Norwest apartment market in Sydney’s Hills District reports strong price and rental growth, according to Urbis

With housing demand projected to outpace Greater Sydney in price and rental growth, the Norwest area in Sydney’s booming Hills District has become an attractive investment opportunity. According to Urbis’ Norwest Market Outlook Report (Urbis Report), sales prices and rental yields for apartments within the Norwest area outperformed those in the Greater Sydney Area during the reporting period.

The Urbis Report indicates that infrastructure investment and new housing development is a key factor in the strong price growth over the period, attracting more affluent residents to the Norwest area. The median unit price has increased by 6.3% per annum over the past 10 years3 and median sales prices experienced growth of 8.7% in the past 12 months across 328 settled transactions.

Norwest and surrounding areas are benefitting from more than $9 billion in infrastructure investment, including the North West Metro, soon-to-connect direct to the CBD and beyond; the North Connex and West Connex motorways; as well as Norwest area-specific education, recreation, retail, health and service facilities, that will help to transform Norwest into a vibrant lifestyle and economic hub.

In addition, the dynamic growth of Norwest Business Park (one of the largest corporate precincts in Australia, with a focus on knowledge industries, professional and health services), will continue to drive employment opportunities and demand for quality housing nearby.

Population growth is a key factor fueling demand for housing, with Transport for NSW forecasting Norwest’s population growing by an average of 1.8 percent per annum from 2022 to 2037 almost doubling the NSW average of 1.0 percent per annum. This equates to a total population of around 63,700 residents by 2037.

To meet housing demands for this forecast increase in population, the Norwest area will require an additional 4,850 dwellings by 2037 and based on the historic 10-year average dwelling completions6, it is forecast to fall short of meeting the required supply. Given the significant decline in NSW dwelling approvals since 20177, the housing shortfall in Norwest is likely to further intensify.

Leading property developer Mulpha has, for the past 30 years, been developing the $2.5 billion commercial, retail and residential estate, Norwest Business Park, in Baulkham Hills in Sydney’s Hills District – one of the largest integrated developments in Australia.

As part of Norwest, Mulpha is currently delivering stage 1 of its proposed multi-stage vision for ‘Norwest Quarter’. The plans for the entire Norwest Quarter precinct propose a major mixed-use development for over 2,000 residents across eight residential towers, 6,000 m2 of space for cafes, restaurants, neighborhood shops and everyday services, facilities and amenities within a vibrant village centre set within 3.8 hectares of greenfield land, up to 70 percent of which is to be dedicated to green, open space.

Mulpha’s Head of Development, Tim Spencer said the demand for quality apartments in Norwest reflects a change in mindset in how people view apartment living.

“The demand for quality apartments will continue to grow not just due to relative affordability but also the lifestyle benefits. These include being able to live in a great location close to transport connections, education and public amenities, parks and recreational facilities, all within a vibrant community.

“This is increasingly appealing to a broad range of people from singles, couples and families, to empty nesters who want convenience and community. With people enjoying busy and active lifestyles through all stages of life, many people don’t want the responsibility, time commitment and cost of maintaining a house and garden.

“Of course, the most important consideration with buying any apartment is the quality of design and construction and that it is being delivered by a developer with a strong track record of commitment to the area and who stands behind their product.”

This is a sentiment echoed by Norwest apartment purchaser, retired professor Lindsay Wasson.

Having first purchased an apartment in Mulpha’s Watermark building overlooking Norwest Lake in 2016, Lindsay and his wife recently sold this for a tidy profit and are now purchasing a 168 sq/m (internal) apartment in Norwest Quarter with full length balcony along the northern side.

“Our apartment building in Norwest Quarter is all-electric and has double glazing, solar roof panels, high-rating insulation, inspirational water and energy efficiency, EV charging in car spaces and the list goes on.

“Combine these great elements (earning a NatHERS rating of 7.8) with Mulpha’s outstanding build quality and the confidence we have in Mulpha, buying into Norwest Quarter is probably the best decision we have ever made.

“We are excited by the development and absolutely relaxed about the purchase. We know we are buying from a quality developer who has earned our trust over many years. While this purchase is not for investment purposes, we also know that this future-proof building can only increase in value as an exemplar of design excellence and high-level sustainability.

“The lakeside location provides a wonderful, relaxed ambience with walks through great scenery on pathways designed for leisurely strolls as well as more energetic exercise.”

Lindsay says the convenience and transport links of Norwest were a major consideration.

“We are within easy reach of excellent restaurants, shops, services and health facilities, either by car or Metro, which will only get better. With a walk of just over ten minutes, we can reach Norwest Metro Station and have access to half of Sydney. A direct Metro trip to Barangaroo and Town Hall, in just over 35 minutes, is a wonderful drawcard.

“The entire Norwest area has been thoughtfully developed, magnificently landscaped and is maintained with care. Buildings, particularly those by Mulpha, exude quality, while the entire neighbourhood and community has a pride and spirit that is very attractive.

Norwest investor Mani Sharma said the suburb is showing great dynamic growth with strong economic development, including a thriving business park, excellent connectivity and community amenities, making it a prime location for investment.

“I would highly recommend purchasing with Mulpha due to their track record in development, their attention to detail and comprehensive community engagement and planning, which combine to ensure a valuable and lasting investment.”