Parramatta developments: Uncoiling a new economy
This Sydney suburb is a perfect representation of what a dynamic, thriving city should be. Hosting a combination of natural and manmade attractions, as well as the balance between a rich history and heritage.
These characteristics of the city make it a very desirable option for investors. Whether considering a new investment or a potential development project, Parramatta presents many opportunities.
Over the next few years, Parramatta is set to continue evolving into a mega-city. Councils and developers at large are accelerating the city’s economy, committing to improvements across:
- Transport and infrastructure
- Social and communal initiatives
- Residential and commercial developments
“The City of Parramatta area contains a $23 billion economy” PWC, 2016
However, it does not end there. Multiple efforts are being made in and around the Parramatta municipality that are adding to the agenda of an economic “evolution” in the near future. The following projects are a list of diverse public and private infrastructure that are fuelling the city’s prosperity:
- Western Sydney Stadium (completed)
- WestConnex, Stage 1 (completed)
- Westmead Redevelopment (believed to add 6,000 new jobs in the area by 2021)
- Parramatta Square (expected completion 2021)
- Museum of Applied Arts and Sciences (expected completion by 2022)
- Parramatta Light Rail (expected completion by 2023)
- Western Sydney Airport (expected completion by 2025)
- Residential developments (an estimated 1,478 extra dwellings will be built on average each year between now and 2021) and Commercial developments (Parramatta’s commercial floor space will expand by 232,000 square metres or 34 per cent by 2021)
Parramatta developments: area of commercial, cultural and educational growth
Business and Commercial
Parramatta has become the geographical, commercial and cultural capital of Western Sydney. It is the second largest CBD in Sydney and has placed itself in sixth position in the country. This area has become a large provider for a range of business and government services.
By 2021, an estimated 22,000 additional people will be working in Parramatta, totalling 186,000 (14 per cent growth) (PWC, 2016)
Parramatta also assists the civic and administration centre of Western Sydney being host to:
- NSW Police Force Headquarters
- Sydney Water Corporation Headquarters
- NSW Department of Attorney General and Justice Headquarters
- Parramatta Justice Precinct
This city also poses many natural benefits adding to the wealth and beauty of the suburb. These assets include the beautiful riverbank links Parramatta to Sydney CBD.
Parramatta Park is also a key natural hotspot for the area, serving as an important cultural centre for the community, encouraging the union of family and friends with a range of events hosted there every year.
Culture and social infrastructure
With a diverse culture and accepting community, Parramatta is home to over 18,000 migrants. The diversity of culture within the city encourages the community to host a range of multi-cultural events throughout the year including:
- Lunar New Year
As well as other sporting and leisurely attractions including:
- ANZ Stadium
- Pirtek Stadium
- The Riverside Theatres
With over nine university campuses and colleges, this city is host to one of Australia’s most diverse educational, health and research facilities – Westmead Hospital.
“Over the next five years, more than $10 billion will be invested in constructing roads, light rail, schools, hospitals, universities, offices, shops, accommodation, a museum, a sports stadium, and new public spaces.” (PWC, 2016)
Parramatta has become a central area in Sydney. Becoming an easily reached location for many across the city due to the growth and enhancement of transport options and facilities.
Re-establishing Parramatta, the city aims to make itself the upcoming highlight CBD, which is slowly becoming a reality. With the growth in investment and infrastructure, the city has boomed into a vibrant area and one which is becoming increasingly sought after.
With over 1 million of Sydney’s workforce living within 45 minutes’ travel of Parramatta, the city is seen to see a significant increase in residential developments. This evolution of being both a commercial and residential hub is also going to increase the demand for retail spaces, cafes, bars and entertainment precincts.
“In Parramatta, the health, government and financial service industries will generate 72 per cent of all employment growth (16,000 jobs), 60 per cent of all output growth ($3.5 billion) and 68 per cent of the new economic returns ($2.1 billion).” (PWC, 2016)
Should I consider purchasing an off-the-plan apartment in Sydney?
With borrowing capacity and drastic price drops in the property market, restrictions are impacting the amount spent on residential properties. It comes down to the simplicity of this statement: investor confidence is low.
Despite this lack of confidence, there is also an upside. Low prices, restricted borrowing capacities, and price falls means that there is a slight increase in affordability amongst less competitive buyers.
Parramatta’s surge in residential developments over the last 2 years is a product of its increasing demographic. Apartments are no exception to this expansion.
With the aforementioned growth and projected plans in infrastructure, jobs and educational facilities, it has become the ultimate location for singles, couples and families.
Buying an off-the-plan apartment is a great way of stepping into the market as it allows you to prepare yourself financially, with the requirement of only a 10% deposit in most instances. The advantage of these types of properties allows you to save while the property is being built.
This is especially advantageous for couples or first-time buyers who are fresh into the market and need the time to plan and prepare for the future.
Off-the-plan apartments can also have the advantage of the value of the property increasing, with the asset of locking in the purchase price from the moment the contract is signed. The property may increase in value by the time the property reaches its final phases of completion, already making a return on investment.
Off-the-plan apartments in Sydney are also usually at a much lower price point as buyers are always willing to pay more for tangible properties they can see in person – properties they can see first hand.
Nonetheless, although lower in price, it does not discount the height of investing in an off-the-plan apartment in the thriving city of Parramatta.
A 5-Step Guide to Buying an Off-The-Plan Apartment:
There is something extremely risky about making the decision to invest in a property you’ve yet to see in reality. However, thousands of Australians purchase off-the-plan properties in Sydney each year.
The 5 step guide below is a brief overview of how you can ensure a stress-free, confidence-full process during the purchase of an off-the-plan apartment:
- Understand the lending policy relevant to your economic status
- Note, in detail, the deposit/s required to secure the apartment
- Shop around for a financial lender that is best going to cater to you
- Check to see if you are eligible for a government grant
- This is best done close to the time of purchase to ensure no changes have been made
The “What, When, Where, When?” Rule:
- Foremost, establish whether you are an owner-occupier, investor or first-home buyer
- Having a first-hand look at the potential area of your off-the-plan apartment is crucial to understanding the relationship it will have with your lifestyle
- Be sure to pick Parramatta and its surrounding suburbs
- “There’s never a right time to say good-buy” – but the best advice that can be taken is that the purchase should be made as close to completion as possible
- Do not discount the importance of investing in a lawyer – ensure that all paperwork involved in the process is thorough
- Be aware of the ‘sunset clause’
Interested in the upcoming developments that are set out in the neighbouring regions of Sydney’s second CBD, Parramatta?
Cite Group has a range of developments surrounding the area of Parramatta as well as a range of others in a variety of booming areas.
Investing or just curious? Contact us today to find out more!