One of the key factors that can turn a real estate location into a high-growth area is investment in new infrastructure. Right now, Australia is seeing record levels of infrastructure spending, creating prime opportunities for property investors.
The current scale of infrastructure investment across the country is unprecedented. With over 40 years of experience researching and writing about real estate, I have never seen spending on this level. As of 2024, projects either underway or completed across Australia totalled more than $500 billion, with an additional $370 billion in advanced planning stages.
These projects include, hospitals, universities, airports, motorways, rail links, shipbuilding facilities, and major renewable energy projects like wind and solar farms. Part of this surge in infrastructure investment was driven by the economic downturn caused by COVID-19 lockdowns, as governments prioritised large-scale projects to stimulate economic activity, create jobs, and avoid recession.
Infrastructure projects have a profound and lasting impact on property markets. They generate demand for workers and boost local businesses that provide goods and services. The effects don’t just stop at construction jobs. For instance, a new $1 billion hospital might create 3,000–4,000 construction jobs, but once operational, it can support up to 6,000 ongoing jobs, significantly influencing housing demand in the area.
I recently conducted an analysis of infrastructure investment in the capital cities and regional areas of Australia on a per capita basis – in other words, the level of spending relative to the population of the city or regional jurisdiction.
And the places with the biggest impacts from current and planned infrastructure were Darwin, Brisbane, Adelaide and Melbourne, among the capital cities, and the regional areas of Queensland and South Australia.
It’s a key factor to look for when considering good places to buy for future capital growth. A location with a big program of infrastructure development will always have rising house prices.
