Public Sector Investment and Infrastructure are two of the most significant factors driving property prices in Australia. Let’s explore how these drivers affect the property market, using one of the largest projects Australia has ever seen – the Sydney Metro.
What is the Sydney Metro?
The Sydney Metro is Australia’s largest public transport project, with four key segments that are either completed or under development. Each of these segments comes with mind-blowing investment figures. Let’s take a look at the key projects:
- Sydney Metro City and Southwest: This section just opened in 2024 and will cost $20.5 billion once fully completed.
- Sydney Metro West: Set to open in 2032, this project will cost a whopping $25.32 billion.
- Sydney Metro Northwest: Opened in 2019, costing $9 billion.
- Sydney Metro Western Sydney Airport: This is the segment tied to Sydney’s second airport.
This multibillion-dollar investment is not only the largest in Australia’s public transport history but also a key player in boosting property prices.
The Impact of Infrastructure on Property Prices
We’ve always said at Teach Me About Property that infrastructure drives property prices, and the Sydney Metro is a prime example of this. The question is, how does a new metro station impact the surrounding property values?
Case Study 1: Castle Hill vs Baulkham Hills
One great example is Castle Hill, a suburb with a metro station. Over the last 10 years, property prices in Castle Hill have increased by a staggering 72%. Now, let’s compare that to its neighbouring suburb, Baulkham Hills, which does not have a metro station. Over the same 10-year period, property prices in Baulkham Hills have only risen 49%.
This stark difference shows that suburbs with metro stations are outperforming their neighbours in property value growth.
Case Study 2: Crows Nest vs Cammeray
Another example is Crows Nest, where the Sydney Metro has recently opened a station. Over the last decade, Crows Nest has seen an impressive 79% growth in property prices. In contrast, nearby Cammeray, which doesn’t have a metro station, has experienced a more modest 62% increase.
These numbers paint a clear picture: suburbs with metro stations are seeing property prices rise significantly faster than those without.
The Bigger Picture
As this project continues to expand across Sydney, more suburbs will benefit from improved infrastructure. Areas with new metro stations will likely see property prices grow faster than neighbouring areas without this level of investment.
The Sydney Metro project is a clear example of how infrastructure can significantly boost property prices. As more stations open, it will be fascinating to watch how the property market in these areas evolves.
