New infrastructure will boost middle, outer suburbs

The REIV has welcomed major new investment initiatives by the State Government in schools, roads and rail which will strengthen Melbourne’s middle and outer suburbs.

The Budget was delivered on the same day as a 25 basis point reduction to the RBA cash rate providing a further boost to the property market.

Significant budget measures include $111m for 10 new schools, including eight across Melbourne, $2.4bn to remove level crossings across the city and $600m to build new trains and trams.

REIV Chief Executive Officer Enzo Raimondo said that the Budget would enhance the livelihood of Melburnians, including those in the city’s outer suburbs.

“It will further enhance the attraction of these outer suburbs as places to live, with access in coming years to even more infrastructure,” he said. “Over time, we expect this to not only improve their ‘liveability’ aspects but to also feed through to improved property prices in these areas.

“Our experience is that improved infrastructure, especially road and rail links, lead to improvements in property values.”

Regional Victoria will also benefit from a $500m investment through the Regional Infrastructure Development Fund. This will deliver a Ballarat station redevelopment and projects in Bendigo, Ararat, Wangaratta and Gippsland.

He added that a 3% duty (the “Land Transfer Duty Surcharge”) for non-resident Australians purchasing property in Victoria would assist the Budget by a modest $39.5m in 2015-16.

“While this is a relatively low level of revenue over the next 12 months, it will ensure that those investing in property from outside Australia contribute to Victorian services and infrastructure.”