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Speak to any property expert and
you’ll often find investing is about
good old supply and demand. It’s
where more jobs are being created,
putting pressure on rents and prices, and
infrastructure is also popping up, making
access to and from the area much easier.
Western Sydney has just potentially been
handed a ticket to an even more exciting
future, thanks to the announcement of a
second Sydney airport. The location, at
Badgerys Creek, is currently nothing more
than a big patch of dirt.
But it’s a multibillion-dollar project,
backed by new roads and tens of
thousands of jobs – a massive 60,000
in fact. That’s a lot of employment, job
demand and, in turn, rental demand and
competition for newly listed property.
No surprise, real estate agents are
flying high and already talking up
this opportunity. It’s about plain old
convenience for buyers – or should that
be, plane old convenience. In essence,
a second airport, which will be located
about 56 kilometres from Sydney’s CBD,
will make it so much easier to get to
Western Sydney and even the Southern
Highlands. If it proves to be successful,
investing in Sydney’s west could perhaps
become the most exciting journey a
property lover has ever taken.
¿ ABOUT THE AIRPORT
The actual airport itself still has a long
way to go, more than a decade before it’s
operational. It will initially be a single-
runway project and expand over time,
similar to airports in Canberra or Hobart.
Australian Airports Association chief
executive officer Caroline Wilkie says
there’s still a huge amount of consultation
and planning to be undertaken before a
second airport becomes a reality.
“There’ll be extensive technical studies,
environmental assessments, community
consultation and planning approvals
required, as well as the delivery of
supporting infrastructure such as road
links and utility services,” she says.
One of the obvious benefits when it
comes to the airport is creating jobs in
Sydney’s west, and loads of them. New
roads leading to the airport are expected
to create 4000 jobs, while the actual airport
itself will create employment for many
McLennan Steege Smith and Associates
senior property valuer, Robert Randall,
says it’s those jobs that will be the real
bonus for the region.
“It will create more employment and
outer Sydney is supposed to have higher
unemployment, so that might decrease,”
“But it would depend on trade skills
and there might also be a work shortage,
because of the number of trades we have.
Tradesmen at the moment have plenty
of work and so is there going to be a
shortage of trades out there? I don’t know.”
On the other hand, Destiny founder
Margaret Lomas says although 60,000 jobs
might be created, the long-term impact is
what investors should focus on.
“Out of those 60,000 jobs, how many are
there at the end of the project?” she says.
“In mining towns we see unemployment
rates shift up and down wildly. What must
be known is how long these jobs will last
and what’s the end result for creation of
new jobs. This is where investors must
time things right – if they buy in or on the
back of the new job creation, there’ll be
increased rental demand, but once the
project ends, that de mand falls off. An
investor must ‘dis-invest’ before the end of
Infrastructure Partnerships Australia
chief executive Brendan Lyon adds the
project will also be important in terms of
decentralising employment zones across
Sydney, while Minister for Transport
Gladys Berejiklian says the South West
Rail Link, which opens in 2015, is likely
to be extended to Badgerys Creek down
the track. It’s a logical next step, although
its configuration would depend on the
ultimate shape of the terminals and
After already enjoying a boom, Western Sydney investors have every reason to be on cloud nine.
A new airport, extended rail service and more jobs could help keep capital growth moving upwards.
THE STATES // NSW
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