Sydney is in the middle of a huge post-pandemic property boom, with CoreLogic data outlining that dwelling values have skyrocketed up 11.2% in 2021, and 9.3% in its second quarter. With prices only expected to grow, getting into the market is better done sooner rather than later. But where should investors look? There are many growth areas popping up in and around Sydney thanks to infrastructure development. This article will take a deep dive into these Sydney growth areas to highlight where your investments could best perform.
Infrastructure Growth and Property Prices
Infrastructure growth is strongly linked with property price growth. This has been the case for both Newcastle and Brisbane and is due to the influx of investment into the area linked with these infrastructure projects. Hospitals bring in doctors and nurses who rent or purchase property in the area. Shopping centres bring in builders and workers who do the same. Key areas that are experiencing property price growth are those that are experiencing significant infrastructure growth. Some of these areas are highlighted below.
Growth Area – Penrith
This city in Greater Western Sydney is increasingly becoming a lucrative investment opportunity given its close proximity to Sydney’s CBD, and the billions of dollars being put into its infrastructure. With it being a 50-minute drive or train ride into the CBD, many young city workers and their families are looking to areas with lower financial barriers to entry. Penrith is quickly becoming a very viable area, with houses costing $718,000 on average. This price is only set to grow, with the nearby $5.3 billion Western Sydney Airport construction nearing its completion and the $4.1 billion Northern Road upgrade. This airport is expected to support 28,000 direct and independent jobs, with the $1.5 billion Northern Road Upgrade easing congestion in and out of the Western Sydney area. These infrastructure developments have seen Penrith’s property prices grow by 12.19% from last year, with a 7.8% higher than the national average.
Growth Area – Smithfield (20 min from Parramatta)
Parramatta is growing to become a second major CBD for Sydney, creating lots of investment opportunities with surrounding suburbs. Specifically, Smithfield is experiencing large growths in property prices. Houses here have a median house price of $770,000, with property prices growing by 10% from 2020, 5.7% above the national average. This growth has been bolstered by road upgrades in and around Parramatta, and significant investment into the Parramatta CBD. Examples of these include the $2.4 billion Parramatta light-rail program, which will ease congestion for the CBD’s future. Another is the $3.2 billion Parramatta square development, which will see 6 high-rise buildings, a refurbished town hall, and a university campus.
Growth Area – Richmond & Windsor
These suburbs in the Hawkesbury area are an affordable way to get into the growing Sydney property investment, with houses averaging around $681,375. They are around a 50-minute drive into the CBD, with public transport options available as well. These suburbs allow residents to enjoy the pleasantries of a quiet country town life due to their rural and natural setting, but they also offer relatively close proximity to Sydney. The NSW government has announced upgrades to both Pitt Town and Richmond Road, increasing their capacity and reducing travel time. There has also been a new construction of the Windsor Riverview Shopping Centre, which should drive up investment into the area. These developments have seen a 7.46% growth in prices in this area compared to last year, which is 3.16% above the national average.
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