Proposed Polycentric Sydney Offers Opportunities For Savvy Investors
With Sydney’s population forecast to grow by 2.1 million over the next 20 years, dramatic planning changes are underway promising great opportunities for long-term property investors, especially in the West.
Released earlier this year, the Annual Demographia International Housing Affordability Survey confirmed what we all know – Sydney property is ‘severely unaffordable’ for middle-income households. It’s more expensive than London and New York. In fact, Sydney has the honour of being second on the podium of the most unaffordable cities in the world in which to buy a home. Hong Kong was first.
It’s no secret that Sydney can no longer continue to grow and prosper if the housing supply crisis continues, however estimates propose a further 725,000 extra homes needed over the next 20 years. In late 2015, the Greater Sydney Commission (GSC) was established in order to address the situation to ensure that the housing supply can be met.
The GSC claims a collaborative ‘one government’ approach that seeks to lead and guide planning for development, transport and housing to ensure Greater Sydney can continue to focus on three main themes: productivity, liveability and sustainability.
In November 2017, district plans for the six main areas of Sydney were released outlining targets for a range of action for improving housing choice, diversity and affordability. Public submissions on these district plans have now closed with final proposals expected to be released late this year.
Opportunities For Investors
The district plans will have far-reaching implications and will drive opportunities for growth in Greater Sydney over the next 20 years, and businesses, developers, investors, land owners and councils will each be uniquely affected. For developers or buyers investing in property, it’s important to understand the proposed changes in order to identify potential long term investments.
A major part of the Commission’s approach is the reimagining of Greater Sydney as three great ’30-minute cities’ whereby commute times to work, play and study within an hour would be achievable.
The three cities would be Eastern Harbour City, the Central Parramatta River City and a Western City around the new Badgerys Creek airport.
The polycentric set-up of the three city centres will serve as a guide for future decision making and priorities of both government and industry. To name a few examples:
- The Central District will seek to improve connectivity and improve height restrictions on high rise in the city centre.
- The West Central will perhaps undergo the most change with a proposed 30,000 square metre business precinct of commercial, residential and mixed use space. The addition of a new West Sydney University Campus will see the face of Parramatta change dramatically as the newly regarded ‘central city’ of Sydney.
- The West District may develop existing anchor institutions while constructing an aerotropolis around the new Western Sydney Airport. There will also be more focus on the Penrith health and education precinct, and the Blue Mountains tourism area to take advantage of increased numbers of people expected to travel through the Western Sydney Airport.
For more information visit Greater Sydney Commission.
The best way to maximize your return now is to have the right team of experts to help you understand what type of property will put you in good stead in the future.
Cohen Handler’s team of expert buyers agents are specialists in finding the right property for you at the right price. If you are interested in purchasing an investment property and would like to know more about rental yields, contact us now.