The Sydney metro has had a profound impact on the real estate market. The new rail network has attracted young buyers seeking high-density living and vibrant café/restaurant environments, resulting in significant population growth and a substantial rise in property values in the areas along the metro lines.
According to data from CBRE and PropTrack, over the past decade, capital values in the suburbs along the metro lines have increased by 49%, surpassing the average growth rate of surrounding suburbs by 5%.
Some notable examples include Castle Hill, which experienced a 72% increase in capital values, while Baulkham Hills saw a 49% increase. Meanwhile, Crows Nest saw a 79% increase in capital values, and Cammeray recorded a 62% increase. This suggests that the real estate market in suburbs along the metro lines has shown higher growth potential.
With the progress of metro expansion, many transit-oriented development projects have been initiated, planning to add thousands of residential units, as well as educational and community facilities in these suburbs. These mixed-use developments will provide residential, retail, and office spaces, offering residents a more convenient lifestyle.
CBRE's report, "Metro Transformation in Sydney," notes that these metro line suburbs have seen a surge in apartment development projects to accommodate the growing demand for housing.
Sameer Chopra, Head of Research for the Asia Pacific region at CBRE, refers to this growth as "metroization." He believes that metroization is transforming the way people in Sydney experience life, work, and retail choices near new train stations.
According to the plan, by 2030, Sydney will have a metro rail network consisting of four lines, 46 stations, and 113 kilometers of new metro rail. This will further reduce residents' commuting times and provide more efficient transportation options.
Mr. Chopra states that early evidence of rising residential prices is already visible, and as the metro construction enters its next phase, this exceptional performance will become more pronounced. Shortening commute times will be a key driving factor.
For instance, the commute time from Macquarie Park to Barangaroo has been reduced from 53 minutes to 18 minutes, and from Pitt St to Bankstown, it has been shortened from 1 hour and 20 minutes to 30 minutes. Sydney residents using the metro gain over an hour of extra time each day, offering significant societal and health benefits. They have more time to spend with family and friends, exercise, and even work an additional hour.
Several factors related to the metro are driving population growth. Anne Flaherty, an economist at PropTrack, states that the metro provides more convenient transportation, the potential for additional infrastructure development, rising demand, and the possibility of rezoning, all of which contribute to the overall growth in property values.
The report highlights that over the past decade, the population in the suburbs along the metro lines has grown by 23%, nearly twice the growth rate of more distant suburbs.
However, it's important to note that excessive reliance on metro-driven development can bring challenges. Overexpansion of the city may lead to uneven resource allocation and traffic congestion, among other issues.
Moreover, rapid real estate development can disrupt existing community structures and cultural atmospheres. Therefore, in the process of metroization, it is essential to balance the interests of all parties, plan and manage metro routes and development projects sensibly, and achieve sustainable urban growth while enhancing the quality of life for residents.
