Infrastructure and development seem to be the buzzwords in NSW at the moment, with one real estate identity predicting they are both set to drive further growth in the state's capital in the coming year.
Douglas Driscoll, CEO of real estate agency Starr Partners, said that infrastructure projects and rezoning initiatives are set to drive capital growth in Sydney’s suburbs well into the new year, despite recent signs of the market slowing.
Mr Driscoll recently identified Leppington, St Marys and North Sydney as the three suburbs most likely to experience significant value growth in 2016.
Property values in Leppington, located 55 kilometres south-west of the Sydney CBD, are set to benefit further from recent zoning changes, according to Mr Driscoll.
“More rezoning will occur throughout 2016 so Leppington will become popular for land sales. Being south of Badgerys Creek, I anticipate it to be the next suburb to genuinely emerge. It will be close enough to the new airport but far away enough from it that plane noise won’t be an issue,” Mr Driscoll said.
Leppington values have already risen significantly in 2015, with the suburb having featured among the nation’s best-performing suburbs for capital growth over the year, according to CoreLogic RP Data.
The state government recently announced the rezoning of enough land in Leppington for nearly 30,000 new residents.
The current median price in Leppington is $675,000, representing a 12.22 per cent annual increase, according to CoreLogic RP Data.
St Marys, 45 kilometres west of the CBD, is another of Mr Driscoll’s nominations for top performers in 2016.
According to Mr Driscoll, the planned Badgerys Creek airport and associated infrastructure is also set to continue driving growth in the area, in particular the prospect of new rail infrastructure.
“St Marys is one of the last great Sydney ‘true blue’ suburbs. With the state government’s move to reserve a rail corridor there for a direct route to Badgerys Creek airport, it’s definitely one to watch. The suburb is already well-established, will become very well connected, and is already connected to the M4 and M7, and will be close yet just far away enough from the airport. And above all else, it’s affordable,” Mr Driscoll explained.
The current median house price in St Marys is $550,000 – a 29.41 per cent year-on-year increase, according to CoreLogic RP Data.
Moving closer toward the CBD, the traditional commercial hub of North Sydney is set to see a boost in values arising from the recent confirmation that it will be home to a new metro train station, according to Mr Driscoll.
“North Sydney is really going to take off in 2016. There is some redevelopment happening in the area presently and this, combined with the new metro train lines under construction and the second tunnel under Sydney Harbour, as well as the arrival of Coles and Woolworths, means it’s a real one to watch.
“Right now, North Sydney doesn’t have a firm identity, it’s not sure what it is or what it is supposed to be, but I anticipate it will find its feet and form its own identity – it’s a nice area, close to the water and to the city."
The current median house price in North Sydney is $1,726,300 – a 7.89 per cent increase year-on-year.
Units are valued at $750,000 – a 13.63 per cent increase.