I often warn about the levels of household debts as people have taken on big mortgages to afford high house prices in Sydney and Melbourne, especially.
The good news is that the business sector seems to be slowly coming alive. Government spending is pushing our infrastructure along.
Now, Deloitte Access Economic today has released its report looking for the projects coming ahead.
Its this big lump of projects – billions of dollars’ worth – after the giant LNG projects were finished in WA. Now we had a real drought, you can see this before the period ahead. Now this is over the past three years but this chart shows government funded infrastructure that is coming, mainly for Sydney and Melbourne and mainly paid for by the massive increase in stamp duty states has enjoyed due to the housing boom.
Deloitte says there is $749 billion in projects in the pipeline – provided they all go ahead cause after all, this is government – do remember.
The big ones are the WestConnex to link Sydney’s freeways to Sydney’s Metro and Metro West plus Melbourne North and North East from Ringwood to Greensborough. Now, just on that road – it’s a missing piece in Melbourne’s freeways network. The road was first proposed in and land was set aside back in 1968 – so we’re talking 50 years ago.
In 1968, Melbourne’s population was less than 2 million. It’s now 4.3 million and expected to be above 5 million by 2025.
So, perhaps its high-time this road and these railway projects are built to cope with our growing population.
Money Minute – October 31 2017 More Roads and Rails Coming