Australia’s $368 billion AUKUS submarine contract is a massive project that will greatly impact the property markets in Adelaide, Perth, and Port Kembla.
These three cities are home to the shipyards and naval bases that will be used to build and maintain the new submarines.
The project is expected to create thousands of jobs and bring billions of dollars to the local economies.
This will lead to an increase in demand for housing, which could push up property prices and rents.
However, there is also a concern that the project could lead to a rental crisis in these cities.
The influx of workers could quickly outstrip the available supply of rental housing, making it difficult for people to find affordable places to live.
The Australian government is working on plans to address the rental crisis. One option is to invest in new housing developments in the affected areas.
Another option is to provide financial assistance to renters who are struggling to make ends meet.
Adelaide is seeing major developments.
The Osborne Naval Yard in Adelaide will become a hub for submarine manufacturing, with a $2 billion investment tripling its size.
The expansion is expected to create more than 8,000 jobs in South Australia over the next 30 years and contribute $200 billion to the state’s economy.
Local property experts are expecting housing demand to increase around Osborne, with suburbs such as Port Adelaide, West Lakes, Kilburn, and Mawson Lakes seeing the biggest impact. This increased demand could boost property prices and competition results in rent.
Perth prepares for base expansion.
Western Australia’s HMAS Stirling Naval Base on Garden Island will undergo an $8 billion expansion to serve new submarines.
The project will create 3,000 jobs and support an additional 500 activities during construction.
The Rockingham, Safety Bay, Waikiki, Shoalwater, and Baldivis communities are forecasted to benefit from the influx of workers.
But as with Adelaide, rents in these areas are already tight, with vacancy rates of less than 1%.
This situation is likely to worsen as housing demand increases.
Port Kembla east coast submarine port
The exact location of the east coast submarine base remains undecided, but Port Kembla in Wollongong is leading the way.
The existing deepwater port and industrial infrastructure make it an ideal location.
The new site at Port Kembla will bring significant employment opportunities and economic benefits to the Illawarra region.
However, some residents are raising concerns about the environment and the potential damage to their neighbourhoods.
Rent Crisis
The positive economic impact of the AUKUS deal comes with a potential problem.
Rising housing shortages in the affected areas. Already robust rental markets in Adelaide, Perth and Port Kembla could become more competitive, leading to higher rents and lower vacancies.
To meet this challenge, increased investment in new housing developments, especially high-density housing, is critical.
In addition, new shops, cafes, parks and transport facilities will be needed to support the growing population.
Balancing opportunity and challenge
The AUKUS submarine contract is an important step with far-reaching consequences. While it offers attractive economic opportunities for Adelaide, Perth, and Port Kembla, it highlights the need for careful planning and investment to ensure everyone shares the benefits and minimises potential pitfalls, such as the rental crisis. By taking immediate action, Australia can ensure that the AUKUS treaty delivers on its commitment to prosperity while protecting the interests of its communities.
Conclusion
In conclusion, Australia’s $368 billion submarine deal is a source of prosperity and a harbinger of housing woes. While the economic benefits of Adelaide, Perth and Port Kembla are undeniable, with thousands of jobs and increased local activity, the potential for a crippling rental crisis is substantial and essentially depends on prompt planning and strategic investment.
Increased mass housing, robust infrastructure development, and community engagement are essential to ensure that the benefits of the deal are both shared and its challenges are addressed head-on.
Only by navigating this challenging terrain with insight and agility can Australia turn the AUKUS agreement into a real success, leaving a legacy of sustainable economic growth alongside prosperous communities.