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Properties near Sydney Metro stations have sold for notable premiums, with houses up to 16.6 per cent and units up to 24.4 per cent, showing the public transport network’s impact on the market.
A new Domain analysis has revealed that properties within walking distance of new metro stations have sold for significantly higher prices, especially on the Sydney Metro Northwest line.
According to the Domain report entitled Next stop, higher prices? The uneven housing impact of Sydney’s Metro Northwest, houses within 400m of new metro stations sold for around 16.6 per cent more than similar homes 2-3km away – about $150,000 extra on a $900,000 home.
Meanwhile, premiums for houses 400-800m from metro stations were about 9.3 per cent higher, but beyond walking distance (800m-2km), premiums were just 2.0 per cent.
Units close to metro stations saw a larger price rise than houses, selling for 24.4 per cent higher within 400m and 12.9 per cent higher within 400-800m, compared to those 800m-2km away.
According to Domain senior economist Dr Joel Bowman, the data showed that living close to metro stations was highly desirable, offering convenience and accessibility.
“People know that living close to a metro when they're buying a place, they'll work out, how long does it take to commute to school and work, and that sort of thing,” he told REB.
“For many, the opening of the metro has been a game-changer in cutting those commute times; naturally, that just makes it a lot more desirable for people.”
Dr Bowman said that the varying premiums between units and houses were due to different buyers’ preferences, with those living in units often being less car-dependent.
“Obviously, it affects both the people living in houses and units, but those who are living in those units place a little bit more weight on being close to that public transport,” he said.
In addition, the data showed that premium sizes varied significantly across the 12 stations on the Metro Northwest line.
According to the report, the biggest gains were seen in growth areas with rezoning occurring and master-planned communities, combining with metro investment.
When it came to houses, Bella Vista saw the biggest premium, with a 39 per cent rise for houses 400-800m from the metro station.
Meanwhile, Norwest recorded an uplift of 23.6 per cent, and Hills Showground houses saw a boost of 21.4 per cent.
Contrastingly, Macquarie Park and Macquarie Centre did not see any increase in house prices, with the report attributing this to multiple factors, such as housing availability.
“These stations are dominated by commercial and industrial development, with limited houses within walking distance, while premium housing remains in quieter pockets further from the station and commercial centre,” Domain said.
Similarly, the units market also saw the largest premiums in Bella Vista, with about a 35 per cent increase for units 400-800m from the metro station, while Macquarie Park recorded no increases.
In addition, the timing of the price uplift varied between houses and units, highlighting how different buyer groups responded to new infrastructure.
During the construction phase of the metro line between 2013-19, house prices began to steadily rise, with clear progress boosting market confidence.
While house premiums peaked one to two years before services started in 2019, they have since stabilised.
In comparison, unit price increases began sooner, with premiums being evident even before the Metro was formally announced.
Domain said that stations were likely located in already desirable areas or that investors anticipated infrastructure developments.
“The premium peaked one to two years before opening, after which it eased slightly as new supply entered the market,” it said.
Dr Bowman said that given the premiums peaked before the first trains even opened, buyers shouldn’t hesitate too long before purchasing property near future metro stations.
“You also need to choose your location wisely, as not all stations are equal. So we definitely saw a big variation across those. So, get in early and choose your location wisely,” he concluded.
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