The city of Newcastle could be set for an urban transport makeover, according to this week's NSW budget announcement.
In his budget speech on June 18, NSW treasurer and minister for industrial relations Mike Baird revealed that the government had plans to lease out the Port of Newcastle on a long-term basis.
As a result, more than $300 million of the proceeds would be earmarked for "the revitalisation of Newcastle".
"This will be more than a revitalisation: it will be the reinvention of Newcastle as a modern city," said Mr Baird.
He said that heavy rail between Wickham and Newcastle would be replaced by light rail, opening the harbour up to the public and possibly heralding a new era of public transport for the city.
"Subject to the completion of a business case, this will form the beginning of a light rail service linking the Newcastle CBD with surrounding suburbs."
The Property Council of Australia PCA said that this plan to renew the CBD would be "a win-win" for Newcastle.
"We've got the trifecta - a city reconnected to its beautiful harbour, a responsive planning regime and now a light rail system that will stamp Newcastle as a modern city," said NSW regional director of the PCA Andrew Fletcher in a statement.
Mr Fletcher said installing and then expanding a light rail system would not only be more compatible with the city's broader plans for renewal, but it would also help to end the debate about how to get people into the CBD.
"Turbo-charging the transport solution will sustain the city for decades to come and make Newcastle a magnet for further investment."
Joining the Property Council in welcoming the budget announcement, Hunter Development Corporation chairman Paul Broad said that it would be "a game changer" for Newcastle.
"This level of funding enables Newcastle to aim higher and get moving on delivering an even brighter future for the city centre," Mr Broad said.
"The commitment to studying the potential of extending a light rail service from Wickham to a larger network is an exciting prospect."
Property investors will likely be watching closely for any future light rail developments in the city.
These may help to link peripheral residential areas more efficiently with job centres like the CBD, making properties in these locations more appealing in the eyes of renters and buyers.
