The Sydney Metro is one of the most transformative infrastructure projects in the city’s history, and its impact on property prices is already being felt. As buyers’ agents based in Leichhardt, in the heart of Sydney’s Inner West, we have witnessed firsthand how infrastructure developments like this can reshape the property market. In this article, we will explore how the new Metro is expected to influence property prices across Sydney, particularly for those interested in property investment. We will also draw comparisons with previous projects, such as the Light Rail, to provide a comprehensive understanding of what lies ahead.
The Sydney Metro: A Game-Changer for Property Prices
The Sydney Metro is not just another public transport upgrade; it is a city-wide transformation that will significantly alter commuting patterns and accessibility. The project consists of several key lines, including the recently completed City and Southwest line, which opened in 2024, and future lines such as Metro West, expected to be operational by 2032. These new lines will connect suburbs previously considered too far from the CBD to central Sydney with unprecedented speed and ease.
Increased Accessibility Equals Higher Property Prices
One of the most significant factors that drives property prices is accessibility, and the Sydney Metro delivers this in spades. Properties located near metro stations are already seeing substantial price growth. According to CBRE and PropTrack data, suburbs along the Metro line have experienced a 49% increase in capital value over the past decade, outperforming surrounding areas by an average of 5%. The enhanced connectivity provided by the Metro has made these suburbs more desirable for both homebuyers and investors.
For example, Castle Hill, which has a metro station, saw a staggering 72% increase in property values over ten years compared to neighbouring Baulkham Hills’ 49% growth. Similarly, Crows Nest recorded a 79% rise in capital value compared to Cammeray’s 62%. These figures highlight how proximity to metro stations has already boosted property prices.
Suburbs Poised for Growth
While inner-city suburbs like Crows Nest and North Sydney are already experiencing price increases due to their proximity to new Metro stations, more affordable areas further from the CBD are also set to benefit. Suburbs such as Sydenham and Hurlstone Park, which are along the new City and Southwest line, are expected to see significant price growth as they become more accessible. For property buyers looking for opportunities outside the already higher priced Inner West suburbs like Marrickville or Dulwich Hill, these areas present attractive options.
The Impact on Property Investment
For those considering property investment along the new Metro lines, now may be an opportune time to act. Historically, properties near major infrastructure projects tend to see above-average price growth once construction is completed. CoreLogic data shows that properties within a 1-kilometre radius of new transport hubs typically experience price growth of up to 15% within three years of completion. This means that investors who buy now could see substantial returns as demand increases.
Moreover, rental demand is also likely to rise sharply in metro-served areas. Renters often prioritise easy access to public transport when choosing where to live. Properties within walking distance of train stations tend to lease more quickly and command higher rents. As such, investors can expect strong rental yields from properties located near metro stations.
Comparing with Previous Infrastructure Projects: The Light Rail Experience
Sydney has seen similar impacts on property prices with previous infrastructure projects such as the Light Rail. When the Inner West Light Rail was completed in 2014, suburbs along its route experienced noticeable price growth. For instance, properties in Dulwich Hill saw a marked increase in demand due to improved transport links. According to Domain, the Dulwich Hill median house price increased from $820k in 2010 when construction of the Light Rail extension commenced to $1,065,000 in 2014 upon completion. This is an increase of 29%.
However, while the Light Rail had a positive effect on property prices, its impact was somewhat limited compared to what we are seeing with the Metro. The reason is simple: speed and capacity. The Metro’s driverless trains run every four minutes during peak times and offer faster travel times than traditional rail or light rail services. For example, travel time from Macquarie Park to Barangaroo has dropped from 53 minutes to just 16 minutes thanks to the Metro.
Long-Term Outlook: Urban Renewal and Population Growth
In addition to immediate price increases driven by improved accessibility, the Sydney Metro is set to drive long-term urban renewal across many suburbs. Zoning changes around metro stations are allowing for higher-density developments that will accommodate growing populations. According to data from CBRE, population growth in suburbs along the Metro line has increased by 23% over the past decade—nearly double that of surrounding suburbs. This population growth is accompanied by an influx of new businesses and amenities into these areas. As more people move into metro-served suburbs, we expect further investment in retail spaces, restaurants, cafes, and community facilities. This will improve liveability and further boost property values over time.
The Bigger Picture: What Does This Mean for Property Buyers?
For property buyers looking for opportunities in Sydney’s competitive market, understanding how infrastructure projects like the Sydney Metro affect property prices is crucial. Suburbs with metro stations will continue to outperform those without them due to improved accessibility and urban renewal projects.
However, it is essential for buyers—whether they are homebuyers or investors—to act strategically. While inner-city areas like Crows Nest may be out of reach for many first-time buyers due to high prices, there are still affordable options further along the metro lines that offer excellent potential for capital growth. Suburbs such as Bankstown and Hurlstone Park have median values well below the Inner West average but are expected to see significant price increases as they become better connected via public transport.
Conclusion: A Golden Opportunity for Property Buyers
The new Sydney Metro represents a golden opportunity for both homebuyers and investors alike. With improved accessibility driving up demand and rezoning unlocking new development potential, properties located near metro stations are set for substantial price growth over the coming years.
As buyers’ agents based in Leichhardt, we understand how critical it is for our clients to make informed decisions when purchasing property. Whether you are looking for your next home or seeking an investment opportunity with strong capital growth potential, we can help you navigate this rapidly changing market.
If you would like more information about how the Sydney Metro could impact your property investment strategy or need assistance finding your next home near one of these transformative transport hubs, contact us today at Buyer’s Domain.
