How will the rail metro tunnel impact property price growth?

Having dealt with road closures, disruptive civil works, bus replacements on train services and a huge trade shortage since the project commenced in 2017, Melburnians can look forward to some positive changes next year.

The Metro Tunnel consists of twin tunnels, 9km long, connecting South Kensington in Melbourne’s west with South Yarra, in Melbourne’s south east. In light of our enormous population forecast, the metro tunnel’s aim is to offer more services and to lighten the load that our existing Loop Tunnel currently experiences. The Loop is now 45 years old and our city’s population has near-on doubled in this time.

With new signalling technology, the train frequency is set to cater to travellers with a ‘turn up and go’ service. Trains will be as fast as two minutes apart for commuters during peak.

This will certainly alter the appeal of rail transport for Melburnians, but the big win will be for those who benefit from a new station in their neighbourhood.

There are five new stations currently being constructed. While Town Hall and State Library are close by to the existing city stations, it’s the other three that will positively impact values for owners. Arden is more conveniently located for travellers who live in North Melbourne. The existing station is quite a hike from bustling Arden Street, and Arden is a new urban renewal project that will be home to some 15,000 residents.

Not only the Arden passengers will reap the travel rewards of this new station, but travellers from nearby Kensington will enjoy more commuting options, faster train journeys around town, and more frequent services.

I’ve maintained that Footscray and Kensington residents will be key beneficiaries of this new tunnel.

In fact, both the Sunbury line and Cranbourne/Pakenham line travellers will enjoy the benefits of the rail system too, given it is the Sunbury line that is connecting with the Pakenham line and by-passing the existing Loop network. These are currently two of our busiest lines in the entire network.

Those who live within walking distance to a train station along either of these lines can anticipate a capital growth uplift. Convenience and amenity counts for a lot, and train patrons value the option of a short walk to their local station. They are prepared to pay extra for it.

Focusing on the other two new stations, Parkville and Anzac is important too. Hospital workers, university students and employees who work in the northern part of our city will enjoy train access to these areas that were otherwise only serviced by trams and buses. But Parkville, Carlton, Carlton North and Princess Hill residents will have their own train station, easily accessible for many with trams still integrating their travel.

Anzac Station is going to be the new ‘local’ station for so many high rise residents along St Kilda Road and nearby precincts. St Kilda Road is home to around 10,000 residents and even has it’s own postcode, 3004. No longer will these commuters have a slow journey along St Kilda Road on a tram, but they’ll have the option of a faster ride into town and beyond. What’s more, travellers who work in some of these towers who have previously driven to work will be able to ditch the car and manage a smoother commute.

Our train patronage is projected to increase markedly once the Metro Tunnel project is opened, and many home buyers will add ‘proximity to rail’ to their list of criteria.

We value our own time, and this directly applies to commute times. If daily rail travel is faster than road travel, people will vote with their feet. This, in turn will have a direct impact on high-amenity house prices.