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Upcoming Sydney Infrastructure Projects: Good News For Sydney Property Buyers
October 21, 2013
The Sydney real estate market continues to grow from strength to strength; with near-record high auction clearance rates and median property values increasing again in many suburbs. In addition; the NSW Department of Planning and Infrastructure has many exciting projects lined up for Sydney in the next 2 years, and this will underpin further growth in specific pockets and corridors of Sydney.
So today I thought I’d outline a list of projects either underway already, or in recent approval status, that could have some positive impacts on surrounding area property values in time. I’ll also mention some potentially negative impacts to be conscious of, when considering purchasing real estate in the affected areas.
The north-west rail corridor
This is already underway and has been making news for some time. According to the Sydney Metropolitan Strategy guide found on the NSW Dept. Infrastructure and Planning website; the service will connect from existing Epping train station and travel out on a new line over eight stations; Cherrybrook, Castle Hill, Showground, Norwest, Bella Vista, Kellyville, Rouse Hill, and ending at Cudgegong Road Station.
Whilst construction noise and traffic disruption will challenge property values along the affected train line areas over the coming few years; it is likely that many suburbs will benefit once construction is complete. Of particular interest is how it will affect the business-park suburb of Norwest. The suburb is very comparable to North Ryde; which serves as a more cost-competitive office space environment than say Sydney CBD or North Sydney.
The other challenge with property values once the line is complete comes from criticism observing that as a commuter service to the CBD from the north-western suburbs; the service may not actually save time. CBD-bound commuters must change trains at Epping to get to the city and have only two options:
1) Taking the Epping Line (aka ‘Main North’ red line), which even on a fast peak-hour service will still have eleven stops in addition to the potential eight stops if you board at Cudgegong Road
2) Connecting to the North Shore (aka ‘West and North Shore’ yellow line), which even as an express service, bypassing small stations, will still take a minimum of seven more stops to arrive at Town Hall
Regardless; the rail link will no doubt better connect western Sydney with itself, and this will have a positive effect on real estate value.
Anzac Parade and Parramatta Road Corridors
Work is occurring to make these heavily congested corridors more appealing to home-dwellers and home seekers. The NSW government intends to do this by adding green/public spaces, improved retail and commercial spaces, and enabling greater connection with local areas including Sydney Olympic Park, Burwood, Maroubra, and Randwick Activation area.
This project has been received with criticism about the cost to the state government; whilst not actually improving traffic flow or easing congestion. Rather, it aims to make these spaces more pleasant and desirable to visit. This in itself though, is not a bad thing for home or investment buyers in these locales; as any investment in to improving the desirability of living in an area can only aid in a suburb’s performance over time.
This is just a couple of the upcoming developments that the NSW government is planning for Sydney, and I’d encourage property buyers interested in these suburbs to read the summarised ‘Your Future Sydney’ report, found here:
This is arguably the most publicised and well-reported private development project in Sydney right now. And with good reason; the site is huge and well-positioned next to the CBD and across the water from Pyrmont and North Sydney. The site features complete mixed-use zones; high-rise commercial office suites, residential apartments, and yes, another casino for Sydney. However, it also includes open green spaces and parks; a new ferry terminal, and uses sustainable water and green technology to power it, and entertainment and dining precincts.
The development has been met with mixed speculation and concern over the use of space and additional human traffic it will create in an otherwise compact CBD area of Sydney. For property buyers purchasing off-the-plan within the development, there is speculation about residential unit value growth within the first five years. For residential buyers in surrounding areas, however, there will be less impact, because the Barangaroo precinct is located in a mostly non-residential area. However, there could be an impact in areas such as Glebe/Pyrmont, and Surry Hills through to Camperdown areas as well, in terms of swaying would-be buyers from these places over to Barangaroo.
More information on the development can be found here.
Whether you are a home or investment buyer; it is always wise to investigate private and government development projects emerging in your chosen suburb. Project dynamics such as construction congestion and noise, pollution, and increased human traffic are cautions not to take likely that could greatly alter the future of your home or investment.
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