Infrastructure 2025

Australia’s infrastructure spend (national and state) is ~$100bn pa and has more than doubled over the past decade.  Some of the biggest increases, in dollar terms, have been in Victoria from ~$5bn to $24bn and NSW from $15bn to $31bn.  Population growth and aging infrastructure are contributing to the step-up in investment. 

Current estimates suggest investment is close to peak-levels and could fall 18% over the next three years. But this would still be nearly 80% higher than previous decade and recent anecdotes suggest project costs for future delivery could be revised higher.

In real estate, Logistics and Apartments are likely to be two largest beneficiaries of this investment.  Our detailed scans show that Airport, Rail and Road transport sectors account for the majority of recent large investments. The other large infrastructure buckets include Health precincts, AUKUS, Brisbane Olympics and energy transition.