Hubs in Sydney’s north west have been tipped for significant growth on the back of an office development boom by a senior economist.
Speaking at a Frasers Property conference, Jason Anderson, senior economist at property advisory MacroPlan Dimasi, identified Ryde and Putney as suburbs with the strongest investment potential, with young professionals driving demand in the area.
“Sydney’s north west is experiencing a bit of a boom in office development. Hubs at Macquarie Park, North Ryde and Sydney Olympic Park are becoming increasingly attractive for businesses as they relocate to more affordable sites away from ever increasing commercial rents in the city,” Mr Anderson said.
“Over the next three years, our research forecasts a boost to rental prices by 6.5 per cent per annum and a rise in property prices by 5.5 per cent per annum - so now is the best time for investors to buy.”
He attributes the growth to the strong demand of apartments in the area, many which are also marketed to international students attending Macquarie University.
While this growth is seen across the whole of Western Sydney, he explained to Smart Property Investment that Putney and Ryde are experiencing a change in the composition of the workforce.
There’s the expansion of the office work force, Mr Anderson continued, and there’s also a lot more overseas migrants, both permanent and those with 457 visas coming into the area.
“Those people coming in - and even the permanent migrants - are tending to live in rental housing. They have high incomes so they can afford higher grade properties,” he said.
In addition to the changing demographics in the area, continued undersupply in Sydney has also driven demand.
“If you look at the last 10 years, there’s been shortages everywhere in Sydney, but now supply is starting to improve,” Mr Anderson said.