The detailed announcement of a major infrastructure project this week has the potential to see house prices rise by up to 10 per cent, according to a well-known real estate group.
The NSW state government’s metro project has the potential to dramatically boost property values, according to the executive chairman of Raine and Horne, Angus Raine – with Crows Nest, North Sydney, Camperdown and Newtown set to benefit the most.
The state government this week confirmed the location of six new metro stations across the city’s CBD and north shore, with new stations to be built at North Sydney and Crows Nest.
Mr Raine believes that prices on Sydney’s north shore – specifically Crows Nest and North Sydney – will jump by five to 10 per cent following the announcement.
“The announcement of the additional metro stations is an excellent announcement for the lower north shore and often a major infrastructure improvement of this nature can result in an immediate spike in real estate values,” Mr Raine said.
“It’s quite possible that the shrewd money will see the benefits of the additional stations and how they help link Crows Nest and North Sydney to jobs in the Sydney CBD and Barangaroo as a massive positive.
“As such, an immediate spike in lower north shore values of 5-10 per cent is not out of the question.”
Mr Raine cited recent developments in North Sydney as a sign the suburb is finally starting to outgrow its commercial origins.
“North Sydney had become a 1970s-like commercial relic, which was virtually people-free after 7pm on a weeknight and on weekends. Without any retail outlets, there was little reason to come here outside traditional work hours,” he said.
“Thankfully the CBD has embarked on becoming a vibrant mix-used precinct with something like 3,000 new residential apartments set to be completed between 2013 and 2019. Now with the likes of Coles investing in North Sydney’s growth and the additional rail infrastructure, long-term apartment price growth above the city’s annual long-term average of around 7 per cent is possible."
The government is yet to confirm the location of the seventh metro station – with the current options being Sydney University and Waterloo.
If Sydney University is given the go ahead, property values in Newtown and Camperdown would be likely to receive an immediate boost, according to Gerard Hill, principal of Raine and Horne Newtown.
“The Inner West has some of the most congested roads in Sydney, so anything to get cars off our roads would be great for the environment, business and long-term property prices,” said Mr Hill.
“If Sydney University is added to the Sydney metro grid, I’d expect an immediate impact on prices in Newtown and Camperdown, which could jump by as much as 10 per cent very quickly.”