Infrastructure the Key to Identifying Sydney Property Hotspots

June 5th, 2014

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Sydney’s property market stagnated for almost a decade up until 2003. Since then, however, property prices have seen solid growth. According to commentators, the biggest factor in this growth has been infrastructure.

Infrastructure spending remains the single most critical element behind growth in residential property prices. It has been suggested that proximity to airports is irrelevant. Railway lines and roads are much more important, particularly if these are new roads and train lines that are being constructed.

During Sydney’s lost decade, even Adelaide had more infrastructure development. However, with the overdue spending on infrastructure finally being carried out, more roads, rail lines, and amenities such as hospitals are expected to drive up the value of properties.

In 2012 there were low prices and little competition for investors, and this was considered the best time to buy in a long time. Yet there are still strong opportunities for investors. Regional NSW hotspots include Dubbo and Wollongong, which offer affordability and strong potential for growth. Rouse Hill will be benefiting from the North West Rail Link and northern Sydney will have a new link motorway.

While in itself the new airport (if it goes ahead) will not necessary boost property prices, Sydney’s new airport at Badgerys Creek may lead to an infrastructure expansion that will drive up property prices in the surrounding suburbs