2018 Real Estate Outlook | Market and investment Western Sydney – Australia's development site The surge in infrastructure development and real estate construction projects to accommodate Sydney’s growing population has begun. What is your Western Sydney strategy? Today, we have moved from ambitious Over the past five years, Western Sydney concepts to more practical plans, many has been in transition from the poor of which are under construction. A customer to the big and shiny CBD to its number of major government-backed east to a region full of potential - with the infrastructure projects are already promise of a key real estate, development underway and others are progressing and construction hub. through the planning process. These large-scale projects are injecting Back when people would ask: ‘Why are you confidence into the private sector to in Western Sydney?’ there was a stirring invest in the region through all forms recognition of the need for Western Sydney of development. to thrive in order to unlock the economic potential in NSW, and potentially Australia. This was also driven by the need to accommodate our growing population. 01 2018 Real Estate Outlook | Market and investment A more integrated planning environment continued growth in industrial and logistics has also helped, with the creation of the facilities around the Moorebank intermodal The question we Greater Sydney Commission and the terminal along the M4/M7 corridor. now ask, is not, release of the integrated Future Transport As jobs and supporting infrastructure are Strategy for NSW. built, the demand for housing will continue. ‘why are you in Precincts and zones are emerging across Government policy decisions around land the region, which are going to provide release and planning approvals will be critical. Western Sydney?’ large-scale development opportunities, and The nature of the housing product provided but how can you lead to other local supporting development. should diversify as well, catering to the new Three better known examples include: the breed of locally based, well-paid workers. afford not to be? health precinct being created across the This will create a need for density along the South West; the aerotropolis envisaged new metro, rail and motorway corridors, adjacent to the airport to house advanced and more premium quality housing. aerospace and defence companies; and the In the following article we set out some of the key themes playing out across the region and highlight some of the major infrastructure projects. Infrastructure projects across the Western Sydney region 02 2018 Real Estate Outlook | Market and investment Seize the opportunity in Any concern of apartment oversupply The potential development outline within Western Sydney in Parramatta CBD appears to be the Sydney Olympic Park Master Plan 2030 The real estate development and overblown as developers react to the will transform the area to include a mixed investment community is constantly ‘cooler’ market conditions with a 59% residential and office precinct with 23,000 seeking opportunities in growth areas. decrease in DA-approved apartments, new residents, 34,000 new jobs by 2030, The challenge is to identify and secure these compared with those currently under new schools catering for 5,000 students, opportunities before your competitors. The construction for the period 2017 to 2018. all complemented by investment in leisure boom in infrastructure project spending and and retail. Infrastructure investment by the private and government With the proposed Parramatta Light Rail sectors in Western Sydney is a catalyst for ‘Seizing the opportunity and Sydney Metro West, the new transport real estate and development opportunities. system will deliver both interconnectivity early in a strategic Western While these projects are not a secret, the within Greater Parramatta to the Olympic advantage is to be gained through smart Sydney location is likely to Peninsula region by 2023. It has also timing. Western Sydney is a long-term play improved routes to the Sydney CBD, with deliver above average capital and opportunities are plentiful. travel times down to less than 20 minutes growth in the medium term’. between Parramatta CBD and Sydney CBD. Locations with current The Greater Sydney Commission has Investment in Parramatta’s cultural recognised the park as a precinct that and planned concentrated precinct will attract more visitors to the forms part of Greater Parramatta to the area. It will also include the proposed investment and Olympic Peninsula region and Stage 1 Light move of the Museum of Applied Arts Rail will provide improved connectivity to development activity. and Sciences (MAAS) to the Parramatta Parramatta CBD and Westmead Health riverbank, planned expansion of and Education precinct once completed, Parramatta CBD Parramatta Riverside theatres, and a expected in 2023. 30,000-capacity Western Sydney Stadium. Statistics The new Sydney Metro West line will Parramatta is located approximately 25 As this expected increase in workers and connect Sydney CBD and Parramatta, and kilometres west of the Sydney CBD. It visitors materialises there will be a gap in will stop at Sydney Olympic Park. Travel is four times the size of Perth city. The the market for short-term accommodation. times to the Sydney CBD will be halved to Parramatta Central Business District is the Currently 857 new hotel/serviced about 20 minutes. second largest employment destination apartment rooms are expected to be built to the Sydney CBD in NSW, and is growing by 2020 in Parramatta CBD, to service It will include three precincts – Stadia, rapidly. the Parramatta CBD as well as the wider Central and Parkview that will capture western Sydney precincts. the benefits from the recently announced Parramatta Square is a $2bn city centre rebuilding of ANZ Stadium. This will renewal project, with 135,000m2 currently provide civic, retail, and other amenities in under construction across three new office Parramatta’s vision to the heart of town centre, and will lead to projects. Pre-committed tenants include create future growth and the construction of a low-rise residential NAB, NSW Department of Education and neighbourhood. the NSW State Government. Approximately opportunities, and become 30,000 workers will be moving into the an even more liveable city, Stage 2 of the Parramatta Light Rail Parramatta CBD by 2020. Parramatta CBD will improve connectivity, with a direct office vacancy for ‘A’ grade buildings is is finally being realised, connection to Parramatta CBD. currently at ‘0%’. with benefits from multiple The Sydney Olympic Park will continue to The high-rise and higher quality projects projects now underway. evolve and provide ample development/ introduced into Parramatta CBD over investment opportunities under the future the last five years have triggered strong Sydney Olympic Park vision of the Masterplan 2030, with the residential development activity. Sydney West Metro, the major enabler Developers are invested in Parramatta CBD Sydney Olympic Park (SOP), which is of growth of this precinct in the Western in the medium to long term, with a strong located just 15 kilometres west of the Sydney region. pipeline of residential and mixed-use Sydney CBD, houses Australia’s largest projects at the proposal stage. sporting and entertainment precinct, which has now matured into both residential and commercial office locations, with significant expansion plans. 03 2018 Real Estate Outlook | Market and investment Western Sydney Airport Liverpool and South West The health precinct will be complemented by the emergence of new university Western Sydney’s Airport project will be Liverpool’s vision is to re-activate its city campuses in Liverpool, that are expected going ahead and is due for completion centre by ‘anchoring’ the Liverpool Civic to accommodate up to 9,500 new students. by 2026. It is a unique opportunity for Place project at the southern end of the The University of Wollongong recently Western Sydney to house Sydney’s second city (opposite end of the current Westfield completed its South Western Sydney international airport. There will be flow-on shopping centre and Liverpool Hospital). campus, while Western Sydney University’s benefits to the region as the development The project is scheduled to take four years. Liverpool campus, is currently under of the ‘Aerotropolis’ will incorporate New council offices and chambers, a civic construction, with completion expected residential, industrial and commercial plaza, amenities, as well as student, hotel, early this year (2018). development around the airport and so and residential accommodation, are all benefit the whole region. It is proposed planned. The investment by Liverpool Sydney Science Park to be a 24-hour airport. Council is around of $75m. Sydney Science Park is set over 280 The airport site at Badgerys Creek is The South West and Greater Macarthur hectares and is located in the strategic located in Western Sydney near the New region of Western Sydney continue to ‘Western Sydney Priority Growth Area’ South Wales Government's Western be areas supplying significant housing at Luddenham. With convenient access Sydney Employment Area, the Western growth, with detached housing in release to both the M4 and M7 motorways, it is Sydney Priority Growth Area, and the areas and in Liverpool, Campbelltown and three kilometres north of the new airport South West Priority Growth Area. other areas adjoining stations along an at Badgerys Creek, and 24 kilometres west extension to the new railway line. The Western Sydney Infrastructure Plan of Parramatta. The project value is $5bn outlines future transport infrastructure The growth of housing in these areas is and and is expected to deliver a community including the ‘M12 Airport Motorway’ supported by the NSW Department of that will create more than 12,000 jobs, extending from Liverpool to the airport Planning which has identified five priority 10,000 students and be home to more and connecting into the existing M7 precincts (out of a total of 30) that lie than 10,000 residents.