Onthehouse.com.au has conducted new research that reveals seven potential Sydney suburbs to watch, based upon approved train and light rail developments that will connect the North West and Eastern Suburbs to the Sydney CBD, and based upon demographic profiles.
Following in-depth analysis into the relationship between railway infrastructure and growth in property values, we have identified two key trends in the market, including:
- While suburbs with train stations generally do experience higher growth than suburbs without, a railway station does not always mean higher property value growth;
- It doesn’t matter where in the suburb you buy, unless the suburb is popular with millennials.
The research showed that suburbs with train stations generally experienced higher capital growth rates than the Sydney region’s 10-year average, such as the City of Blacktown Council, where suburbs with train stations had median house prices around 3.7 per cent above those without.
It was also observed that suburbs with a median age demographic below the national average of 37 years presented a stronger relationship between proximity to a train station and higher rates of growth.
An example of this is Lidcombe, where properties within a 1 km radius of Lidcombe Station were valued 2.1 per cent higher (approximately $20,000 more) than properties situated outside this radius.
The graph below presents the relationship between Lidcombe property prices and train station proximity:
With a median age of 33 and with over 22 per cent of the workforce made up of professionals who benefit from the 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.
With upcoming rail construction that will connect Sydney’s North Western suburbs to Chatswood rail line by 2019, along with an extended light rail service to the Eastern Suburbs, we have identified seven suburbs to watch based upon their millennial populace and upcoming rail links.
The table below is ranked in order of affordability based upon how many times the suburb’s median salary goes into its median property value:
|Suburb||Median Age||Median House Price||Median Unit Price||Upcoming Rail Line||Predictions|
|8 Year % p.a.||8 Year % p.a.|
|2||Rouse Hill||33||$916,969||$585,850||North West||12%||3%|
|3||Bella Vista||36||$1,188,193||$735,484||North West||5%||4%|
|4||Baulkham Hills (Norwest)||37||$915,708||$660,768||North West||6%||2%|
|5||Paddington (Moore Park)||35||$1,719,000||$652,675||Eastern Suburbs||8%||5%|
The upcoming stations scheduled for these seven Sydney suburbs will not only connect younger residents with the CBD and surrounding areas, but the ensuing construction is expected to create thousands of jobs and area development, ensuring an increased residential demand in the area.
In Kellyville, the building and maintenance of the station, increased dwelling construction and new commercial establishments are expected to create over 3,000 jobs in the area.
Whereas in Kingsford, where one third of the residents fall between 20-29 years old, the light rail is expected to be popular with young people and students travelling to the city for entertainment and work outside of study hours.
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