With more and more people choosing to fly, and airport traffic around the country on the increase, we can tell you that airports present a great opportunity for long-term investment.
One of the main features of airports is that public transport systems are built to connect them with the CBD. This is because public transport is essential to the functioning of an airport; both for the travellers and the workers filling the huge number of jobs which the airport creates.
In Sydney, we see the establishment of the rail line through Green Square to Mascot, and the subsequent high density development which is following the rail route.
At Melbourne’s airport there is no rail link yet in place, but there is a proposed one, and similar sets of impacts will emerge to those experienced in Sydney. As that public transport is put into place, there will be an increase in development density along the line which is planned to go from the airport into Sunshine and through western Melbourne to the CBD.
Perth airport has a new rail line being built which will terminate at Forest Field on the eastern side of the airport. The intervening stretch to the Perth CBD is quite under-developed. Once you move through Burswood along the Great Eastern Highway corridor there is a significant amount of industrial land which will eventually become residential.
Even a quick look at the corridor now shows high density residential dwellings are already moving along that space. The airport itself is forecast to have a significant amount of retail and commercial space attached to the terminal, so near that area would be a good place to look for investment properties.
In addition to the main capital city airports, several regional airports have strong potential and are currently under-invested. Gold Coast airport is showing strong growth in passenger numbers and has significant residential potential relatively close by, whether it is in Tugun or Coolangatta. Be aware that there are proposals to connect the airport, either by light or heavy rail, into Brisbane. Airports bring the infrastructure with them, allowing development to flourish in the wake.
In Western Sydney, there is a proposed airport which has spent many years on the drawing board. It’s difficult to see where the accompanying infrastructure will go, but it’s worth taking the time to work through the plans because by 2026, there will be 5 million passengers going through that airport every year, and this will continue to grow.
Remember, it’s not just residential investment you should be looking at. There is a broad range of predictable uses, such as car rental and smash repairs all the way through to freight forwarding. These are business which don’t wholly depend on airports but like to be close to them.
About the author:
Brian Haratsis is MacroPlan’s Founder and Executive Chairman. Brian is an economist and future strategist with over 30 years experience as an advisor to governments and major corporate clients throughout Australia and New Zealand. For more information or to discuss your property research requirements, please contact Amy Williams on 02 9221 5211 or firstname.lastname@example.org.