When investing in property, one of the key things every savvy investor looks at is upcoming infrastructure in the area and the potential growth those plans can bring to your property.
Sydney is undergoing an unprecedented infrastructure boom, with the NSW Government pumping in billions of dollars into the state to close the major gap in fundamental facilities.
And what’s more, as Sydney’s population balloons, government spending on infrastructure will only go up to meet the pressures and challenges of growth.
To get you up to speed with the major infrastructure plans in the Harbour City, here’s a roundup of the big-ticket items across the city, which, according to property valuer firm Herron Todd White, will help boost prices in the suburbs that have access to the new services.
One of the biggest and most talked about pieces of infrastructure in Sydney is no doubt the Badgerys Creek Airport and surrounding Western Sydney Aerotropolis. The mega project is set to transform the rural suburbs of Badgerys Creek, Luddenham, Kemps Creek and other nearby areas into a thriving economic hub with universities, research hubs, office complexes, retail centres and apartments.
NSW Premier Gladys Berejiklian wants to model the western Sydney airport city on Seoul’s Incheon aerotropolis, which is home to 75 multinational companies and hundreds of thousands of residents. More than 50 per cent of the population of greater Sydney is expected to live in western Sydney by 2036, so this is an area that investors big and small are eyeing.
Interest in the property market in Pyrmont and surrounding area is picking up after weak performance in 2018, Herron Todd White wrote. This is thanks to plans to redevelop and relocate the Sydney Fish Market to Blackwattle Bay, about 400m away from the current location. The NSW Government has allocated $750 million for the project, which includes a new market building, a waterfront promenade, ferry wharf and other facilities. The new site has been proposed to be developed on 95ha of predominantly government-owned land.
Nearby, Mirvac has lodged plans to redevelop the Harbourside Shopping Centre in Darling Harbour into a mixed-use complex with offices and luxury apartments. It forms part of the plans to rejuvenate the harbourside precinct and boost its tourism and entertainment facilities.
In Surry Hills, the recent completion and opening of the new light rail has provided better access to public transport in the inner-city area. This makes Surry Hills “one to watch this year”, according to Herron Todd White. The new piece of infrastructure could boost prices in the suburb, the firm said, and that growth could also flow on to the surrounding areas of Darlinghurst and Redfern.
With light rail services now running between Circular Quay and Randwick, the eastern suburbs of Randwick, Kensington and Kingsford are expected to benefit from the new transport links. While the Randwick section of the network opened in December 2019, the Kingsford section is slated to open in March 2020. The new light rail will improve access to Moore Park, UNSW and the hospitals in the Randwick area. Experts at Herron Todd White believe buyers priced out of the more expensive Randwick and Kensington are likely to consider Kingsford as an alternative once the new section of the light rail opens.
Approved in early 2015, the $3 billion NorthConnex project is scheduled to be completed later this year. The 9km twin tunnel will link the M1 Pacific Motorway at Wahroonga to the Hills M2 Motorway at West Pennant Hills, sending about 5000 trucks and buses a day off Pennant Hills Road into NorthConnex.
Mount Colah, Berowra and Mount Kuring-gai are the main suburbs tipped to see property price growth in the next few years thanks to NorthConnex, according to Herron Todd White. This is because commute times from these suburbs to the CBD and the M2 motorway will be cut significantly when the tunnel opens.