Budget boost for Melbourne rail
The Coalition’s commitment to the Monash Employment Centre's rail connection and Frankston to Baxter upgrade is set to improve commuting times and reliability around the city's south-east, real estate group LJ Hooker said.
The $475 million for planning and pre-construction of the rail connection to the Monash Employment Centre and the $225 million electrification upgrade for Frankston to Baxter could underpin sales activity for surrounding neighbourhoods as buyers and investors look to get in on the ground floor, LJ Hooker Hooker’s Head of Research Mathew Tiller said.
“The Monash Employment Centre rail connection intends to improve travel times for those travelling from the CBD, but it’s also going to provide greater certainty to those residing around the periphery of the jobs hub to access the city,” said Mr Tiller.
“The commitment brings suburbs like Clayton and Springvale closer to the CBD.”
CoreLogic statistics to the end of January show both Clayton and Springvale have been stand-out performers in the area.
“It will be interesting to see how the announcements impact marketplace for the suburbs: Clayton’s median house price grew exponentially to $1,218,888 in the 12 months to January, while the more affordable Springvale recorded a median of $760,000, which was still an improvement of 10.1 per cent.
“As the population growth of our major cities aggravates congestion, providing greater access to public transport helps deliver tangible value to property owners.”
The Frankston-Baxter rail electrification is also set to further propel the local property markets.
CoreLogic data indicates the market had responded to Frankston’s affordability in the 12 months to January, with the median house price rising a significant 25 per cent to $600,000.
Baxter has enjoyed the market’s love affair with the Mornington Peninsula, with the media house price rising in the smaller locale by 31 per cent to $530,000.
Elsewhere in the Budget, the Government’s seven-year personal income tax policy will assist mortgage holders and tenants in their only expenditures, as well as with the cost of living.
“This comes a crucial time with the improving economic outlook likely to see interest rates rise sometime in the next couple of years,” said Mr Tiller.
Additionally, LJ Hooker welcomed the Coalition’s commitment to retain current negative gearing allowances in their current form.
“Previous analysis of landlords for whom LJ Hooker manages their investments showed 37 per cent have a household income below $100,000 while 67 per cent had household earnings below $150,000.
“Negative gearing is not a concession reserved for the well-heeled. Property is an important wealth accumulation tool for many people and negative gearing contributes significantly to the economy through the employment of tradespeople for investment maintenance and repairs, strata and property managers, accountants and countless others directly and indirectly employed in the property sector.”