Sydney’s second airport will prompt a population and infrastructure injection that will boost the real estate market, from the suburbs surrounding Badgerys Creek and south towards the Southern Highlands.
Demand for residential, commercial and industrial property will spike once work begins at the 1700-hectare greenfield site, and the property industry has called for detailed planning to cater for growth.
Property investment advisor Troy Gunasekera said the new airport would draw a new pool of residential tenants and owners to western Sydney long-term.
A Deloitte Access Economics report suggested a western Sydney airport would generate between 12,645 and 19,982 jobs for the region and up to 31,736 jobs for greater Sydney between 2020 and 2050.
“It’s not just the airport itself that creates jobs – it’s the long-term car parking, catering,” Mr Gunasekera said, adding the airport would create another employment hub for Sydney, on-par with Parramatta.
Property prices around the western suburbs could rise 5 per cent to 10 per cent annually between the airport announcement made on Tuesday and commencement, said Vince Labbozzetta, co-principal of Raine & Horne Liverpool.
“We already have low rental vacancy rates in Liverpool. This announcement will squeeze vacancies further and push up rents by up to $50 to $100 a week as more construction workers move to the region.”
Raine & Horne also expects the airport to have an impact on property prices in the Southern Highlands once the first stage of the airport is finished, given the drive time will only be about 30 minutes. The need for freight hubs and warehousing around the new airport will also increase demand for commercial and industrial property. CBRE national director of industrial brokerage Jason Edge said institutional groups would look to the west for investment opportunities.
The surrounding infrastructure needed to support the new airport would also increase surrounding home values as access to more jobs and commercial centres improves. That infrastructure cannot be built soon enough, according to the Urban Development Institute’s NSW chief executive Stephen Albin.
“By establishing an airport at Badgerys Creek Sydney’s west will turn from a political to an economic powerhouse – creating new jobs and transport infrastructure in close proximity to where the bulk of Sydneysiders choose to live,” he said.
“After decades of inaction, the state and federal governments need to get on with the job of delivering infrastructure in preparation for the airport as soon as possible,” he said. Mr Albin said used the announcement as an opportunity to lobby for the state government to release its Metropolitan Plan for Sydney and state-wide planning reforms, the two documents which will map out key growth areas and allow for future residential and commercial property development.
“Clearly the planning of Sydney’s metropolitan area will now need to factor the new airport into where jobs are located and how connecting infrastructure is planned,” Mr Albin said.
“Research is needed on how an airport can maximise jobs.”