Why Western Sydney is attracting property developers from across NSW
According to property developers, Sydney, particularly Western Sydney, is projected to continue an incredibly strong year for its commercial property market, despite the troublesome COVID-19 pandemic, which inevitably affected success in the market. However, all things considered, the commercial property market is by no means, flat-lining. While the market has suffered due to the length of time it’s taking to contain the virus, unemployment rates and the lockdown, it is expected that it will pick up in the latter half of the year as a build-up of latent demand will rush the market and cause it to rebound. Remember, the current stand-still is not a reflection of the ‘intrinsic value’ of properties but rather, of governmental and societal changes.
Why Western Sydney?
Western Sydney has been cited by a number of developers as one of the most attractive places for opportunity and investment. If you know anything about Sydney, you’ll understand that it’s surprising that property developers are attracted to Western Sydney because of the number of suburbs within that region that are on the lower socioeconomic scale. These characteristics don’t usually spell ‘success’ for most developers. So, why are property developers investing in Western Sydney? Let’s take a look.
Why Western Sydney is the newest property development hotspot
Western Sydney Airport – commercial property attraction
A major pull for property developers, particularly commercial property developers, is the construction and completion of the Western Sydney Airport. Construction is set to begin in 2026. Apart from the eventual completion which will create an influx of local and international tourists and buzzing economic activity to Western Sydney, the construction is also expected to generate economic activity as well as provide employment opportunities for persons in the region. Commercial property developers see a massive opportunity for commercial rent.
Potential for capital gain
Western Sydney is perceived as having the potential for tremendous gain. It has projected economic growth for years to come because of well-established communities, entertainment and shopping areas and a new up and coming airport that’s expected to stimulate the local economy and provide employment opportunities from the commencement of its construction in 2026.
First-time investors are likely to select Western Sydney for their purchase as many of the properties located there are extremely affordable. This also makes it easy for new, up and coming property developers to begin building their portfolio. It’s a great starting point that can lead to larger purchases in a property developer’s career.
Western Sydney is home to large suburban blocks which are able to accommodate the addition of a secondary dwelling or ‘granny flat’. Granny flats have become increasingly popular within the last 5 years and thus, property developers are seeing the value of including it in newly acquired properties. Even though it may cost more to construct a granny flat onto a property, property developers are finding that the returns in rent are worth it.
What does this mean for property developers and Western Sydney?
- The lack of personal connection with these homes may indicate that tenants may be privy to greater security with their leases. This may indicate that future property developers will have to match this security in order to remain competitive.
- Western Sydney may increasingly feature rental and not owner-occupied properties, paving the way and increasing the competition of residential developments.
- Low-density houses in lower value middle and outer suburbs may become the main epicentre of sector growth due to the decline of high-rise apartments.
Where should you invest in Western Sydney?
Western Sydney is a large region and while it’s been attractive overall to developers, which are the best suburbs to invest in? Here are a few of the best options for investment in Western Sydney.
Blacktown is a well-established community that has seen substantial growth over the past few years–and it’s not stopping. Home to local attractions like the Featherdale Wildlife Park, a shopping and entertainment hub and the state’s last remaining drive-in cinema, it’s well-equipped to host residents and business.
- Pendle Hill
Pendle Hill is usually quiet and attractive for families as it is close to the M4 and Cumberland Highway (perfect for those commuting to the city for work). A large school, shopping centre and railway station make it obvious why this would be an attractive suburb for any developer.
- Baulkham Hills
Home to sports and leisure facilities, shopping centres, restaurants, cafes, parks, schools and transport. There will also soon be a Baulkham Hill station when the Western Sydney
Light Rail Network is completed, making it a more connected and even more attractive suburb.
It’s exciting and encouraging to know that the market is not only expected to rebound but also that Western Sydney has become such an attractive location for property developers. As a team, we thrive at the prospect of new opportunities and are thrilled at the options that await us in Western Sydney.