Sydney’s challenging market conditions, flanked by a burgeoning population and housing affordability issues, has given rise to growth areas in the city’s outer rim.

South West Sydney has been earmarked as a key growth corridor, with the NSW government committing $3.6 billion in its Western Sydney Infrastructure Plan over a 10-year period – funding infrastructure initiatives such as the construction of Sydney’s second airport at Badgerys Creek, due to kick off at the end of this year, and a north-south train line to the new airport.

Edmondson Park, Menangle Park, Oran Park, Bardia, Leppington and Harrington Park are some of the emerging suburbs set to reap major benefits from the financial injections.

Plans for four major rail and road projects include an outer orbital motorway from Box Hill in the north to Menangle in the south; a western Sydney freight line, and a road link known as the Castlereagh Connection from the M7 toll road to the Bells Line of Road.

So, why is the South West being cherry-picked for expansion?

Ripe for development
Property developers are heading to the South West, capitalising on the area’s potential for building whole new communities, while striving to meet growing demand from buyers looking for affordable housing in Sydney’s outer areas.

One development that’s responding to the need for more amenities and affordable housing is Menangle Park, a master-planned community of more than 4,000 lots and featuring local marketplaces, entertainment spaces, parklands, modern education centres and sporting facilities.

Eric Li, Chief Executive Officer of developer Dahua Group Australia, says the availability of land and the scope for infrastructure and communities made the South West a natural progression for development.

“Dahua recognised several years ago the potential of the South West and purchased land parcels in Menangle Park and Bardia totalling around 4,000 land lots. Over the next 10 years more than 65 per cent of Sydney’s growth is expected in the Western Sydney region,” Li says.

“The private sector, state and federal governments are all collectively pumping billions of dollars into the area, which is fast becoming the epicentre of Sydney’s development activity. Hundreds of jobs are being created, new businesses are opening, home frames are everywhere and several cranes are visible across the region.

“Major infrastructure projects are either about to start or have already started. New roads, hospitals, schools, sports and recreational facilities and education precincts will service population growth in the area.”

Li says the combination of smart, integrated planning and committed funding have accelerated the process of expansion.

“Well positioned master planned communities, which are located in the South West’s fastest growing suburbs, are already reaping benefits,” he says.

“South Western Sydney’s growth corridor is rapidly changing. It has taken many decades of planning to create what will become an engine room in Australia’s economic growth and affluence.”

A tale of three cities
According to a city plan unveiled by the Greater Sydney Commission late last year, Badgerys Creek and surrounding suburbs has been tagged – along with Parramatta and the traditional CBD in the east  – as a ‘third city’ of Sydney.

Designed to address the growing population, particularly in Sydney’s west, the Three Cities plan proposes that by 2056, Sydney will be divided into three interconnected cities, housing 8 million locals, most of whom will be within a 30-minute commute to jobs and services.

“Whether the Three Cities plan is rolled out or not, in order to tackle housing affordability and the changing demographics in the west, the need for more affordable housing options in South West Sydney is a hot topic,” says Nerida Consibee, realestate.com.au’s Chief Economist.

Data from realestate.com.au pinpoints that while the broader Sydney market has softened considerably in the last 12 months, there’s been a steady demand in property views for suburbs such as Menangle Park, Oran Park, Campbelltown, Appin and Spring Farm in Sydney’s South West.

“These suburbs are bucking the downward trend in that respect and are still popular with property seekers,” says Consibee. “The main reason is affordability, with median house prices in this area well below the Sydney average of $885,000.”

South West Sydney is attracting growing interest from homebuyers looking for affordable housing, and comparing median prices in the corridor with Sydney’s inner suburbs, it’s not hard to see the appeal of heading west.

According to recent data from realestate.com.au, the median price in Oran Park is $665,000, while in central Surry Hills it’s $899,000. Campbelltown in Sydney’s South West has a median price of $475,000, compared to Paddington’s $883,000.

As published on RealEstate.com.au