The NSW government released a range of documents outlining its plans for the development areas around the new airport at Badgerys Creek in Sydney's West.
The documents, which are on public exhibition for comment between 6 December 2019 and 28 February 2020, are:
- Draft Western Sydney Aerotropolis Plan (Draft WSAP)
- Western Sydney Aerotropolis Discussion Paper on the proposed State Environmental Planning Policy(SEPP Discussion Paper)
- Draft Western Sydney Aerotropolis Development Control Plan (Draft DCP) Phase 1
Over the coming decades, the Aerotropolis will become a thriving economic hub for the emerging Western Parkland City, delivering new jobs, homes, infrastructure and services for people in the region.
The Aerotropolis will develop progressively across ten precincts (See image) that will include a range of land uses such as business, homes, schools, parks and environmental conservation.
For institutional investors the key zones are;
Enterprise Zone
This zone will permit land uses that supplement or complement the functions of the city and the Airport as a 24-hour transport hub. The zone will enable uses typically associated with employment lands, supporting a range of commercial and industrial sectors that will benefit from proximity to the airport such as distribution centres, landscape material supplies and vehicle repair workshops. Residential development and other noise sensitive uses such as schools and hospitals will not be permitted in this zone.
Mixed Use Zone
This zone will permit mixed use developments that integrate residential and commercial uses. This zone will ensure higher density residential and employment areas are located in places with high amenity. This includes having access to high frequency public transport, good connections to the State road network, open spaces including parks and waterways, pedestrian and cycle linkages and public squares, and will ensure residential uses are well outside of aircraft noise contours.
Key Precincts to Watch
The key areas where these zones are currently planed are in the ;
- Aerotropolis Core – which comprises land predominantly south east of the airport in Bringelly, and
- Northern Gateway – which comprises land predominantly north of the airport, on the western side of Luddenham Rd and south of the Twin Creeks Estate.
CMA has been capturing real estate transactions activity through RESourceData and our information has shown that land in these areas has been selling in 2019 between $130 – $300/psm, whilst land further east in Austral (already being developed for housing) is selling for $420 – $460/psm.
Risks
The obvious risks with investment in the precinct is with respect to timing, planning outcomes and development charges. Early adopters in the region have seen land values rise considerably, however some have also been burnt by acquiring ahead of the structure plans only to find out that the use of their land is limited by other issues (eg infrastructure uses etc).
Planning
With respect to timing, the NSW Government hopes to finalise the Western Sydney Aerotropolis Plan, Phase 1 DCP and the Aerotropolis SEPP (including rezoning of initial precincts) by mid 2020. The intention is to then move to adopt the initial precinct plans (and update the Development Control Plan Phase 2) by late 2020 with State and local Infrastructure Contribution requirements identified, after which specific Development Applications could be assessed.
Infrastructure Charges
Broadly, the means for securing development contributions through the planning process are:
- State infrastructure contributions
- local infrastructure contributions
- value capture
These contributions will have a considerable impact of the value of land and there are considerable risks to these groups who acquire land at high prices, prior to these contributions being known.
Other Key Infrastructure
The plans for the heavy rail and M7 are now well known however the Sydney Metro Greater West Stage 1 alignment and station locations are only likely to be confirmed in 2020 or 2021. Subject to their announcement, further precinct planning will reflect the alignment and the location of stations. Two stations are expected on the Airport site with other potential station locations under investigation.
Next Steps
The exhibition period is open until 28 February 2020 .
Visit www.planning.nsw.gov.au/aerotropolis to find out more.
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