How important is transport infrastructure for property investors? | Damian Collins

Why is transport infrastructure so important for property investors?


And what type of projects can typically impact on property prices the most?

In recent months, our various state governments has announced a number of significant investments in transport infrastructure.

This may have pricked the ears of some property investors who recognise the importance of these projects in determining future property hotspots.

These developments generate demand for housing and can cause price rises in adjacent suburbs.

Sometimes the benefit to an area is obvious, other times only the truly astute investors will recognise the flow-on effects.

So why is transport infrastructure so important?

And what type of projects can typically impact on property prices?

An area’s “value” is based on many things including its proximity to major centres, lifestyle attributes, beauty, and safety.[sam id=47 codes=’true’]

If new transport infrastructure improves an area in one of more of these factors, the value of the area should increase.

New infrastructure, such as major connecting roads, can greatly affect people’s perception of distance.

In some instances, a suburb may have better access to the CBD than suburbs closer to the city because of better roads.

But it’s not just distance that can be impacted.

New infrastructure can also improve an area’s beauty and safety.

What types of infrastructure projects have the biggest impact?

In Perth, projects involving the rail network (including the proposed light rail system), new major roads, or significant improvements to existing roads have the potential to impact on property values.

Extensions to the existing rail line can certainly improve the prospects of outlying suburbs by providing better access to the city.

Similarly, the proposed light rail system will provide some suburbs that previously relied on buses with direct rail links to the CBD and other major centres.

It’s not just new roads that can make a different but even widening of roads can impact areas by reducing congestion and reducing travel times.


Reconfiguring of roads and new bridges can also make a significant change.

How do investors take advantage of transport infrastructure developments?

By investing in the relevant areas before buyers realise the full benefit of the projects.

Good transport infrastructure is vital for a thriving economy, and public transport in particular, is becoming increasingly important as our population swells and the price of petrol increases.

Next time you hear an announcement of a new transport infrastructure plan, think about how it will affect surrounding suburbs.

Which areas will become more appealing as a result?

Or better yet, start digging for yourself and find out those plans and projects that other investors won’t know about.


Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Damian Collins


Damian is managing director of Momentum Wealth, a Perth based property investment consultancy firm. A successful property investor in his own right, Damian formed Momentum Wealth to assist time poor investors in building their portfolios and applies his many years of experience to help clients accelerate their wealth creation. Visit

'How important is transport infrastructure for property investors? | Damian Collins' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts