I'm having trouble finding any background research on the nature of
govenment spending on public works infrastructure etc, and its
relation to private property prices, I am particularly interested in
australian examples. This is a part of a background literature report
for my thesis, but i need a lead into this area.
Any documents need to be of a scholarly nature.

HI, 
This is not scholarly and goes back a long way, but in the early 1970s
in Sydney area, I heard that development zoning for properties along
roads that were improved for more through traffic was changed to allow
other or greater use as a compensation for the negative effect of the
greater traffic.
"Other or greater use":  commercial vs previous residential, strata
(condominium) vs rental, higher construction.   I was living in Mosman
at the time.
That had no doubt some influence on private property prices (+ - ?).

I hope this can be of some help.