The following article was published just over a year ago, but worth looking at again as it identified 25 suburbs in Sydney where the government intends to rezone to allow high density housing to be developed - https://www.news.com.au/finance/real-estate/sydney-nsw/high-density-housing-coming-to-25-sydney-suburbs-after-plans-leaked/news-story/1457c787235420456e4da04060769e9f
The idea is about improving the ability for people to access more affordable housing in good areas, which will bring about additional housing supply in those areas, most likely through additional unit blocks built near train stations.
Land inside 1200 metres of the following major train stations will be rezoned - Bankstown, Bella Vista, Crows Nest, Homebush, Kellyville, and Macquarie Park.
New development is expected to be occur from 2027, which the core intent to help alleviate NSW's housing crisis.
As this process is occurring, it will be worth considering the impacts this will have to these areas - with additional units coming in, it means there will be an increase supply of housing (particularly apartments), which is likely to stifle the growth of real estate in these locations.
Lets run the suburb capital growth report and vacancy rate report (for units) in 6 of these suburbs to see how they currently stack up as the rezoning process is in progress. We will aim to run the same report in a future post to see what the actual impacts were, however it is very likely that rental vacancies will have increased, and suburb capital growth would have diminished.
* Bankstown
* Bella Vista
* Crows Nest
* Homebush
* Kellyville
* Macquarie Park
As you can see in the capital growth chart, there has already been almost zero capital growth of units/apartments in all 6 of the above suburbs during the last 10 years. With additional supply of units in these areas, it's likely that this will continue for some time yet.
In the vacancy rates report, you will see that rental vacancies are fairly tight in these areas (all except 1 are under 3%), however this is likely to increase over the coming years as we see new unit block developments in those locations.
Would you still consider investing in units in these areas? While it may be good as a PPOR for a first home buyer, you may want to think twice as an investor.
Keep note of these types of data points and insights as you decide where you want to invest by using our excellent suburb property research tools - https://www.propertydirector.com.au/choose-plan.
