Investing in Sydney’s western growth centres
There’s no two ways about it, Sydney is an expensive city. High demand and limited supply are pushing up property prices, especially in places like the eastern suburbs, inner west and north shore.
Many buyers, including first home owners, are finding it hard to find suitable housing at a price they can afford. Fortunately, relief is being provided by new property growth areas in Sydney’s North West and South West.
Whether you are buying to live or buying to invest, these regions offer a compelling proposition.
Designated by the NSW Government as ‘Growth Centres’, the North West and South West will be developed to meet much of the housing and employment needs of Sydney’s rapidly expanding population.
As part of the Government’s plan, huge investments will be made in infrastructure, public transport links, job creation initiatives and the development of new residential communities.
The areas are expected to be popular with middle-income earners and young families, who will be able to purchase affordable housing supported by schools, services, shops, jobs, leisure facilities, new roads and public transport services.
The Growth Centres have also caught the attention of investors attracted to the population growth profile and the NSW Government’s plans for investment.
There is good potential value for investors because property prices and transaction costs, such as stamp duty, are lower. Combined with strong demand from tenants seeking affordable accommodation, such properties can offer higher rental returns of around five to six per cent.
The Chief Executive Officer of Legacy Property, Matthew Hyder, said the firm’s experience in the North West pointed to strong buyer demand.
“We’ve seen a huge change in Sydney’s North West during recent years driven by a flourishing population. In our experience this is translating into strong absorption levels by both home owners and investors,” he said.
At a glance – the North West Growth Centre
Bounded by Baulkham Hills, Blacktown and the Hawkesbury, the North West Growth Centre will be around 10,000 hectares – about the size of Auckland, New Zealand.
Supported by a major centre at Rouse Hill, it will contain about 70,000 new dwellings for 200,000 people. The region will be made up of 16 ‘Precincts’, which will be progressively released during the course of the next 30 years.
To date, new communities under development include The Ponds, Bunya, Stonecutters Ridge, Greenway and New Rouse Hill. Two new employment centres – Sydney Business Park and Box Hill – have also commenced development.
In addition to the M7 Motorway, the North West Growth Centre will be supported by investment in new roads and the new 23 kilometer North West Rail Link, which will increase the accessibility of the area.
At a glance – the South West Growth Centre
Within the boundaries of Liverpool, Camden and Campbelltown, the South West Growth Centre will be around 17,000 hectares – about the same size as Canberra.
Comprising 18 Precincts and with capacity for around 110,000 new dwellings and about 300,000 people, it will be based around the major centre of Leppington.
The area will benefit from the development of the South West Rail Link and other infrastructure investment.
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