Industrial property investors who purchase in certain suburbs of Sydney could add significantly to their wealth by the end of the decade, thanks to land values expected to double in some areas.
Growth areas across Sydney include the western suburbs of Mulgoa, Luddenham and Orchard Hills along with Cobbitty and Leppington, according to projections from property investment firm Custodian.
Custodian says, “longer term, it’s hard to go past the outer west in and around Badgerys Creek where the NSW Government is building the new Western Sydney Airport. This is a $5.3 billion infrastructure project that will support 14,000 jobs during the construction phase alone.”
It notes these suburbs are surrounded by multiple job hubs and have good existing and future planned infrastructure.
Nils Miller, Chief Executive Officer of BC Land, agrees. “The development of Western Sydney International Airport is attracting a range of businesses that will create an employment hub in the City of Bradfield, in the Badgerys Creek precinct, that will in turn lead to residential developments nearby.”
“The businesses being developed around the new airport started out being centred around aviation, but the area is now attracting a wider set of businesses.”
“These businesses will employ a range or people and they and their families will require accommodation nearby.”
Western Sydney International Airport will be the largest logistics airport in Australia and the first in New South Wales with no curfew, with flights taking off and landing 24 hours a day, seven days a week. The International Air Transport Association (IATA) has already issued Western Sydney International Airport its three-letter code ‘WSI’. It will cater to more than 25,000 domestic flights carrying four million passengers a year and flights are expected to operate as soon as the airport opens in 2026.
Bradfield City Centre will be located within the Western Sydney Aerotropolis and is being built on Government land near Badgerys Creek Road, Bringelly.
BC Land is developing an industrial hub on 35 hectares at Badgerys Creek.
“Work is progressing well with the airport,” said Mr. Miller. As of June 2023, more than 50 per cent of the airport was already built, with foundations poured for the 3.7 kilometre runway and work on the terminal and carpark had started. Some 25 million cubic metres of earth had been moved around the site – making it Australia’s biggest earthmoving project. Tunnel boring machines were also in the ground working on the metro line, which will run from St Mary’s to the new airport. The site will be connected to the M7 motorway via the M12 which is in planning.”
“Our own 35-hectare site on Lawson Road and Pitt Street, one of the two access roads to the airport and one of the closest sites to the aerotropolis, is already receiving expressions of interest from partners and tenants.”
“We already have interest from providers of freight services and logistics along with light manufacturers seeking to service these as well as other aviation services.”
“These businesses are realising that they can occupy premises for less than half the price they are up for at Mascot airport,” added Mr. Miller.
He forecast these business developments would soon be followed by residential developments, as people increasingly seek to be no more than 30 minutes from their place of work.
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