Parramatta has gone through some huge changes and capital growth, and the medium to long-term outlook is optimistic for houses in the area.

RiskWise Property Research shows while in the short-term there is a risk involved with property, mostly due to lending restrictions, in the long-term solid capital growth is forecast.

RiskWise CEO Doron Peleg said while in the past Parramatta had been considered a ‘less desirable area’ for investors and a ‘compromised decision’, with the only positives being affordable housing and the CBD only 23km away, it had now become a ‘suburb of choice’ thanks to its changing face as a ‘sub-city of Sydney’.

Parramatta has delivered very strong capital growth of 101 per cent for houses and 67 per cent for units in the past five years.

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Roy Halabi, Principal of Guardian Property Specialists Parramatta told WILLIAMS MEDIA the suburb is going through a lot of changes with infrastructure, light rail, and residential developments.

“Parramatta is growing and will continue to grow, and become a new CBD rather than a town centre,” said Mr Halabi.

“It is to the extent that people that can’t afford to live in Parramatta and there is a flow on effect to surrounding suburbs like Westmead and Rose Hill.

“We are looking at a price difference of $200,000 to $300,000 for houses and $100,000 to $200,000 for units, between Parramatta and suburbs like Westmead and Rose Hill.”

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Mr Peleg said “In the past residents had to commute to the Sydney CBD to work but things have changed, and the entire area has been developed with additional infrastructure projects which means more employment opportunities and a swelling population.”

“Because of this, capital growth for houses is projected to be strong in the medium and long term, particularly due to strong projected demand mainly by owner-occupiers,” said Mr Peleg.

“However, units in the short to medium term do carry a higher degree of risk due to the current oversupply.”

Mr Halabi said there isn’t an oversupply as of yet, however the problem is price and therefore flow on into neighbouring suburbs.

“It’s not the volume, it's affordability.”

"Parramatta is definitely open for business and on the rise.”

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