Get ready! The Australian infrastructure frenzy is coming!
The newly released federal budget, subsidies, tax cuts, all kinds of big money, especially in infrastructure, will add an unprecedented huge expenditure of 17.9 billion Australian dollars. So far, the total amount of Australia's entire infrastructure plan will exceed 120 billion Australian dollars!
It is foreseeable that a large number of infrastructure projects will be launched in the next few years, and the infrastructure boom will continue to sweep across Australia.
However, when it comes to infrastructure, you may think that it is just a tool for politicians to make political achievements and vote, or an investment game for the super rich.
Actually not. In the Australian infrastructure frenzy, ordinary people also have the opportunity to eat dividends!
Who is the biggest winner?
Let's first take a look at how the huge infrastructure investment of 17.9 billion Australian dollars in the new financial year will be distributed. Which state is the biggest winner?
$3.3 billion in NSW, mainly including:
$1 billion for 10km of new track, rail bridges and stations between Tuggerah South and Wyong to shorten Sydney to Newcastle commutes;
$336 million to upgrade the Pacific Highway on the Central Coast;
$226.4 million for the Newell Highway north of Moree, the business case for Sydney Metro Stage 2 at Western Sydney Airport, and flood evacuation road restoration plans;
$232.5 million for the second stage upgrade of Mulgoa Road.
Victoria's $3.3 billion, mainly including:
$1.2 billion for Beveridge's cargo terminal and $280 million for surrounding road connections;
740 million for the cargo terminal at Truganina and 920 million for the rail connection to the terminal;
$960 million for the construction of the southern line of the Greater Melbourne Rail Link.
Queensland $3.9 billion, mainly including:
$2.7 billion for fast rail projects from Brisbane to the Sunshine Coast and Brisbane to the Gold Coast;
$190.5 million to build a new Green Bridge linking Kangaroo Island to the CBD;
$101.7 million for local roads and community infrastructure;
A series of renovations and upgrades related to the Olympic Games, such as the new Gabba Stadium and the new Woolloongabba Metro Station.
Western Australia $2.3 billion, mainly including:
$440 million for the Metronet rail project;
$678 million to upgrade the Queensland inland road via the Northern Territory to Western Australia.
A$2.9 billion in South Australia, mainly including:
$2.3 billion for the North-South Corridor - Darlington to Anzac Road
Tasmania, the Northern Territory and the ACT will receive A$660 million, A$538.7 million and A$59.5 million respectively for local road construction and upgrading.
In addition, in terms of energy, about 440 million Australian dollars will be injected into power facilities in the next five years to reduce electricity prices; in terms of medical care, there will be cooperation with Moderna to produce mRNA vaccines and the establishment of a comprehensive cancer center in Perth.
Undoubtedly, thanks to the successful bid to host the 2032 Olympic Games, Queensland and Brisbane will become the biggest winners of Australian infrastructure!
Australian infrastructure, capital "darling"
When it comes to infrastructure, most people think of roads, railways, tunnels and other "real bricks and tiles". In fact, infrastructure is a big concept, not only including transportation infrastructure, but also energy, security systems, medical, educational, cultural and leisure facilities, as well as modern high-tech infrastructure such as 5G and smart cities.
Whether it is based on the huge demand for infrastructure from Australia's population growth, the need to stimulate the economy and stimulate employment in the "post-epidemic era", and the government's commitment to reducing emissions and developing new energy, it is foreseeable that Australia will continue to increase its investment in infrastructure in the future. investment.
And, no matter which political party comes to power, infrastructure must be the highlight!
Based on this, the Australian infrastructure field has also become a hot spot for international capital to pursue, especially since the epidemic, a large number of domestic and international capital have set foot in Australian infrastructure investment.
For example, AustralianSuper, Australia's largest pension fund, is very keen on Australian infrastructure projects. It first increased its stake in Sydney toll road WestConnex last year, then bought a 70% stake in the Optus communications tower for $19 billion, and also participated in the acquisition of Sydney Airport.
The Netherlands, Canada and the United States private equity funds are favored by the Australian grid field. For example, in February this year, Canadian asset management giant Brookfield and Australian billionaire Mike Cannon Brookes planned to jointly acquire Australian power generation giant AGL.
Ordinary people have a chance
So, in the Australian infrastructure frenzy, for ordinary people, in addition to the possibility of a more convenient life in the future, what dividends are there to eat?
Employment
The budget shows that expanding infrastructure will create more than 120,000 jobs in Australia. But the problem is that there is currently a serious talent shortage in the infrastructure sector.
The infrastructure sector is projected to have a shortage of 70,000 engineers, 19,000 project management professionals and 28,000 skilled workers between now and 2025 when demand peaks.
The shortage of talents and labor is a crisis for the Australian infrastructure sector, but it is an opportunity for ordinary people, especially new immigrants.
In addition, salaries in the infrastructure industry are also quite impressive. For example, graduates majoring in civil engineering have a starting salary of more than 60,000 to 80,000. The annual salary of a general mechanic can also reach about 80,000 Australian dollars. If it is promoted to a management position, there is still a lot of room for salary improvement.
Real estate
Most people must know the relationship between housing prices and infrastructure.
When the government pours more and more funds into infrastructure projects, it means that the land value and property value of the area are also getting higher and higher.
With the gradual improvement of infrastructure, the corresponding real estate value will also usher in a period of full realization, thus, housing prices will continue to rise. Property investors can focus on the government's infrastructure construction plans.
Financial market
In fact, infrastructure is not just an "investment game" that can only be played by the super-rich and institutional investors. Individual investors also have the opportunity to get involved.
For example, the Australian government's large-scale infrastructure construction will inevitably have a positive impact on Australian infrastructure stocks.
If you choose listed investment, you can pay attention to listed companies in Australian infrastructure, including building materials, water grids, Internet of Things, etc., especially in the fields of power and energy infrastructure.
In addition, infrastructure funds are an easy way for individual investors to invest in international listed and unlisted infrastructure assets.
Finally
Compared with other business fields, infrastructure assets are less affected by economic fluctuations, face less competitive pressure, and usually can obtain stable and considerable returns, so they are regarded as the best choice for long-term investment, especially in volatile markets. background.
Since the beginning of this year, the global economic situation has fluctuated, and the future is full of uncertainties. In Australia's case, inflation is already at its highest level in five years and a rate hike is imminent.
And the most popular investment field in the past two years - real estate is very likely to show a cooling trend. Then, for individual investors, it is time to re-examine where there are investment opportunities and where should the funds flow!
