The 2021 census reported that the Greater Sydney region is now home to 5.23 million people, a rapid increase from the 4 million recorded in 2011. Therefore, public infrastructure has required significant investment over the last decade. These projects aim to accommodate the current growth and provide support for future development. Two of the largest and most significant projects in Sydney include WestConnex & the Sydney Metro Rail. They provide a prime opportunity for developers, who can capitalise on the modified zoning and increased density of the surrounding land to bring additional value to the region. However, increased development leads to competitive contracts, delays, and extended budgets for projects. Developers can liaise with a Sydney quantity surveyor to organise reports for all new projects to save time and money and help set up tax depreciation schedules for builds. Ensuring your business or organisation is spending money appropriately and effectively.
WestConnex
WestConnex involves the construction and upgrade of a series of motorway systems connecting the inner city and CBD area of Sydney to areas of the Western suburbs, whilst bypassing the inner west. The roads are mostly underground and cover a length of 33km. The project business case described the capability of the system to ‘enable an extra 45000 road trips per weekday,’ however, WestConnex has been criticized for its capability to reduce traffic congestion. Primary benefits of WestConnex include the smooth transport of truck freight bypassing the inner suburbs, and the removal of large vehicles on residential roads.
From a real estate development perspective, freeways don’t provide a great opportunity to increase density in a surrounding area, as more development will inevitably lead to more traffic. However, they can provide an opportunity for increased commercial and some industrial development within areas close to freeway exits due to the easy transport of good long distances along the freeway. Trucks and logistic vehicles will have improved transport and delivery to and from the CBD and inner suburbs to more key locations in the western suburbs.
The first two motorways in the series – the M4 / M4 East, and the M8 motorway were completed and opened to the public in 2019 and 2020 respectively. Meanwhile, the remaining tunnels (stage 3) are expected to open in 2023. This involves a tunnel linking the M4 & M8 as well as a new ‘Rozelle interchange’ with connections to the Anzac Bridge.
Metro Rail Project
Sydney Metro describes itself as ‘Australia’s biggest public transport project.’ It is a mass rapid transit project, with automated, driverless trains running on a ‘turn up and go’ timetable across 113km of metro rail track. 4 lines have been completed or are under construction, with more proposals slated for future development. The 4 lines will have a total of 46 stations.
The first Stage – Metro NorthWest finished construction in 2019 and connects Tallawong to Chatswood station. The next stage, City & southwest, will connect the existing Northwest line from Chatswood to the Central station in Sydney CBD, and out to Bankstown. Sydney Metro West will connect Central station to the Parramatta CBD as a part of Sydney’s ‘metropolis of three cities’ plan. The final stage will connect the new Western Sydney International Airport to St Mary’s station.
Given the integration to the existing Sydney rail and PT network, the new metro rail project will provide extensive opportunities for the real estate and private sectors to build transit-oriented development. Increased transit capacity to key locations in and from these areas will mean more opportunities for mid-high-density developments and subdivisions of land. Areas within walking distance of train stations have historically led to higher land values and provided good business opportunities for the commercial sector.
Inflation setbacks and Sydney Quantity Surveyors
Due to inflation pressures, the increased cost of construction materials as well as a variety of other setbacks and factors throughout 2020, large infrastructure projects such as these often exceed their original budget estimates. To compensate for the increased costs, governments will need to increase tax base revenue to make the business case viable. As mentioned, this usually includes modifying zoning laws to allow for higher-density builds and allowing the private sector to build projects that increase the land value surrounding the project. This generates more profit, leading to more tax. Private sector project managers can utilise a Sydney quantity surveyor to help with tax depreciation and organise cost analysis to ensure their project remains on time and on budget.
Do you need a Sydney Quantity Surveyor for your development?
At Section 94, our team of highly qualified Sydney quantity surveyors can help organise all the required and recommended quantity surveyor reports for your developments. Whether it involves tax depreciation schedules, cost estimates, progress claims, timeline organisation, or Section 94 contributions. There is no point wasting time and money on your development, organise a quantity surveyor report today.
With over a decade of industry experience, our qualified building quantity surveyors are AIQS certified with a fast turnaround time and clear communication. Give us a call today at 0413 953 869 or email us at info@section94.com.au to discuss our quality budget services for residential and commercial builds.