How airports can springboard development
For investors seeking opportunities outside big cities, land developers suggest they should be looking to the skies.
In Australia’s ongoing quest to increase housing supply, a lot of the current focus has been on amping up density in existing cities. But according to greenfield developer BC Land, densification might not be the way to go.
“Rather than pushing for affordable housing in our existing cities, we should also be looking at developing whole new cities,” stated CEO Nils Miller.
Mr Miller suggested that by honing in on new aviation hubs, developers could capitalise on burgeoning employment hubs that will rake in strong profits in years to come.
“For example, the development of Western Sydney International Airport is attracting a range of businesses that will create an employment hub that will in turn lead to residential developments nearby,” he said.
While these businesses started out being primarily centred on the aviation industry, he noted that the area is increasingly becoming a magnet for a more varied range of businesses.
Eventually, Mr Miller predicted that these airport-focused employment hubs could create entire new cities, and add much-needed supply to Australia’s housing market.
The developments around Western Sydney International Airport are still in their early days, but BC Land believes that current trends at their Badgerys Creek site could provide a glimpse into the future of aerotropolis developments.
Mr Miller noted that the group’s greenfield commercial site “is already receiving expressions of interest from partners and tenants”.
With the M7 and M12 motorways within easy reach, he revealed that transport providers are some of the earliest takers. “We already have interest from providers of freight services and logistics along with light manufacturers seeking to service these as well as other aviation services,” he shared.
According to the developer, price is a major drawcard for businesses and residents seeking to put down roots in new metropoles. Unlike established cities where property prices are steep and commutes are long, BC Land suggested that new cities could provide affordable property at 30 minutes or less from key places of employment.
“We believe Badgerys Creek can be the start of a future trend in Australia as the population keeps growing and the existing big cities become too congested,” BC Land stated.
“The city of Bradfield, in the Badgerys Creek precinct, is an example of what can be done in other states when organisations and people come together.”
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