On track for growth: Sydney and Melbourne’s important new train lines
When major infrastructure is announced and construction starts, property values typically trend upwards – which is why experienced investors tend to keep a close eye on the infrastructure ‘x-factor’ when researching the long-term growth potential of a given area.
The $8.3 billion Sydney Metro Northwest is a prime example. This project will deliver fast, driver-less trains, every 4 minutes in peak hour to 8 new stations between Cudgegong Road (past Rouse Hill) through to Epping and onwards to Chatswood.
Regular train services are due to open to the general public in the first half of 2019, and property values have been rising notably in suburbs along the train line since the O’Farrell government announced its commitment to deliver the project back in 2011.
In last week’s Federal Budget announcement, transport infrastructure was a key theme, with two important new rail projects planned for Melbourne and Sydney, which are relevant to investors.
North South Rail Link (& South West Rail Link Extension)
The Federal and NSW State Governments have agreed to jointly fund a $7 billion north-south rail link which would run from St Marys in Sydney’s north west down to Badgerys Creek Airport as Stage 1.
Stage 2 of the project would continue the rail link through to Macarthur in Sydney’s south west and include a South West Rail Link Extension which will extend from Leppington Station to North Bringelly for connections with the North South Rail Line.
The Federal and NSW Governments are currently consulting on recommended corridors of land to acquire for the two train lines. They have each committed $50 million to develop a business case for the entire rail project (all stages) and to finalise a route and station locations.
Source: Australian Governmnet Department of Infrastructure, Regional Development & Cities
Prime Minister Malcolm Turnbull said: “the objective [for the St Marys – Badgerys Creek rail link] is to have the rail open and operating when the airport opens” in 2026.
The North South Rail Link is designed to put western Sydney residents within a 30-minute commute to up to 200,000 jobs which will be created in the new ‘Western Parkland City’ over the next 20 years.
There are plans to extend the passenger rail corridor between St Marys and Schofields as well in future.
Melbourne Airport Train Link
Headlining the 2018 Federal Budget infrastructure spend in Victoria is the $5 billion Melbourne Airport rail link. This project will build the long-awaited train link between Melbourne’s Tullamarine airport and the CBD.
Much like the Sydney Metro northwest, the Melbourne Airport rail link has been debated and planned for decades, however the Prime Minister says his funding promise will ensure it becomes a reality.
The Federal Government expects the Victorian Government to match the Commonwealth’s funding commitment.
“There have been countless reviews, reports and recommendations, but Melbourne is still waiting for a service almost all of the world’s great cities take for granted. With our commitment of up to $5 billion … we are guaranteeing the Melbourne airport rail link will be built,” Mr Turnbull told the Herald Sun.
Construction of the rail link could begin as early as 2020. The trains would service 60 million passengers a year on one of the 4 possible routes:
- Craigieburn Link: Would follow existing Craigieburn line before turning off at Broadmeadows
- Albion East Link: Would take Metro Tunnel and Sunbury line to Sunshine before turning off for airport
- Flemington Link: Would travel through Flemington and Kensington with new stops in Maribyrnong
- Direct Tunnel Link: Would take a tunnel from Footscray to Maribyrnong with new stops at Victoria University and in Maribyrnong.
Source: ABC News
“There are many examples of the positive effect new rail infrastructure has on an area, and it’s one of the key factors we track when looking for the next potential area to outperform the wider market,” said Ironfish National Apartments Manager, William Mitchell.
“The combined funding commitments at both Federal and State level for these game-changing projects will no doubt increase the liveability of the surrounding areas, and we are watching these suburbs very closely.”