Should Property Developers Select Parramatta for Their New Developments in 2021?
It seems that almost every suburb of Sydney is always busy, under construction, and generally, booming. While popular suburbs such as Surry Hills, Darling Harbour and Coogee remain, predictably, in demand over the years, newer ones have crept up close behind. One of those suburbs is Parramatta, where new developments seem to pop up every day. While this may come as a surprise to some, the property developers at Cite Group are well-aware of the value of Parramatta.
Parramatta is a major commercial suburb in Sydney and is often positioned to be ‘the second central business district’. From this description alone, anyone would be able to determine that Parramatta is an attractive spot for property investment. However, most property developers know that more details and information are needed to properly assess the return on investment for a suburb.
Without a proper assessment of a suburb, whether it is Parramatta or any of the other 657 suburbs in Sydney, property developers and investors put themselves at risk of a low (or non-existent) return on investment. To avoid this, thorough research of the area is needed to assess a development’s potential profitability.
Even if you believe that a suburb is a valuable area to invest in, an analysis of the following is key in determining whether it would be profitable for the type of property you want to develop:
- social demographics,
- geographical importance and centrality, and
- amenities and connection to the rest of Sydney.
In this article, we’ll analyse Parramatta’s suitability for new residential developments through an assessment of social, geographical and economic factors.
3 reasons why property developers should select Parramatta for their new developments
- Strong demographics point to consistent demand
Parramatta’s demographics point to a steady and solid demand for residential apartments in the foreseeable future. By 2041, the population is set to increase by 74.52 per cent. Parramatta is a major employment centre and is set to see an influx of new jobs as major infrastructure and development projects begin in the area.
Additionally, construction on the Parramatta Engineering Innovation Hub will commence in 2021 and is expected to create 1000 construction jobs and, more importantly, 1300 ongoing jobs. Parramatta Square, which is set to open in 2022, will provide four towers of premium retail and office space which will be occupied by companies who attract and employ people.
Solid growth in a population that’s expected to benefit from a number of employment opportunities is key in securing a steady demand for residential developments.
- Geographically convenient for owner-occupiers and investors
A surprising fact to many is that Parramatta is much more central than Sydney. It is geographically more centred than Sydney between the eastern and western suburbs, and is only 30 minutes away from the Sydney central business district. This makes it more attractive for companies, owner-occupiers, commuters as well as for investors interested in purchasing to rent.
The location of Parramatta also provides more access to Greater Sydney. The Sydney central business district, while a booming business hub, is not liveable or accessible for people who live and work in other parts of Greater Sydney. Parramatta is a happy marriage between centrality and accessibility without compromising on amenities. This makes it attractive for both renters and buyers – a win-win for property developers.
- Public transportation makes the city attractive to new residents
Geographical connectivity is important for a variety of reasons; people want to make sure that their commute is short, easy and that they have easy access to attractions, amenities and people outside of Parramatta. Distance is not the only factor to take into consideration. Public transport is integral in attracting potential renters/buyers as many people in Sydney do not own a car and rely on NSW Transport.
Parramatta is easily accessible to the City with its suburbs, the Sydney CBD and wider metropolitan area via rail, bus, ferry, and car. In addition to its current connectivity, Parramatta is set to benefit from even better public transportation. Here are a few developments that will be coming soon to the city:
- The Parramatta train line is set to add two CBD stations at Pyrmont and Hunter Street.
- The Sydney Metro West project is a new underground metro railway that will connect the Parramatta and Sydney CBD. It was developed as an extra 420,000 people are expected to move into the corridor between Greater Parramatta and central Sydney over the next 20 years.
- The Parramatta Light Rail will connect Westmead to Carlingford via the Parramatta CBD and Camellia in stage 1 and then in stage 2, connect the Parramatta CBD to Ermington, Melrose Park, Wentworth Point and Sydney Olympic Park.
Cite Group sees a strong future in the property development market for Parramatta
From this analysis, it can be concluded that Parramatta is an excellent location for the development of residential apartments in 2021. According to the number of transportation upgrades and the strong socio-demographic data, Parramatta is set to remain economically strong and experience increased property values for the foreseeable future.
The city has been booming for the last few years, and shows no signs of slowing down, paving the way for strong and steady demand in the area.