build the Mordialloc Bypass.   

A further $879.5 million will be invested in public transport for metropolitan Melbourne with eight additional train services on the Werribee line and new bus services in a number of outer suburbs. 

“Improved transport services in Melbourne’s outer suburbs will drive continued buyer interest in these suburbs, which have experienced strong price growth in the past two quarters.”

“With estimated population growth of around 100,000 people each year, infrastructure investment in these new growth areas is essential.”

Significant Budget measures announced include $2.9 billion for the state’s health care system and $685 million for Victorian schools.

The State Government also announced changes to land tax valuations, which will now be conducted on an annual basis. 

Mr King called on the Andrews’ Government to consider reform of the land tax model, which contributed $2.5 billion in the last financial year alone.

"Land tax is a considerable issue in Victoria with investors across the property sector experiencing exorbitant increases. A percentage cap on annual increases is necessary to ensure the ongoing viability of property investment in this state.”