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Australian Conveyancer – May 2026. Words by Sam McKeith

Bypass boom or bust: It depends on the town

Streamlined road infrastructure typically improves liveability and property appeal, though long-term market strength is not always guaranteed

Nat Gordon, principal of property consultancy Propoholic, cautions the impact of highway bypasses on property markets varies from town to town.

Hence, buyers should assess the impact when looking at local infrastructure pre-purchase.

“A bypass will reduce road and foot traffic and noise through a town centre. That often improves liveability and appeal for owner-occupiers and investors. However, it can also have negative impacts,” Gordon told AC.

“If major gentrification of an area is undertaken as part of the bypass project, this will naturally improve the market appeal of the township as a whole.

“If a bypass enhances connectivity to employment hubs while improving local liveability, prices will usually strengthen. If it diverts trade without the town having an alternate economic driver, demand can soften.”

She points, for instance, to some bypassed towns, such as Coffs Harbour on the NSW mid-north coast, being primarily driven by tourism.

In these cases, a bypass may detrimentally impact business and employment, but it may also boost desirability for tourists due to decreased congestion. Such “lifestyle markets” with established tourism appeal, strong schooling or coastal access are generally more price resilient.

By contrast, towns such as Hexham, in the NSW Hunter region, are close to hubs of industry meaning the bypass could help increase regional productivity, while denting the town.

“Towns heavily dependent on highway trade, such as fuel stops and convenience retail, may experience an economic decline if they do not adapt,” she said.

At all times, Gordon said a key consideration needs to be whether the bypassed town has a distinct reason for people to stop, not just pass through.

“A great example of this is Berry, which is a historic lifestyle town in its own right. The bypass has been beneficial for Berry and its surrounding areas,” Gordon said, referring to the town in NSW’s Southern Highlands region.

On property, the short-term impact is that prices “generally stagnate” due to uncertainty.

“In that period, sellers will seek to gain an understanding of the effects. This will usually decrease supply. Demand from buyers may decrease but could also increase due to the perception created by the announcement,” she said.

Subsequently, the nature of the town comes into play and impacts values differently.

“If the bypass shifts the town from a traffic corridor to a lifestyle or destination market, that can be positive for long-term capital stability and growth. If it exposes a fragile local economy, the risk profile increases,” she said.

“While infrastructure and town planning principles can alter the dynamics of an area, it will generally serve to amplify the underlying fundamentals of a town rather than completely changing property markets.”