Moorebank to support continued land value growth in Sydney

The completion of stage one of Moorebank Intermodal and commencement of stage two is likely to help land value growth rates in Outer West and South West Sydney over the next 12 months, according to Colliers International’s recent report – Sydney’s second airport: The catalytic effect of transport infrastructure.
Over the previous 12 months land values in the Outer West and the South West sub markets have increased by 24 per cent and 21 per cent, respectively.
Other factors set to help maintain double-digit growth over the coming year include developments under the Western Sydney Infrastructure Plan and the continuing shift of industrial users to the west of Sydney. Relocation is proving popular due to relatively cheaper land values and rents, larger sites with custom-built facilities and stronger infrastructure links with new facilities coming soon.
“Industrial land values across the Sydney market have recorded positive annual growth over the past few years, and have entered double-digit growth since March 2014,” said Sass J-Baleh, Manager – Research, Colliers International in the report. “More recently, land values have soared, with annual growth rates in the high 20 per cent since the end of 2015. Record growth rates are expected to continue across all of Sydney’s sub markets. However, there are different fundamental drivers for this growth between the inner sub markets and the outer submarkets.”
Growth in the inner sub markets was found to be driven by stock scarcity due to rezoning, a situation that is not expected to reverse as land previously zoned as ‘industrial’ is being developed into residential infrastructure including dwellings, roadways and train stations.