North American Bus Boom: Aussie Lessons for Property Investments?

A recent report highlights a projected significant expansion of the North American bus market, driven by electrification initiatives and infrastructure investments. While seemingly removed from the Australian property landscape, the underlying drivers – government policy, infrastructure spending, and changing consumer preferences – offer valuable insights for property professionals down under, particularly in understanding the impact of planning regulations.

North American Market Growth: A Snapshot

According to a report by ResearchAndMarkets.com, the North American bus market is tipped to reach USD 13.16 billion by 2030, boasting a compound annual growth rate (CAGR) of 11.2% from 2025. This growth is largely due to:

• Active electrification of school bus fleets in the US, fuelled by government incentives and private sector initiatives.
• Infrastructure upgrades across the US highway network.
• Electrification of public transport bus fleets by various state governments.
• Increased investment in bus charging infrastructure.
• Development of electric bus fleets by private transit service operators.

Stringent environmental regulations are also playing a key role, with examples such as New York State’s commitment to converting its school bus fleet to 100% electric by 2035.

Planning Regulations and the Australian Property Market: A Parallel

The North American experience underscores the significant influence of planning regulations on infrastructure development and, consequently, property values. In Australia, similar themes are playing out, albeit with unique local nuances.

Federal Level

At the federal level, policies such as the National Urban Policy and infrastructure funding initiatives can indirectly impact property markets. Federal funding for public transport projects can stimulate development around transport nodes, increasing land values and influencing demand for residential and commercial properties. The effectiveness of these policies hinges on their integration with state and local planning schemes.

State Level

State governments wield considerable power over planning regulations, including zoning, building codes, and environmental regulations. For example, NSW’s State Environmental Planning Policies (SEPPs) and Victoria’s Planning and Environment Act 1987 set the framework for land use and development. These policies can significantly impact property values by dictating permissible densities, building heights, and environmental protection measures. Changes to these policies, such as allowing higher density development near transport hubs, can lead to significant property market shifts. As seen in the North American example, state government mandates for things like zero emission by certain years for public transport also influences manufacturers and therefore infrastructure and real-estate needs.

Local Government Level

Local councils are responsible for implementing state planning policies and creating local planning schemes. This includes managing zoning regulations, assessing development applications, and enforcing building codes. Local councils can significantly influence the character and amenity of neighbourhoods, which in turn affects property desirability and values. Restrictive zoning policies can limit development and drive up property prices, while more permissive policies can foster growth and affordability.

Impact on Property Stakeholders

The evolving landscape of planning regulations impacts various stakeholders in the Australian property market in different ways.

Real Estate Agents

Real estate selling agents need to stay abreast of changes to zoning regulations and development approvals in order to accurately market properties and advise clients on potential future development opportunities. Knowledge of upcoming infrastructure projects and their potential impact on property values is also crucial.

Property Managers

Property managers need to understand building codes and regulations to ensure that properties are compliant and safe for tenants. They also need to be aware of any upcoming changes to regulations that may impact property maintenance or upgrade requirements.

Developers

Developers face the most direct impact from planning regulations, as they determine what types of projects are permissible and the conditions under which they can be developed. Navigating the often complex planning approval processes is a critical skill for developers. They need to understand the relevant State Environmental Planning Policies and local council planning schemes, and be able to negotiate effectively with planning authorities.

Investors

Property investors need to carefully consider the potential impact of planning regulations on property values and rental yields. Properties located in areas with favourable zoning regulations and development potential may offer higher returns. Investors also need to be aware of any potential risks associated with changes to regulations that could restrict development or negatively impact property values.

Australian Context: Electrification and Infrastructure

While the North American report focuses on buses, the broader theme of electrification and infrastructure investment resonates in Australia. State governments are increasingly investing in electric buses and charging infrastructure. This could well drive up property value near these stations and through new infrastructure.

Major Australian cities are grappling with similar pressures to improve public transport, reduce emissions, and accommodate growing populations. Developments in energy efficient and environmentally friendly building materials are also becoming more and more attractive to new builds and thus the planning regulations and development applications adapt to this.

Conclusion: Planning for the Future

The North American bus market report serves as a reminder of the powerful influence of government policy and planning regulations on infrastructure and property markets. Australian property professionals need to be proactive in understanding these forces and adapting their strategies accordingly. By staying informed about planning regulations, infrastructure projects, and emerging trends, they can make more informed decisions and capitalise on opportunities in the ever changing Australian property landscape.

Source: Industry research and analysis.

This article is based on a report from au.finance.yahoo.com titled “North America Bus Market to Reach USD 13.16 Billion by 2030 Driven by Electrification Initiatives and Infrastructure Investments”. You can find the original article here: https://au.finance.yahoo.com/news/north-america-bus-market-reach-082400074.html