Five suburbs set to become Sydney’s next commercial hotspots
Western Sydney is quickly becoming the new growth driver for Sydney’s commercial property market.
According to Ray White Commercial, five suburbs in the region have stood out for investors this year, each underpinned by population growth, infrastructure delivery and commercial demand.
“While many investors continue to focus on Sydney’s traditional markets, the real opportunities lie in the city’s growth corridors,” says Peter Vines, managing director of RWC Western Sydney.
“These suburbs are undergoing transformations that we haven’t seen for decades, and commercial investors who act now will benefit from both capital growth and resilient rental demand.”
St Marys
Vines says St Marys has the “same gentrifying energy” that areas like Redfern and Surry Hills had a decade ago, with a younger demographic moving in thanks to new housing in Werrington, Caddens and Orchard Hills.
“The kicker is that it will be the last Metro stop from Western Sydney Airport, connecting straight into Sydney’s rail network,” he says.
“The Aerotropolis will unlock 4448 hectares of employment land by 2030, positioning St Marys as a true gateway.”
Sydney Olympic Park
Traditionally thought of as a location to watch concerts and sport, Sydney Olympic Park has transformed into a lifestyle suburb thanks to kilometres of bike paths, green space and new residential towers.
“What’s been holding it back is connectivity, as you still have to change trains at Lidcombe,” Vines says.
“Once the Metro West opens in 2032, you’ll be in Martin Place in 15 minutes – that’s when this place takes off, and right now it’s still trading at a fraction of Inner West prices.”
Westmead
With Westmead Hospital and a Western Sydney University campus, Westmead sees an influx of people each day – and it’s only expected to rise thanks to the proposed Sydney University campus.
“Add in light rail, heavy rail and Metro West, and you’ve got one of the most connected suburbs in the country, right next to Parramatta Park and the river,” Vines says.
“Healthcare and education precincts provide stable, long-term commercial demand.”
Parramatta
Considered Sydney’s second CBD, Parramatta is a bustling metropolis. With Parramatta Square now complete and the new light rail and Metro West set to slash CBD commute times, the city is attracting people from all over Sydney.
“Investors can buy here below replacement cost today, but in five years, they’ll look back and see Parramatta was the opportunity hiding in plain sight,” Vines says.
Campbeltown
As the gateway to Sydney’s South West Growth Area, Campbeltown is attracting investment in industrial, mixed-use and retail property.
“Campbelltown is one of the most affordable commercial entry points in metropolitan Sydney, but it won’t stay that way for long,” Vines says.
The south-west currently has 114 active industrial projects worth $4.4 billion, including nearly 200,000 square metres under construction.
Vines says that each of these suburbs has a unique commercial ecosystem forming around it, from healthcare to logistics, retail and education.
“Investors who position themselves now will be well placed for long-term growth,” he says.
“Western Sydney will absorb 56.5 per cent of NSW’s population growth through 2041, creating demand for 24,000 new dwellings each year, and with residential growth comes commercial growth.”
