Infrastructure to strengthen thriving market
The Australian property market is experiencing its best September in years, Raine & Horne has reported.
Clearance rates are averaging around 75 per cent in major population centres, executive chairman and CEO Angus Raine said, with up to 85 per cent in auction hotspots Sydney and Melbourne.
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Mr Raine said this was a surprising result since federal election campaigns tend to slow real estate activity. He believes, however, that the Coalition’s campaign announcement to inject $20 billion into infrastructure projects will boost property values in the long term.
“I’m particularly heartened by the federal Coalition’s commitment to improving our roads, and projects such as Queensland’s Bruce Highway, the Westconnex in Sydney and the Perth Gateway will prove a significant boost for long-term housing values,” said Mr Raine.
“Infrastructure improvements that reduce commuting times between – and within – our major population centres will be great news for economic growth, jobs and real estate values.”
Mr Raine cited the precedent of home values in suburbs such as Glenwood and Bella Vista in Sydney’s north west, which jumped by around 10 per cent between the February 2002 announcement of the major orbital road, the Westlink M7, and the start of its construction in July 2003, as an example of infrastructure strengthening the market.