Ignore what you've heard. The Australian dream isn't dead.
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Oct 3, 2017
Ignore what you've heard. The Australian dream isn't dead.
Buyers need to shift their thinking in order to keep the dream alive.
Sydney’s property market has seen incredible growth over the last decade. With the population of The Harbour City expected to continue to increase – to 6.2 million in 20 years and 8 million by 2056 – the housing market as it currently stands is under immense pressure.
The median house price is well over a million dollars and out of reach for an increasing number of first home buyers and families. A recent survey by the University of Melbourne showed that home ownership in Australia among couples with dependent children had dropped from 55.5 per cent in 2002 to 38.6 per cent in 2014.
In these circumstances, the ‘great Australian dream’ can seem out of reach for many.
To keep that dream alive, buyers need to shift their thinking. They need to begin to view Sydney as a wider area and look to larger trends when deciding where to buy, namely long-term planning trends, connectivity, and livability.
A tale of three cities
Last year the NSW Government announced a plan in conjunction with the Greater Sydney Commission which divides Sydney into three key areas; Eastern City, Central City and Western City.
The idea is to create a diverse city, with greater housing prospects, by developing and creating three city hubs within the Greater Sydney region.
We already know plenty about what the Commission referred to as the ‘Eastern City’. Encompassing the areas primarily understood to be ‘Sydney’ – the Harbour Bridge, Opera House and existing CBD – this area is the source of much of the price increases which have locked out many of today’s buyers.
‘Central City’ — compromising the Greater Parramatta area — will see a total investment of $10 billion from both private and public sectors over the next five years, with an additional 41,000 people expected to call Parramatta home. This area has long been on the map of investors and buyers’ agents who recognised it as an area of growth and got in early.
The ‘Western City’, centred around the new airport, is set to be the third city in Greater Sydney. It’s an area that has already experienced significant population growth and if current trends continue, over 50 per cent of Sydney’s population will live west of Parramatta by 2036. It is here where the opportunity now lies for buyers looking for value from Sydney’s housing market. Buyers looking for the next ‘Parramatta’ to invest in will do well in looking towards the third city.
Connectivity is the key
While the growth of Sydney, and a strategy to provide new areas for housing development is a positive step in preserving the Australian dream, the growth and appeal of the Western suburbs as an affordable housing alternative is hugely dependant on connectivity.
For the proposed Western City, the Badgerys Creek airport is expected to be the foundation of driving the growth and potential in the surrounding areas of Camden, Campbelltown, Liverpool and Penrith.
Infrastructure is key and if not planned correctly, will create too much of a divide between where people work and where they live. This is something which Sydney has occasionally struggled with in the past, and its vital planners must learn from previous mistakes.
With 2 million people living within 30 minutes of Parramatta, the ability to reach the Eastern City from Central City in minimal time will be key to ensuring the growth of the region and that people working in the East can easily and conveniently live in the West.
Trains, light rail and freeways will all become increasingly important if the housing stock currently planned for Western Sydney is to support the broader economic and employment trends of the city.
Planning for livability
Much of the inflation in housing prices in the Eastern suburbs has been driven by the livability factors offered in the area.
Despite the relative lack of ocean proximity in the West, the Greater Sydney Commission’s plan promises improved urban, cultural and civic infrastructure to ensure that resident’s needs are well catered for.
These Western growth areas need to be developed with livability and quality of life at the forefront, including a focus on the Parramatta River and South Creek as key lifestyle prospects. With greater land affordability and the potential for greenery and open spaces, these areas offer a significant opportunity to build a greener future.
Search smart
Despite the seemingly endless strain on housing affordability in many parts of the city, Sydney home buyers can still find the affordability, transport infrastructure, health access, and recreational resources they crave.
By searching smart, looking beyond the immediate landscape and considering the future of our city and where it could lead, the Australian dream of a picket fence and backyard can remain within reach.
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