RiskWise Property Research has forecast solid capital growth in the medium to long-term for property located in Parramatta despite a recent downturn in the Sydney real estate market.
According to RiskWise chief executive Doron Peleg, the view has been formed on the back of Parramatta being transformed from what he described as a less desirable district for investors to a suburb of choice due to a new initiative highlighting three distinct areas of Sydney.
In order to address the growing population, and the associated problems of unaffordable housing and significant congestion, the Greater Sydney Commission has been formed to establish a three-city plan over the next 20 years.
The three cities will comprise the traditional central business district, to be known as the Eastern Harbour City, greater Parramatta, to be known as Central River City, and Western Parkland City, which will include suburbs such as Camden, Campbelltown and Liverpool.
The move is considered to be a boost for Parramatta, which is already widely regarded as a second CBD and as such an employment hub of Sydney.
Lending further weight to the region’s property investing prospects is the Greater Sydney Commission’s statement that public and private investment in a number of infrastructure projects will lead to a major transformation of the area.
“In the past residents had to commute to the Sydney CBD to work, but things have changed and the entire area has been developed with additional infrastructure projects, which means more employment opportunities and a swelling population,” Peleg said.
“Because of this, capital growth for houses is projected to be strong in the medium and long term, particularly due to strong projected demand, mainly by owner-occupiers.
“However, units in the short to medium term do carry a higher degree of risk due to the current oversupply.”
He pointed out expectations of solid capital growth in the residential property space are strengthened by predictions the Central River City could experience a population increase from 1.3 million to 1.7 million over the coming 20 years.