Those searching for fresh investment opportunities in commercial and industrial property in Sydney may benefit by looking beyond the CBD. The Hills Shire is growing fast and is situated approximately 30km north-west of the city centre, adjacent to the M2 and M7 motorways.
According to the Hills Shire Council, the municipality is rapidly becoming a centre for professional and financial services, as well as a warehousing and distribution hub. Figures published by the council have the area’s gross regional product sitting at $8.6 billion. The district’s population is estimated to be 183,735, and is forecast to surge by 35% between 2015 and 2031, bringing with it further economic growth.
The region also hosts a number of major commercial developments like the Castle Towers Shopping Centre and the Norwest Business Park, which accommodates high profile companies such as Woolworths, Resmed and Braun. Both of these developments are planning major expansions, which could offer opportunities for investors.
Growth underpinned by rail link
The region’s ascent is underpinned by the North West Rail Link. This $8.3 billion infrastructure project will connect Chatswood to Rouse Hill, 48km north west of Sydney, opening up eight new railway stations en route. The rail link is expected to open in 2019.
In conjunction with the rail link, the NSW Government plans to re-zone three areas along the rail line as Urban Activation Precincts. Bella Vista, Kellyville and Showground will be re-zoned to allow for higher density developments. These areas are expected to provide up to 28,800 new homes by 2036, including townhouses, detached homes and apartments.
The re-zoning is anticipated to increase demand for retail and other commercial developments as it stands. Property development advocacy group The Urban Taskforce is also pushing for even higher density zoning in order to facilitate more commercial space.
Now might be the time to consider investing
A report by the Invest Sydney Hills marketing group indicates that industrial and office property in the area is still a value proposition. According to the report, both purchase and leasing costs across prime and secondary categories of industrial and office properties are on average lower in the Hills District than in the Sydney and Lower North Shore municipalities.
Investors looking to add to their property portfolios might want to consider catching the train to the Hills District before the line is completed and interest in the area further increases.
When considering whether a commercial or industrial property is right for you, it’s important to seek advice from experienced and professional property consultants. At Burgess Rawson, we can help you find the right investment opportunity and manage your commercial lease.