Sydney's future growth means big things for real estate
Sydney, already Australia's biggest city, is tipped to grow even further over the next decade ...
Sydney, already Australia's biggest city, is tipped to grow even further over the next decade or two. By 2031, Sydney is projected to have a mind-boggling 1.3 million more people and 545,000 more homes. As the New South Wales government prepares to deal with these momentous shifts, potential investors and residents alike would do well to pay attention.
To get a sense of the sheer size and scope of Sydney, consider the fact that its 4.76 million residents comprise a whole two-thirds of the NSW population. Seventy-eight per cent of the state's total growth in 2012-13 was Sydney's own growth. The central city alone, where 480,000 daily visitors shop, work, study or entertain themselves, is responsible for 7.5 per cent of the total Australian economy and nearly one-quarter of the NSW GDP. Even without the coming projects to expand and beautify the city, therefore, Sydney is a budding hub for commercial real estate.
To deal with the city's future growth, the NSW government is embarking on an ambitious plan. This will involve building 27,500 new homes annually across the city (keep in mind that only an average of 14,500 new homes have been built over the last five years), creating 625,000 new jobs, investing in new infrastructure and expanding public transportation. It will also involve the development and transformation of a number of key areas, such as the Sydney Harbour, the Parramatta CBD and the Anzac Parade corridor.
Exciting projects already under way
This is not only good for investors. It will make Sydney a more liveable, beautiful and interesting city for both current residents and for those who have always thought about relocating to the city and its surrounding suburbs, but hadn't dipped their toes yet. In fact, there are already a number of exciting projects either completed or under way to beautify and improve the city.
Take, for instance, the construction of a second airport in Badgerys Creek. According to Prime Minister Tony Abbott, this initiative stands to create 4,000 jobs during its initial construction, and a further 35,000 jobs through its development over the next 20 years. Or take the development of Bangaroo, a large-scale urban development where apartments, parks and public spaces will sit alongside commercial retail property like shops, cafes and restaurants.
These are just two of the major projects among many more that will help Sydney move into the future. With such exciting developments on the agenda, any investors or buyers looking to get in on the ground floor would do well to chat with a real estate specialist.