How Sydney’s Massive Infrastructure Boom is Transforming the Property Market

Table of Contents

As experienced buyer’s agents based in Sydney’s Inner West, we have a front row seat to the incredible infrastructure boom that is reshaping our city and its property market. With over $70 billion of transport infrastructure projects in the pipeline over the next four years, Sydney is undergoing a once-in-a-generation transformation that will have profound impacts for property investors.

In this article, we will examine some of the most significant Sydney infrastructure projects currently underway and analyse how they are likely to affect residential and commercial property values in the coming years. By understanding these dynamics, investors can position themselves to capitalise on the opportunities created by Sydney’s infrastructure-led growth.

Sydney Metro Driving Residential Price Growth

Perhaps the most transformative infrastructure project is the new Sydney Metro. This 66km rapid transit system will include 31 stations stretching from Rouse Hill in the northwest to Bankstown in the southwest, with a new tunnel under Sydney Harbour and through the CBD.

The first stage known as Sydney Metro Northwest is already having a sizeable impact on residential property values. According to recent data from CBRE and PropTrack, suburbs along the Metro Northwest line have experienced a 49% increase in capital values over the past decade, outperforming surrounding suburbs by an average of 5%. For example, the Metro suburb of Castle Hill recorded capital growth of 72% compared to 49% for nearby Baulkham Hills.

This “metro-fication” of Sydney is attracting a younger demographic who favour high-density living close to public transport. With 45% of residents along the Metro aged under 35, this is driving strong demand for apartments, which now make up nearly half the housing stock in station suburbs.

The next stage, Sydney Metro West linking Parramatta and the CBD, is expected to have an even more profound impact when it opens in the late 2020s. By slashing travel times, with trips from Parramatta to Barangaroo cut from over an hour currently to around 20 minutes, this will unlock new areas for housing and trigger significant urban renewal and value uplift.

We anticipate that Metro West will spur significant price growth in suburbs like Five Dock, North Burwood and The Bays Precinct as it comes online. For investors, this makes strategic acquisitions in the ‘walk to station’ catchment of these future Metro hubs look like an attractive medium-term play.

According to a study conducted by Luti Consulting, properties within 400m of a train station see an extra 4.5% in value compared to properties that are further away.

Motorways Reshaping the City

Sydney’s motorway building spree is also reshaping the city’s geography in ways that will benefit savvy property investors.

By reducing travel times and enhancing regional connectivity, WestConnex is forecast to drive major economic and employment growth, particularly in the west. Demand for industrial property and logistics facilities around the new motorway junctions is expected to be especially strong as businesses take advantage of the improved freight network.

The proposed Western Harbour Tunnel, scheduled for completion in 2028 will also boost connectivity and capital values for prestige property markets on the lower north shore.  Suburbs like  Cammeray and Crows Nest that gain access from the tunnel are likely to see price uplifts.

Aerotropolis Ascending

Perhaps the most speculative but potentially transformative infrastructure project is the Western Sydney Aerotropolis. Anchored by the new Western Sydney International Airport due to open in 2026, the 11,200 hectare Aerotropolis precinct is forecast to attract over $20 billion of economic activity and support 200,000 new jobs.

The Aerotropolis is already triggering strong interest from property developers and investors. With the government rezoning nearby rural areas for higher-density residential and commercial development, the scope for land value uplift is substantial. According to analysis by Urbis, undeveloped land around the airport has the potential to rise in value from around $30 per sqm currently to over $1,000 per sqm as development takes off.

For investors willing to take a long-term view, acquiring a foothold in the Aerotropolis precinct offers the potential for both capital growth and attractive rental yields as the area matures into a major economic hub. However, careful site selection considering both the opportunities and impacts of the airport will be critical.

Capitalising on the Infrastructure Boom

As this whirlwind tour of Sydney’s largest infrastructure projects demonstrates, the city’s property market is being fundamentally reshaped by an unprecedented wave of investment in road, rail and aeronautical infrastructure. For property investors, this is creating once-in-a-generation opportunity to acquire assets that will benefit from significant value uplift as these game-changing projects come to fruition.

However, in a market as vast and fast-moving as Sydney, identifying and securing the right property can be challenging, especially for time-poor investors. That is where engaging an experienced buyer’s agent like Buyer’s Domain can give investors a critical edge.

With our extensive market knowledge, strategic networks and negotiating skills, we can help our clients acquire high-performing properties that are primed to capitalise on Sydney’s infrastructure-led growth. So if you are looking to invest in Sydney property, contact Buyer’s Domain today and let us help you navigate this exciting but complex market with confidence.

More Articles

Leichhardt property

Top 3 Mistakes Buyers Make

Purchasing property in Sydney, particularly in the Inner West, Eastern Suburbs and Inner City can be a complex and daunting process. Over the years, we have heard many tales of buyers making cringe worthy mistakes that could have been avoided with the right preparation and guidance: For example, the Bondi

Read More
sydney streetscapes (5)

What are the implications of the Federal Budget 2024 for Foreign Investors in the Commercial Real Estate Market

The Federal Budget 2024 introduces several measures that will significantly impact foreign investors in the Australian commercial real estate market. These measures are designed to streamline the investment process, ensure compliance with tax regulations, and attract more foreign capital while safeguarding national interests. Here are the key implications: Increased Foreign

Read More

Sign up to our exclusive property market updates