Brisbane underground bus and train tunnel to boost values in adjacent suburbs
HOMEOWNERS in suburbs earmarked for Brisbane’s underground bus and train project may be set to gain more than just a faster commute to work.
According to property industry experts, new infrastructure is a major catalyst for home value growth. Diana Howes, managing director of Brisbane-based property research firm Resolution Research, said past trends showed suburbs with public transport under construction often fetched double-digit annual growth rates compared to the 3.4 to 4 percent average.
“What we’ve seen through an analysis of the Northern Busway, South East Busway and Airportlink is that values remain relatively stagnant during (the early stages of) construction,” she said.
“It’s flat in the first two to three years but escalates in the last two.
“In the last two years, including the year when it’s completed, you get much higher rates of growth.”
She said investors would likely make a push in the underground bus and train suburbs once they felt “confidence and certainty” around the development.
“Certainly the level of infrastructure spending is a key driver for people looking to invest in Brisbane,” she said.
“As we see increases in parking costs in the CBD and more congestion on our roads, (transport infrastructure) is becoming a critical consideration particularly across the rental market.”
Belle Property Bulimba agent Jonathan Harper-Hill said he predicted the project would turn Woolloongabba into a “property hotspot”.
He said the suburb, which is set to receive one of the underground bus and train’s three stations, would become a viable alternative to other inner-city locations such as New Farm.
“I think it will put Woolloongabba on the map for people who weren’t considering it in the past,” he said.
“Major infrastructure improvement leads to more confidence in residents and buyers.
“As time goes on, the suburb will become more and more desirable so any time from now is potentially a fantastic opportunity for buyers.”
Woolloongabba resident Dianne Clarke is currently selling her home at 16 Quarry St and believes the project will make homes like hers more attractive for investors, even though she is already near Park Rd train station.
“I think it will be good for the area,” she said.
The underground bus and train project is set for construction in 2015 to 2020.
It will run from Bowen Hills to Dutton Park with stations at Roma Street, George St in the CBD, and Woolloongabba.
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