Three families could reap about $50 million after listing nearly 40 hectares of land near the future Western Sydney Airport.
The three assets – in Luddenham, Kemps Creek and Badgerys Creek – are being sold separately and are all owned by families living on the properties.
The average land rate for the three sites is about $1.3 million a hectare.
The 17.4 hectare property at 752-810 Luddenham Road, Luddenham, is tipped to sell for more than $20 million, according to market sources. It last sold for $1.15 million in 2002, Domain Group data shows.
CBRE selling agent Thomas Mosca said the Luddenham property was particularly appealing for investors as it was located in the “initial precincts” to be rezoned as “flexible employment land” by the end of 2019.
According to a Department of Planning document released August, flexible employment land will be a new zoning category to “support the increasing freight task and changes in global freight requirements”, supporting the Western Sydney Employment Area, which is already “a key freight and logistics hub”.
Mr Mosca said that the future M12 corridor, which cuts through the site, “impacts part of the land” and the property could potentially be acquired for that motorway.
Meanwhile, a 18.6 hectare property at 1383-1411 Elizabeth Drive, Kemps Creek could fetch about $20 million, after trading two years ago for $6.2 million.
The price of the Kemps Creek property is understood to be slightly lower than the Luddenham site because the latter has the certainty of being rezoned before the end of next year.
While Kemps Creek falls outside of the initial precincts, it too has been earmarked as flexible employment land to be rezoned in the future.
The third property, a 2 hectare parcel at 10 Martin Road, Badgerys Creek, is the closest to the future airport out of the three listings. It is scheduled to go under the hammer on October 20 with price expectations understood to be about $4.5 million.
The owners paid $1.35 million for the block in 2013.
“I’d say it’s similar to buying 5 acres of land 950 metres from Mascot Airport,” Mr Mosca said.
“It’s going to suit the main road-user that’s going to benefit from high exposure.”
Mr Mosca said the properties are expected to appeal most to developers, funds and wealthy investors. However, many may not be ready to pay what vendors are seeking.
“Landowners do want to sell but at extreme premium prices. There’s a gap between what the vendors are looking for and what the market is looking to pay at this stage. The market is coming off a little bit and it’s harder for people to get finance,” he said.
“You’re asking people to hold it for potentially five years before they see any growth out of it (and) before they can build, with services being a key factor in that as well.”
Mr Mosca said the entire “Aerotropolis” region around the Western Sydney Airport was facing a major transformation.
“I think it’s going to be the future of Sydney really, it’s a blank canvas to develop a super city and I see that’s what they’re doing: they’re carefully planning everything that is happening out that way, there’s a lot of larger corporations that are investing money up that way. People want to see this thing take off.”
Frank Olivieri, who is also selling the properties, said everything around the future airport was still zoned for some form of rural use, but was already seeing “a large amount of demand”.
“Every time there’s a key milestone or an announcement, the level of demand increases and we expect that demand to increase further as the years go by,” he said.
The prospects of Sydney’s second airport have been discussed since the 1940s, and Mr Olivieri said farmers and locals who have owned the land for a long time will be the key beneficiaries when it is finally built.
“It stands to reason with the new major airport that all of the major land planning around that is going to mean some major changes and create a whole new economy out there.”
Construction on the airport site began in September and is due to open in 2026.