The 2024-25 Australian Federal Budget, announced by Dr. Jim Chalmers, promises significant investment in infrastructure, particularly in roads, rail, and regional areas. This budget is set to impact several key hotspots across Australia, offering a boost to local economies and real estate markets.

Here’s a breakdown of the key announcements in the 2024-25 Federal Budget, and of the key areas slated to benefit from these developments.

Major Investments in Infrastructure

1. Roads and Highways:

Significant funding has been allocated to improve major roadways, easing congestion and improving connectivity. Key projects include:

• Bruce Highway in Queensland: The budget allocates $467 million to upgrade the Bruce Highway, which spans over 1,700 kilometres from Brisbane to Cairns. This funding will focus on improving safety, increasing capacity, and enhancing flood resilience.
• Mt Crosby Road Interchange Upgrade and Bremer River Bridge Strengthening in Queensland: $134.5 million is allocated for the Mt Crosby Road Interchange Upgrade, and $42.5 million for the Bremer River Bridge (Westbound) Strengthening on the Warrego Highway, aimed at enhancing connectivity and infrastructure resilience.
• North East Link in Victoria: An additional $3.25 billion has been provided for the North East Link project, which will complete the missing link in Melbourne’s freeway network, reducing congestion and travel times across the city.
• Road Improvements in South Australia: The budget includes $120 million for the Mount Barker and Verdun Interchange Upgrades, and $100 million for the South Eastern Freeway Upgrade, improving safety and traffic flow.
• Roads Package in Tasmania: Tasmania will receive $219 million in a roads package funding existing and new projects, including $124 million for new highway upgrades and corridor planning, and $95 million for existing projects.
• Rural Road Upgrades in Western Australia: $54 million has been allocated for the Regional Road Safety Program – State Roads, enhancing road safety and infrastructure in rural areas.

2. Rail Projects:

Rail infrastructure receives a hefty boost, targeting both metropolitan and regional lines. Notable projects include:

• South East Queensland Rail: $1.15 billion is allocated for the construction of the line from Beerwah to Caloundra. Additionally, $226.7 million has been allocated to the Beerburrum to Nambour Rail Upgrade, and $431.7 million for the Coomera Connector Stage 1 project.
• Inland Rail Route in Queensland: $720 million will be earmarked for the construction of the Inland Freight Route in Queensland, significantly enhancing freight efficiency and connectivity.
• Melbourne Metro Tunnel: An additional $2 billion has been allocated to expedite the completion of this vital project. The Melbourne Metro Tunnel aims to untangle the city's rail network by creating a new end-to-end rail line from Sunbury in the west to Cranbourne/Pakenham in the southeast. This will increase capacity, reduce congestion, and improve reliability across the network.
• Sydney Metro West: The budget includes $3 billion for the Sydney Metro West project, a new underground metro railway connecting Greater Parramatta and the Sydney CBD. This investment will help reduce travel times and support the growing population in Sydney's western suburbs.
• Cross River Rail in Brisbane: An additional $1 billion is allocated to the Cross River Rail project, a 10.2-kilometer rail line that includes a 5.9-kilometer tunnel under the Brisbane River. This project aims to alleviate congestion in the city's rail network and improve access to the CBD.
• Metronet in Western Australia: An additional $1.4 billion has been provided for existing METRONET projects, enhancing public transport connectivity and efficiency across Perth.
• High-Capacity Signalling in Western Australia: $300 million has been allocated to a new High-Capacity Signalling program, improving rail network capacity and reliability.
• Regional Rail in Victoria: $290.1 million has been allocated to the Gippsland Rail Line Upgrade, and $150 million to upgrade the Maroona-Portland Rail Line, enhancing regional connectivity and transport efficiency.

Regional Hotspots

The budget underscores a strong commitment to regional development, recognising the potential for economic growth outside major metropolitan areas. Whilst we would not be rushing in to invest in all areas set to benefit from the allocated spending, there could be some excellent opportunities in some areas for savvy investors.

1. Northern Territory:

The Northern Territory is set to receive significant investment aimed at boosting economic development and enhancing infrastructure. This includes:

• Remote Housing: $2.1 billion will be provided as part of a joint $4 billion investment with the Northern Territory Government for housing in remote communities, as part of a 10-year housing agreement.
• Rural Roads: $72 million for the Port Keats Road – Wadeye to Palumpa (Nganmarriyanga) in the Northern Territory, and $64 million for the Berrimah Road Duplication – Stuart Highway to Tiger Brennan Drive. Additionally, $25 million is allocated for the Carpentaria Highway Upgrade.

2. Western Australia:

Western Australia benefits from a substantial allocation for infrastructure projects, including:

• Rural Road Upgrades: $54 million for the Regional Road Safety Program – State Roads, enhancing road safety and infrastructure in rural areas.
• Metronet: The additional $1.4b that has been allocated to existing METRONET projects will be a transport win for the state, and likely make some areas more attractive reducing traffic congestion.

3. South Australia:

South Australia sees a focus on infrastructure that supports both urban and regional areas:

• Road Improvements: $120 million for the Mount Barker and Verdun Interchange Upgrades, and $100 million for the South Eastern Freeway Upgrade, improving safety and traffic flow.

Economic and Real Estate Impacts

These infrastructure projects are expected to have far-reaching impacts on local economies and real estate markets. Improved infrastructure typically leads to increased property values and attracts new residents and businesses, driving demand for housing.

1. Increased Property Values:

Areas benefiting from infrastructure upgrades often see a rise in property values. Improved accessibility and reduced travel times make these areas more attractive to homebuyers and investors. As the workforce returns to the office, at least to some extent on an ongoing basis, the reduction in travel congestion and commute times are important variables.

2. Boost to Local Economies:

Infrastructure projects create jobs and stimulate economic activity. Local businesses benefit from increased demand for services, and new developments can attract further investment. This is particularly the case for longer-term projects, which can drive further population growth, and ultimately property prices.

3. Regional Growth:

Investment in regional areas supports population growth and economic diversification. Enhanced transport links make it easier for businesses to operate and for residents to commute, fostering regional development.

Conclusion

The 2024-25 Federal Budget marks a significant commitment to improving Australia's infrastructure, with a focus on roads, rail, and regional development. These investments are poised to deliver substantial benefits to key hotspots across the country, driving economic growth and boosting real estate markets. As these projects unfold, Australians can look forward to improved connectivity, enhanced local economies, and vibrant, growing communities.

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General Information Warning: The information contained herein is of a general nature only and does not constitute in any way, personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional property investment advice specific to your circumstances.