Sydney transport infrastructure driving property price growth
While it’s true that location, location, location are the ‘three’ golden principles of value investment, it’s also true that amenity is key to success.
When the commute is faster, the public transport more convenient, and the nearby parks, schools and hospitals are better, a property’s attraction and value improve. For investors, if an asset benefits from improved infrastructure and amenity, this equates to potentially more rent too.
So, let’s look at Australia’s most valuable property market – Sydney – and the infrastructure projects that will improve amenity and desirability for real estate stakeholders.
The NSW State Budget has unveiled a massive $30 billion in infrastructure projects for the next financial year. This aligns with the state’s post-pandemic jobs creation platform.
Most of this spend is going to be commute-busting infrastructure, designed to bring the western suburbs closer, or the CBD closer to the suburbs.
Transport Minister Andrew Constance was reported in the Sydney Morning Herald as describing the transport spend as “the engine room of job creation”.
“Whether it is in our CBD or across western Sydney, we have never before invested so much into job-creating transport infrastructure in NSW,” he said. “We are delivering the largest transport infrastructure program this nation has ever seen investing billions into significant projects like WestConnex and Sydney Metro.”
This all adds up to improved property values, based on better commute times and greater convenience.
Sydney Gateway project: A contractor was announced late last year – John Holland Seymour Whyte – and construction is beginning this year. The project is forecast to slash commute times from western Sydney by 30 to 40 minutes and will connect the WestConnext motorway from St Peters to Sydney Airport and Port Botany. It is expected to carry 100,000 vehicles a day. It should be completed by 2024.
M6 Motorway: This $2.5 billion project will link President Avenue at Kogorah with the WestConnex M8 at Arncliffe and, with a contractor announced, will soon begin construction on the 4km twin tunnels, and due for completion next year. No free ride for commuters, though, with tolls set to start at $1.77 each way. There is some question over whether this will extend to Sutherland Shire, but the NSW Government says it is researching all options.
Metro West: The four-year project, costing a total of $20 billion, will connect the city to Parramatta, bringing the west closer through shorter travel times. It is set to double rail capacity between Parramatta and Sydney, through the 24-kilomtre metro line with stations set for Westmead, Parramatta, Sydney Olympic Park, North Strathfield, Burwood North, Five Dock, The Bays, Pyrmont and Hunter Street in the Sydney CBD.
Western Sydney Airport Metro: The new metro rail line will connect the new Western Sydney International (Nancy-Bird Walton) Airport with greater western Sydney – reducing congestion and delivering greater appeal for residents who regularly commute long distance (post pandemic of course). This further increases the cache of the region’s most substantial population hub away from the harbour.
(In Planning) Parramatta Light Rail: The Parramatta Light Rail will connect Westmead to Carlingford via the Parramatta CBD and Camellia with a two-way track spanning 12 kilometres and is expected to open in 2023. The route will link Parramatta’s CBD and train station to the Westmead Health Precinct, Cumberland Hospital Precinct, the Bankwest Stadium, the Camellia Town Centre, the new science, technology and innovation museum Powerhouse Parramatta, the private and social housing redevelopment at Telopea, Rosehill Gardens Racecourse and three Western Sydney University campuses. By 2026, around 28,000 people will use Parramatta Light Rail every day and an estimated 130,000 people will be living within walking distance of light rail stops.
Grab a bargain:
Transport and commute times is one of the key factors people consider when buying or renting a new property. As new transport options become available property prices inevitably improve in response to reduced commute times.
With a range of transport projects due for completion over the next few years, now is a prime opportunity to identify properties set for price growth and grab a bargain that will enjoy capital gains for years to come.
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The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs.