How Does Transport Infrastructure Impact Your Home’s Value?
What happens when population increases and petrol prices rise? Strictly in terms of transport, the cues are distinctly clear. More population means more vehicles on the roads and this implies further congested roads. Rising petrol prices would imply vehicle-owners’ penchant for driving for lesser hours- not possible in congested roads. This clearly illustrates why transport infrastructure is such an important pillar of the economic growth.
With good roads, farther areas can be reached faster
Let us say a place A is 10 kilometres away from the CBD area and place B is 15 kilometres away. This said, you may reach CBD faster from place B if 1) the roads are less congested 2) you have access to better roads and 3) if the roads are wider and can encompass higher traffic volume.
Keeping pace with the immense possibilities of the harbour city, the government has introduced many transport infrastructure projects. Just as mentioned above, they have the singular aim of improving rail and road connectivity. Talking of the rail link, the light rail system under proposal will give unprecedented rail access to those suburbs which have as yet been feeding on congested and overdone road routes.
Capital growth for suburban properties
As an investor, you have to be shrewd enough to realise how the infrastructure changes may impact capital growth and rental yields. How they impact your property portfolio in general. All you need is to be astute and absorb the crux of government investments. For instance, are the roads being widened around the suburb your property falls in?
Are the bridges being reconfigured for soaking up higher traffic? What initiatives apart from these are being thought of to minimise travel time?
Are roads being planned to connect the suburban neighbourhood with the CBD area?
As an aside, if you have managed to figure out really lucrative buying rates for a suburban property, take into account how the changes in transport infrastructure may streamline the prospective neighbourhood with the CBD area.
If you think the suburb will become perceptively a lot closer once the government moves are implemented; buy in the given suburb in advance. For all you know you may witness a 200% price escalation.