The announcement of a major infrastructure project has continued to spur on price growth in one region, with one real estate agency reporting a massive spike in investor interest.
The federal government’s decision to approve construction of a second Sydney airport is reported to be having a massive impact on investor activity in that region, in particular St Marys and surrounding suburbs.
Peter Diamantidis, sales manager at Raine & Horne St Marys, has reported seeing a new wave of investors at open for inspections following the announcement that Badgerys Creek would be the location of Sydney’s second major airport.
“Since Badgerys Creek Airport was announced, St Marys and surrounding suburbs have witnessed an influx of investors,” said Mr Diamantidis.
Reports of a train connection between St Marys and the new airport being on the cards has added to the flow of interest, despite no plans being confirmed.
“St Marys is approximately 19 minutes from the new airport and it seems that a train to Badgerys Creek is on the drawing board,” Mr Diamantidis speculated.
The sizeable timeframe on these projects means that the region is geared for long-term capital growth, according to Mr Diamantidis.
“St Marys is a hotspot for many developers, investors and owner-occupiers as they can see the potential afforded by the region and its expanding infrastructure, which underpin long-term capital growth.”
According to CoreLogic RP Data, the 12-month median house price growth in St Marys is 26.7 per cent, with unit values growing by 20.1 per cent.
Despite this, Mr Diamantidis said that property in St Marys still represents a low-entry point for many investors, compared to rapidly escalating prices in places like Sydney’s inner-west.
“In comparison [to those suburbs], it’s possible to pick up a house in St Marys for $550,000 or a unit for $330,000 and still enjoy a positive rental return,” he said.
Mr Diamantidis explained that changes to development guidelines mean that new supply is set to hit the market, with an increase in medium-density housing expected.
“The new LEP has attracted developers to St Marys to build apartments and townhouses."
He added: “We have seen the development of our first high-rise building of six levels in St Marys, and there are plans for similar buildings that have been lodged with council.”