New research has revealed the seven suburbs in one capital city that are expected to grow due to infrastructure developments and demographic changes.
Onthehouse.com.au investigated the relationship between railway infrastructure and growth in property values in Sydney and said two key trends emerged.
“While suburbs with train stations generally experience higher growth than suburbs without, a railway station does not always mean higher property value growth,” the research says.
In addition, Onthehouse.com.au said “it doesn’t matter where in the suburb you buy, unless the suburb is popular with millennials”.
The research showed that suburbs with stations generally experience higher capital growth rates than the Sydney region’s 10-year average.
Onthehouse.com.au cited the City of Blacktown Council area as an example, where suburbs with stations had median house prices about 3.7 per cent above those without.
The research also observed that suburbs with a median age demographic below the national average of 37 presented a stronger relationship between proximity to a station and higher rates of growth.
“An example of this is Lidcombe, where properties within a 1km radius of Lidcombe Station were valued 2.1 per cent higher (about $20,000 more) than properties situated outside the radius.”
According to Onthehouse.com.au market analyst Eliza Owen, millennials are increasingly a driving force for property values.
“With a median age of 33 and with over 22 per cent of the workforce made up of professionals who benefit from easy access to the Sydney CBD, Lidcombe is a great example of how millennials are driving the change in property values in suburbs that have train stations,” Ms Owen said.
Onthehouse.com.au said there were seven suburbs to watch based on their millennials populace and coming infrastructure projects – including the heavy rail project that will connect Sydney’s north-western suburbs to the Chatswood line by 2019 and the new light rail service from the CBD to the eastern suburbs.
The table below is ranked in order of affordability, based on how many times the suburb’s median salary goes into its median property value.
Ms Owen said the rail links would continue to improve the fortunes and investment potential of these suburbs.
“The stations scheduled for these seven Sydney suburbs will not only connect younger residents with the CBD and surrounding areas, but the ensuing construction is also expected to create thousands of jobs and area development, ensuring increased residential demand,” she said.
“In Kellyville, the building and maintenance of the station, increased dwelling construction and new commercial establishments are expected to create more than 3,000 jobs in the area. In Kingsford, where a third of the residents are aged between 20 and 29, the light rail is expected to be popular with young people and students travelling to the city for entertainment and work outside study hours.”