Sydney’s Infrastructure Development Projects (And Three Tips for Finding a Good Development Site in Sydney)
The Australian government invested heavily in the infrastructure of the entire Emerald City. Today, some of the best development spots are the suburbs just outside Sydney’s CBD.
More than a few Sydney suburbs are ready to benefit from infrastructure developments planned by the government, with investors already showing renewed interest outside the CBD area.
Suburbs like Gregory Hills and Oran Park, part of Southwest Sydney, call out to property developers and look like valid development hotspots.
Western Sydney also generates a lot of excitement with projects in place to build a new international airport out west and with the development of the Sydney Science Park.
But why so much interest in the areas outside the CBD?
For one, the government pledged an investment of $3.6 billion for Western Sydney region’s infrastructure plan. Although it’s a decade-long investment, consider the fact that Western Sydney International Airport alone should create more than 28,000 new jobs.
As the government calls it, it’s a transformational infrastructure project. It will have massive potential to generate economic activity in the region, thus also increasing the need for residential property development.
It also means that by 2031, the western region can expect around 300,000 new residents to move in.
The Sydney Science Park is a particularly interesting smart city project. With $5 billion pledged already, it’s a venture in revolutionising development, education, research, and innovation right in the heart of Western Sydney.
It can make Western Sydney one of the most attractive regions in the country, therefore in high demand with homeowners and tenants.
The recent housing slump raised some concerns. However, the number and scale of the infrastructure development projects in place can quickly elevate Western Sydney into becoming a more popular location.
Investors watch the western region market closely to see the progression of the new development hotspot. Developers may soon have their hands full and have a wide range of development projects.
Although Western Sydney seems to receive most of the optimistic forecasts, it’s not the only area outside the CBD that’s poised for growth.
Finding ideal projects and locations for property development is still a matter of doing the research. Taking advantage of the following tips can give you an edge over the competition and increase your profit potential.
The Three Tips
Tip #1 – Look for Public Transport Investment
Reliable infrastructure is necessary as factors like transportation heavily influence housing and office space demand. Therefore, there’s always a strong correlation between development hotspots and public transport investment projects.
Sydney’s metro area has the strongest apartment development pipeline. And new trends suggest a shift towards densification in areas with well-planned transport nodes.
For example, Parramatta is outside the popular CBD area, yet, it’s also Sydney’s primary development hotspot for residential apartments.
It’s because it also has a new light rail system in the works. And once completed, it will become the main western anchor of the Metro West project connecting the suburb to the Sydney CBD.
Schofields and Rouse Hill are two more outer suburbs with direct links to the Metro North-West City and the South-West. And the new connection will make it easier to commute to shopping centres, schools, and office spaces. As a result of this boost in transport capacity, demand for apartments grew considerably, as did investor and developer interest.
To put it simply, people don’t want to move into areas with inferior public transport nodes. They need a good infrastructure in place to get to work, school, get fast access to health care, and so on.
That’s why development hotspots always have close ties to existing or ongoing transportation projects, especially in Sydney.
Tip #2 – Always Conduct a Pre-Purchase Feasibility Study
Whenever someone buys a property, they always want to identify any hidden costs associated with the purchase. Things like building inspections and pest inspections are necessary to determine the profitability of the deal.
It shouldn’t be any different looking at things from a property developer’s perspective.
Most agents don’t market development sites as they should. Even in development hotspots, there’s often an air of uncertainty regarding a lot’s profitability. That’s why doing a pre-purchase feasibility study is critical.
A pre-purchase feasibility report indicates the development potential of a site. It’s also a necessary document to acquire additional information from local councils and planning staff.
Also, consider the following:
Responses and advice from council representatives may often differ, and any answers to your questions could take weeks to reach you. By conducting a pre-purchase feasibility study, you can learn more about the site you want to develop without having to jump through hoops or worrying about the accuracy of council replies.
It’s an investment worth making, even if you have your eye on prime real estate lots. After all, the public interest in a zone doesn’t indicate much about the potential of the land.
Tip #3 – Focus on the Suburbs Tipped for Growth
One of the best tips ever is to always focus on suburbs with considerable growth potential. To find the most attractive development hotspots, you have to focus your attention on suburbs tipped for growth.
Due to many infrastructure projects in the pipeline, suburbs outside the CBD now look better than ever.
Windsor and Richmond are great examples.
Not only do they sit in picturesque locations, but they also have a high concentration of hybrid workplaces. The laidback lifestyle also attracts many homeowners, which should have developers tingling.
It’s also worth noting that there’s little to no traffic congestion in these suburbs. The proximity to the highway and train makes it easy for residents to commute to work in the CBD area.
Mount Druitt is 38km away from Sydney CBD. Post-lockdown, the suburb became one of the busiest regions in Western Sydney. The total investment in infrastructure and city transformation projects will amount to $1.5 billion.
Moreover, there are plans in place to rezone thousands of homes, which will likely increase the market value. That’s why demand is already up for both housing and development projects.
Beacon Hill, Cronulla, Bexley, and other Sydney suburbs show the same pattern – massive infrastructure investments, decongested traffic, and an increase in housing demand.
Don’t Rush Your Decision
Clearly, there’s no time like right now to invest in property development. But with so many opportunities on the table, it’s best to take your time. Do your due diligence and focus your attention on factors that ensure profitability.
Keep in mind that transportation always affects housing and office space demand. Infrastructure projects also affect the appeal and profitability of development hotspots, as well as the competition between developers.
But, whatever you do, don’t forget that a pre-purchase feasibility report can tell you a lot more. The marketing of development sites isn’t always advantageous to property developers. So the only way to ensure you have your eyes set on the right spot is to get the full story. At the very least, you can get a more accurate report.
Do you need help conducting research and finding prime development sites with existing or public transport, or nearby exciting infrastructure projects? Book a demo of our Archistar platform and access all the development data you need such as listings, rail lines, transport nodes identification, and other infrastructure networks.