Outer west prices boom as inner Sydney property market falters

Thursday 27 Sep 2018

The last few months for inner Sydney property owners have been brutal to say the least. The market has seen its steepest drop in value since the Global Financial Crisis and those who benefited the most from healthy growth over the last few years, are now scrambling to salvage what they can of their investments; it’s expected that there will be an overall drop of around 5% in median house prices across Sydney for 2018 (according to CoreLogic). A weakening market is resulting in an increased amount of properties for sale, yet fewer prospective buyers are available to even attend open homes, much less make offers to purchase. A few kilometres away in the outer west however, it’s a different story. Major projects such as the Western Sydney Airport, Sydney Metro Northwest and the North-South Rail Link will transform the area over the next decade and the current property market is offering once in a lifetime opportunities for savvy investors. As billions of dollars are funneled into new infrastructure and developments, the outer west is on target to become Sydney’s second city, a reality that is being reflected in local property prices. With construction well underway in many areas, property investors and owner-occupiers in the outer west are recognising the opportunity in front of them and getting in on the ground level. This burst of interest and activity has caused local property prices to surge and current rates of growth are beyond what even the most experienced real estate experts could have predicted. The key areas of growth have been those directly around the area of the new airport at Badgerys Creek. Suburbs such as Bringelly saw an immediate boost around the time of the new airport project’s announcement. What was historically semi-rural will soon become central urban and prices have more than tripled over the last few years as a result. Bringelly is not alone – nearby Rossmore, Glenorie and Mulgoa have also experienced incredible growth of up to $2000 a day, simply due to their proximity to Badgerys Creek and the new airport development. With the airport project now well underway, there have still been no signs of slowing, with average property prices continuing to power ahead; suburb by suburb, the numbers speak for themselves. Over the last 12 months, average house prices in Bringelly went up from $2.05 million to $2.8 million. Homes in Rossmore were valued at an average of $2.46 million last year and jumped to $3.43 million a year later. Glenorie property values rose from $1.36 million to $1.88 million and Mulgoa’s median surged from $1.06 million to $1.44 million (according to realestate.com.au and CoreLogic data). Though many large older suburban homes were snapped up by hungry investors at the time of the airport announcement, there are still plenty of entry points for new buyers, with a further 30 to 40,000 new homes to be added in the surrounding areas. These suburban developments are just the beginning of what will be a fundamental transformation of the whole western Sydney region. Population growth will support and validate the planned expansion of transport, housing, shopping centres, education and sports and recreation facilities – all part of the multi governmental Western Sydney City Deal. The deal’s focus on achieving strong and sustainable growth comes from a focus on investment, development and liveability in the region. With the airport opening scheduled for 2026 and many of the other major infrastructure projects scheduled to be completed before or by the same date, the strong growth in Sydney’s west and north west will only continue. The north west is already establishing itself as Sydney’s hottest new residential location, with less than a 1 hour commute into the CBD and all the perks of a city lifestyle. The key point of difference however is that unlike inner Sydney, the outer west offers affordable lifestyle choices for a cross section of residents, rather than just a select few. Contemporary living solutions are offering a diverse range of property entry points for everyone from first home buyers to strategic property investors and owner occupiers, and as long as the Sydney market continues to falter, the outer west can only continue on its upwards trajectory. Read more: Thinking of Investing In Property Investing as an option for first home buyers DISCLAIMER The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions. Click here for full Terms of Use.