Property values in Sydney’s west are expected to take off with the announcement of a second airport at Badgerys Creek earlier this week.
Principal of Raine&Horne Liverpool Vince Labbozzetta predicted property values would grow by five to 10 per cent per annum between now and 2016, when building is slated to commence.
“It's been a long time coming and this announcement is set to jet-propel the Liverpool economy and create plenty of jobs in construction and ancillary industries,” he said.
In addition, he predicted the project would put further pressure on the local rental market.
“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,” he said.
However, Douglas Driscoll, CEO at Starr Partners, told Smart Property Investment's sister publication, Real Estate Business, the building of the proposed new airport was “bittersweet” for the western market.
“There are not many places, anywhere in the country, growing as fast as the south west corridor of Sydney, and clearly demand for property will increase due to more jobs coming to the area, but the noise pollution the airport will produce is also a big consideration,” Mr Driscoll said.
“There is already an over-demand for property in the surrounding area.”
According to Lachlan Walker from Place Advisory, major infrastructure projects can result in “overnight” growth in surrounding suburbs.
He points to the construction of the Airport Link in Brisbane’s north as an example of this phenomenon.
“Some of those northern suburbs experienced an overnight price growth once the tunnel was completed,” he said.
“There was a bit of depression in the market during construction, but once completed there was an immediate rise.”
Mr Walker added that when you combine long-term capital growth, population growth, infrastructure investment and employment opportunities in an area, you tend to see high demand.
“As soon as you get high demand, you get price growth,” he said.