High speed rail network approval will see property prices grow
Regional real estate values can expect double figure growth on the back of up to $108 billion of new infrastructure, a leading real estate group has claimed.
The east coast high-speed rail network has the potential to solve affordability issues in Sydney as well as push up the prices in regional centres in New South Wales, according to Raine & Horne CEO Angus Raine.
The second, and final, stage of the High Speed Rail Study will be completed late this year and will determine the alignment of the tracks and, importantly for investors, the placement of stations.
"I acknowledge a fast train between Brisbane and Melbourne has been discussed for two decades, but it has the ability to solve the affordability issue in Sydney and push up regional real estate values by as much as 10 per cent once it gets the go ahead from Canberra," said Mr Raine.
An AECOM interim report in January indicated that the high-speed network would reduce commuting times to just one hour between Sydney and Canberra and 40 minutes between Sydney and Newcastle.
The interim report acknowledged that it would potentially carry 54 million passengers by 2036.
Mr Raine has suggested that Goulburn be considered for a station by the Government.
"Goulburn is a major inland city centrally located between Sydney and Canberra and is very affordable with three bedroom houses for under $200,000, while workers could be in Sydney in roughly 30 minutes.
"Likewise a high-speed train could encourage more businesses to shift to regional centres such as Newcastle and Gosford. This will help to generate jobs growth, which is a key factor in long-term real estate growth,” he said.
Principals from Raine & Horne offices in the regional centres agreed that it would be a significant boost to the system.
Raine & Horne Charmhaven co-principal Andrew Sorensen has said that the Central Coast’s Wyong Shire is also a consideration for investors looking for the low entry point.
While there is already growth of between three and five per cent, Mr Sorensen expects that this would jump to 10 per cent if the line is approved.
Raine & Horne Newcastle co-principal Jason Maxwell said that there would be a major impact from the development, and Raine & Horne Gosford co-principal Geoff Tilden said that it should be an attractive prospects for investors looking for low-entry points and capital growth.
"There are up to 40,000 commuters travelling from the Central Coast to Sydney on a daily basis and they must battle with a faltering rail service and the challenging F3," said Mr Tilden, expecting that this number could be doubled with the reduced commute time.
However, he said that investors should not expect to see an impact in prices until construction begins.
"There are three bedroom homes for sale for under $320,000 in North Gosford, however we'd need to see some holes in the ground before there'd be an impact on values," said Mr Tilden.