10 infrastructure projects pushing Western Sydney property prices sky high
Home to more than 2.5 million people, Greater Western Sydney is well and truly earning its status as the location of Sydney’s second CBD centrality, propped up by an influx of residents and more and more funding being injected across the region.
As Western Sydney continues to grow and develop, infrastructure projects are becoming increasingly important in supporting long-term capital growth in the region. While this includes new roads and transport options, the density of the local population has also enabled investment across entertainment, sports, travel and leisure, further increasing the area’s appeal for families, professionals, students, and businesses alike.
Spanning Windsor in the north to Campbelltown in the south, Parramatta in the east to Penrith, and the Blue Mountains in the west, Western Sydney’s population is expected to reach 3 million by 2036 and absorb two-thirds of Sydney region’s population growth over that time.
It’s also one of Australia’s most multiculturally diverse regions. Nearly four in 10 (38 per cent of the population) speak a language other than English at home. In some suburbs, that jumps to nearly 90 per cent speaking a different language.
In fact, the suburb of Cabramatta has a non-English-speaking population of 87.7 per cent, the highest of anywhere in Australia (excluding remote Indigenous communities).
Other Western Sydney suburbs, Bankstown and Canley Vale, also boast non-English speaking populations of above 80 per cent.
Going forward, it will be absolutely vital that the infrastructure is designed to support a growing mix of people who call the region home. Here are the top 10 infrastructure projects that will have the most significant impact on property prices in Western Sydney:
- Western Sydney Airport – Already known as the Western Sydney International Nancy-Bird Walton Airport, this new international airport is set to become one of the largest in the country when it opens in 2026 and will create thousands of new jobs in the region — both during its construction and when it has commenced operations. The airport is expected to drive demand for housing and commercial property in the area, as well as boost tourism and demand for both short and long-term accommodation options.
- North South Rail Link - This project will connect Rouse Hill to the new Western Sydney Airport, providing faster and more convenient transport options for residents and businesses from St Marys to Macarthur, and has been designed to support the planning of future town centres across Western Sydney.
- Western Sydney Employment Area – Located 50 kilometres from Sydney’s Central Business District, this project will create over 100,000 jobs in Western Sydney, further driving demand for housing and commercial property in the region. With the employment area set up to provide businesses across the region with land for transport, logistics, warehousing and office space purposes, it also aims to give businesses access to roads and utility services, while reducing commute times for locals.
- M9 Outer Sydney Orbital - This new motorway (and adjoining freight rail line) will provide better connectivity to Western Sydney and help to alleviate congestion on existing roads, running parallel to The Northern Road. With land already having been reserved for the project, it’s set to link the M31 Hume Motorway at Menangle with the Central Coast, travelling via Camden, Penrith and Windsor.
- Western Sydney Stadium - This state-of-the-art sports stadium, known as Commbank Stadium, can house 30,000 people. It’s already attracting more and more visitors to the region, which is a boon to Parramatta’s local economy. The recent success of the Penrith Panthers and Parramatta Eels (NRL) and the Greater Western Sydney Giants (AFL) also point to the popularity of the sport across the region.
- Parramatta Light Rail – Expected to open in 2024, this project will provide faster and more convenient transport options for residents and businesses in the Parramatta region, supporting further growth and development in the area. Stage one will connect Westmead to Carlingford via Parramatta CBD, while stage two will connect to Sydney Olympic Park via Camellia, Ermington, Melrose Park and Wentworth Point.
- WestConnex – This 33-kilometre-long underground motorway provides better connectivity between Western Sydney and the rest of the city, helping to reduce travel times and improve transport options for residents and businesses. Stage three is set to be completed in late 2023 and will be followed by the Sydney Gateway project.
- Western Sydney Parklands - This large public space, which is home to more than 60 kilometres of tracks and trails, provides new recreational options for residents in the area, further boosting the region’s appeal as a place to live and work.
- Campbelltown Hospital Redevelopment - This project will provide improved healthcare options for residents in Western Sydney, making the area more attractive to families and older residents. Construction has now been completed on the 12-storey clinical services building, which has been touted as the “centrepiece of the $600-million hospital redevelopment”.
- Badgerys Creek Road Upgrade - This project will provide better connectivity to the new Western Sydney Airport when it is completed in 2026, making it easier for residents and businesses to access the airport and further driving demand for property in the area.
These infrastructure projects are already having a significant impact on property prices in Western Sydney, driving demand for housing and commercial property in the region.
As the population of Western Sydney continues to grow, the demand for new infrastructure projects will only increase, further supporting long-term capital growth in the area.
Western Sydney is already the third largest economy in the country, trailing only Sydney CBD and Melbourne in terms of economic output. The Parramatta CBD also ranks among the largest CBDs across Australia and is commonly referred to as Sydney’s second CBD.
Combined with its status as a multicultural hub and, subsequently, an area where new migrants to Australia will be attracted, many more people will look to call the area home for all the benefits on offer. As demand outweighs supply, that will, in turn, continue to drive property prices up, especially in areas close to transportation and amenities.
According to .id, Western Sydney “remains the epicentre of Australian migration,” acknowledging it as “a first port of call for many migrants.”
Moving forward, the region is set to hold onto that status, thanks to its booming population forecasts.
The NSW Department of Planning has forecast that the area will grow by almost one million people (46 per cent) over the next 20 years.
The government department also notes that the region “has a younger population than other parts of Sydney and NSW, with large numbers of children and people of working age.”
That trend is set to hold up in the years to come, with strong growth across these age groups expected to maintain the region’s young age profile, despite an ageing population becoming more prevalent across NSW more broadly.
As the population grows in Western Sydney, so too will the number of households. The NSW Department of Planning has also revealed that couple-only and lone-person households will become the fastest-growing household types in the region, subsequently driving demand for smaller dwellings such as apartments and villas.
Even so, the NSW government does expect an increase in couples with children households, boosted by the young age profile of the region, and supports the development of housing estates that can support family dwelling types.
In order to take advantage of the long-term growth potential of Western Sydney, property investors should focus on areas that are likely to benefit most from these infrastructure projects. These areas include suburbs that are close to major transport hubs, as well as those that are likely to see the most significant employment growth.
In addition, investors should consider the long-term outlook for the Western Sydney property market, taking into account factors such as population growth, employment trends, and the ongoing development of new infrastructure projects. By doing so, investors can make informed decisions about where to invest in order to maximise their returns over the long term.
It’s important to note, however, that the impact of these infrastructure projects on property prices is not immediate. It can take several years for the full impact of these projects to be felt in the property market. As such, investors should adopt a long-term view when investing in the Western Sydney property market, focusing on areas that are likely to see sustained growth over the coming years.
In conclusion, the top 10 infrastructure projects for Western Sydney will have a significant impact on property prices in the region, supporting long-term capital growth for property investors. By focusing on areas that are likely to benefit most from these projects and taking a long-term view of the market, investors can position themselves to take advantage of the growth potential of this rapidly developing region.