Land value growth could support east coast high-speed rail, UNSW reports

Land value growth could be used to fund the proposed high-speed rail network on the east coast of Australia, UNSW research shows.

Growth in land value and property prices around stations could be used to fund the proposed high-speed rail network on the east coast of Australia, a new report by UNSW suggests.

High-speed rail in Australia has been under investigation since the early 1980s. Every Federal Government since this time has investigated the feasibility of constructing high-speed rail with speeds above 200 km/h, but to date nothing has ever gone beyond the detailed planning stage.

The Federal Government currently has a $15 million ongoing strategic business case for “faster rail” between Sydney and Newcastle as part of the Faster Rail Plan. The “faster rail” refers to upgrading existing rail infrastructure to support speeds below 200 km/hour.

The High-Speed Rail Value Uplift: Preliminary Investigation Report, released this week from the UNSW City Futures Research Centre, is based on a proposed high-speed rail that would run along the East Coast from Melbourne to Brisbane, with stops in Canberra, Sydney and regional centres. The rail network would aim to provide travel across the country at speeds of up to 350km/h.

According to report estimates, the land surrounding a number of stations along the proposed HSR line on the east coast would experience a significant value increase – between $48 billion to $140 billion, in the population growth scenarios used in the report.

The projections are based on improved accessibility to the CBD from these suburbs, as well as planning-related value uplift from land rezoned to residential use around the stations.

The research was conducted by Professor Christopher Pettit, Director of UNSW City Futures Research Centre alongside postgraduate researchers Will Thackway and Reg Wade. Professor Pettit says the research helped to explore chances for further infrastructure improvements.

“We’ve put together this report for policymakers and decision-makers to explore these growth scenarios and make informed decisions based on big data and analytics,” Prof. Pettit says.

“There are a lot of opportunities around the HSR for Australia to build stronger connectivity between cities and inject significant wealth and job opportunities into the regions. The numbers in the report confirm and help quantify that considerable potential.”

The report also recommends that further research be conducted into the use of value uplift financial instruments, the formulation of a national settlement plan, and creating a national cities institute to ensure the maximum benefits realisation of an HSR network across Australia.

Such initiatives would assist the nation in significantly reducing emissions in the long term and go a long way to ensuring liveable, sustainable, productive, and resilient cities are planned along the HSR, Prof. Pettit says.

“Australia is in an excellent position to capitalise on this infrastructure that would be transformational for the nation,” Prof. Pettit says. “If Government were to make a significant investment into the HSR, it would show strong leadership and vision and set up future generations of Australia into 2060 and beyond.”

*Sections of this article were extracted from an article published on UNSW website. Read the full article here.