Western Sydney is poised to show good growth over the short, medium and long term.
A major driver will be the new Western Sydney Airport (WSA) at Badgery’s Creek and the boost this will give to local employment and transport infrastructure. Construction is expected to commence in 2018, with Stage 1 completed by 2026.The Western Sydney Aerotropolis (link), a multi-billion-dollar development to complement the upcoming WSA is predicted to become Australia’s third-largest economy by 2036.
The building and construction of WSA will involve 11,000 construction jobs on a $5.3 billion build. However, the the full value of the airport will be realised by the creation in surrounding suburbs of the “Aerotropolis” – a new urban environment built around the airport to speedily connect time-sensitive suppliers, manufacturers, distributors, and business people to distant customers, clients, and marketplaces.
The new city is expected to deliver more than 12,000 smart jobs, educate 10,000 students and provide over 3,000 homes, upon completion. It will be surrounded by 10,000-hectares of cutting-edge industries, businesses and homes that are currently being planned. It is understood that more than 250 local and international business leaders are currently seeking to secure their place at the 10,000-hectare Luddenham site. Earlier this year, property group Celestino commenced construction on its $5 billion Sydney Science Park on a 250-hectare site in Luddenham – the first stage of development at Sydney Science Park includes a mix of commercial, residential, education and open space.
In addition, as the population increases massively in Western Sydney (the rest of Sydney is constrained) new jobs will arise to service the population itself, as well as the industry associated with the Aerotropolis.
Over time, the airport will become one of Australia’s most significant airports, driven by Western Sydney’s population and growing economy (now the third largest in Australia), Sydney’s overall position as Australia’s most populous city and largest international trade hub, and increasing capacity constraints at Kingsford Smith Airport (KSA).
Within 50 years WSA is expected to accommodate 82 million passenger movements per year; double the number that KSA does today and more than Heathrow Airport in London.
One of WSA’s most significant advantages is that it will be curfew-free. The possibility for 24-hour connectivity to domestic and international markets opens up the opportunity to attract a number of sectors to locate around WSA. The most promising sectors are not only those that will be enhanced by proximity to WSA but also those already poised for growth:
- Logistics and distribution: Creating a logistics hub around WSA would support Australia’s growing airfreight task – expected to double by 2030 – and enable greater productivity and competitiveness within the logistics sector itself
- Food manufacturing and export: Overseas demand for Australian perishable foods is the greatest driver of outbound airfreight. Creating a food hub near the airport to cluster advanced food-manufacturing, value-add processing, coldstorage and packing, offers both better connectivity into premium markets and closer proximity to other parts of what can be a sensitive supply chain.
- Medical technologies: An emerging health and education precinct in Liverpool has ambitions to become a hub for the development of health-related technology. The precinct’s core advantages, such as the presence of Liverpool’s leading health and education institutions, will be further enhanced by the additional connectivity to domestic and overseas suppliers and markets provided by WSA and the rail and road network being developed to support it.
- Defence and aerospace: The NSW Department of Industry is looking to establish a defence and aerospace hub at WSA to support the growth of industry – an objective of both the NSW and Commonwealth Governments. The NSW Government has secured the commitment of its first anchor tenant: the global defence company Northrup Grumman – an American global aerospace and defence technology company who was the fifth-largest defense contractor in the world in 2015.
- Education: Western Sydney Aerotropolis Set to Get ‘World Class’ Uni (PDF) The Aerotropolis has been envisaged as a hub for education and leading industries. Vice Chancellors from the University of Newcastle, University of NSW, University of Wollongong, and Western Sydney University have agreed to collaborate in order to deliver a new world-class aerospace, engineering and science institution in Western Sydney. Stage One of the new campus is anticipated to open in 2026, close to the completion of the new $5.3 billion airport.
WSA is expected to provide significant economic benefits. In addition to the 11,000 direct jobs generated by its construction, it is projected that there will be 28,000 direct and indirect jobs created by the early 2030s and nearly 120,000 in the long term.
It will also be the cornerstone for further investment in transport infrastructure to enable accessibility to the airport from within the region and the rest of Sydney. The confluence of additional transport infrastructure and business investment will in turn open up further commercial and residential development opportunities in the areas around the airport.
For a more detailed review of Western Sydney potential, please refer to reports by:
- Western Sydney – Shaping Future Cities Blueprint – Deloitte Access Economics 2015 (PDF)
- PwC Report – the Gateway to Sydney’s Aerotropolis (PDF)
Review economic property indicators for Sydney generally (link)
National & International economic indicators related to property
Review national and international economic indicators related to property,