capitalising on government transport infrastructure ... · cbre research report $41bn of transport...
TRANSCRIPT
Capitalising on Government Transport Infrastructure Investment / Transport Oriented Development
Discussion Points
Major infrastructure initiatives create step change in real estate values
These projects stimulate urban renewal and new greenfield projects
This process supports broader policy objectives in terms of utilisation of public transport and sustainability
The uplift in land value and development activity creates direct and indirect fiscal benefits for Government
Trends in other jurisdictions
CBRE Research Report
$41bn of transport related infrastructure development is planned for this decade
$18bn in transport infrastructure 2000 - 2010 created 26 million sqm of industrial property
QLD and VIC represent 60% of investment with NSW being the “laggard”
“Big Wheels Keep On Turning”by Kevin Stanley, Executive Director
Global Research & Consulting
NSW share of investment in transport infrastructure declining from 18% to 12%... Where to from here?
Changing trends in infrastructure investment from road to rail (11% to 33%) and intermodal links
Increasing focus on non-metropolitan areas, particularly seaports and regional centres(Newcastle, Geelong)
CBRE Research Report“Big Wheels Keep On Turning”
by Kevin Stanley, Executive DirectorGlobal Research & Consulting
Spending on Australian transport infrastructure2000-2020
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
AU$'s
'000,
000
Source: CBRE (August 2011)Note: includes projects most likely to influence the industrial property sector
Forecast
Share of GDP vs share of transport infrastructureinvestment 2000-2020
0
5
10
15
20
25
30
35
40
45
50
Northern Territory Western Australia South Australia New South Wales Victoria Queensland
% s
har
e
Share of projects 2000-2010Share of projects 2011-2020Share of GDP
Source: CBRE (August 2011)Note: includes projects most likely to influence the industrial property sector
Step change in real estate valuesand catalyst for urban renewal
/ greenfields projects
East Perth Redevelopment, Perth (WA)
Whilst not stimulated by transport infrastructure, case study in tracking real estate value changes through major projects
25% impact on values and linear relationship with distance
Resultant fiscal impacts for Government
Rouse Hill Regional Centre (NSW)
Initially delayed pending State Government commitment to upgrade Windsor Road
Premised on rail and bus linkages
Relative success, but constrained by lack of delivery of N-W rail commitment
Eastern Creek / Brickworks, M7
M7 commitment led to opening up vast employment lands
Dramatic impact on industrial land values and development in Eastern Creek
Other traffic benefits from the ring road
Darwin City Waterfront, Darwin (NT)
Obsolete port after relocation of freight activity, cruise ship terminal unsatisfactory
Convention and exhibition centre key catalyst for total precinct redevelopment, including cruise ship terminal
Successful value outcome for NT Government as well as broader policy benefits
RNA Showgrounds, Brisbane (QLD)
Obsolete showgrounds precinct requiring substantial recapitalisation
Major urban renewal initiative linked to public infrastructure, including exhibition facilities and rail services
Stimulating adjacent redevelopment and property values
The Link Project, Perth (WA)
Inner city blighted site, effectively separating the inner city
Existing rail and bus services
Upgrading of rail / bus interchange acting as a catalyst for a major urban renewal mixed use project
Broader Government Policy Objectives
Transport orientated development (TOD)
In most cases T Adjacent D (TAD)
Current trend in Government policy and many case studies from overseas (good and bad)
Typically to achieve increased utilisation of public transport and urban infill policy
Public transport, particularly light/heavy rail used as an instrument of land use planning
Careful not to ‘adopt’ overseas, particularly US models which are based on different financial drivers, tax structures and building codes
Portland, Oregon, US
Fruitvale, California, US
Union Station, Denver, US
Vauban, Freiburg, Germany
Orestad, Copenhagen, Denmark
Conclusion
Governments should take a more holistic view of transport investment and delivery
Development / redevelopment opportunities
Intermodal linkages
Selective land acquisition
Public / private ‘joint ventures’
Direct and indirect fiscal benefits
Public transport patronage
Investment return