Sydney Metro Northwest Priority Urban Renewal Corridor (Source: Planning and Environment Department NSW 2017)
The rail infrastructure is significantly under construction
The long-awaited Sydney Metro Northwest (formerly known as North West Rail Link) is projected to open in the first half of 2019. The under-construction rapid transit link will connect Rouse Hill to Chatswood and create new opportunities for the property market.
The $8.3 billion Sydney Metro Northwest is the largest transport project in Australia and will have a significant impact on the local property development. It will run from Cudgegong Road at Rouse Hill to Chatswood, including eight new stations at Cherrybrook, Castle Hill, Showground, Norwest, Bella Vista, Kellyville, Rouse Hill and Cudgegong Road.
The Hills Shire Council identified the Showground Station, Bella Vista and Kellyville as priority precincts for the Urban Renewal Corridor. The draft for the Bella Vista Station Proposal is built on the vision of transforming Bella Vista into "the Hills premier working and living district". The Kellyville Station precinct is envisaged to be “a green, vibrant and connected community”, while the Showground Station precinct is planned to become "The Hills Cultural and Innovation Precinct". New public spaces, neighbour parks, sport parks and more accessible natural spaces will enhance the living and work quality in these areas.
The Department of Planning and Environment has included the Cudgegong Road Station in the North West Priority Land Release Area. Over the next 10 years 33.000 homes will be provided to accommodate some 250.000 people in this area. The Cudgegong Road Station is destined to become a vibrant and liveable neighbourhood by building new homes, education facilities, retail stores and restaurants.
All the stations and the railway are currently under construction and are planned to be finished in the first half of 2019, whilst significant above ground rail infrastructure has already been completed.
This new infrastructure project and the related Priority Precincts plans offer a wide range of strategic property development site acquisition opportunities. These may be well-located brown field sites with up-zoning potential or existing tenanted investment properties with redevelopment potential.
Investment and development opportunities
Due to the forecasted significant population increase in these areas the demand for residential properties will continue to grow. However, following recent strong residential value increases over the past five years, the current opportunities lie in other sectors. Demand for early learning centres and schools will increase. The office sector supporting small and medium organisations, as well as the industrial sector, will benefit from the planned job creation in this area, as well as the industrial sector. Furthermore, there will be strong demand for retail/service sector properties (cafes, restaurants, gyms, etc) and medical centres.
Supported by major infrastructure spending, property value growth and a strong business services sector the economy in NSW and especially Sydney continues to be strongest in Australia. The vacancy rate of the Parramatta office market (Sydney’s second CBD) has fallen to 4.3%, being the third tightest in Australia and demonstrating the continuing positive outlook for the office sector in the Sydney region. (Property Council of Australia 2017).
Strong recent land value growth in commercial, industrial and retail zoned land requires expedited reviews of opportunities by prudent property investors.
NOTE: This information is understood to be from reliable sources and is not to be construed as investment advice. Expert investigation and independent due diligence should be undertaken by all parties prior to any agreement to purchase, develop or dispose of property.