Castle Hill tipped as next hot spot for property investing
GUEST OBSERVER
Investing in Sydney’s real estate market has been a tough call in recent years, with ever-increasing prices putting the squeeze on returns and meaning that investors need to do their due diligence more than ever before.
According to CoreLogic, the median apartment price in Sydney has increased by a massive 106.2% since 2008 and is now at $750,000.
With prices at this level, investors need to be savvy and on the look-out for ways to increase capital gains by identifying upcoming ‘hot spots’. There is huge potential in some pockets of metropolitan Sydney, set to benefit from significant future development and infrastructure projects.
Sydney’s burgeoning North West in particular should be high on an investor’s radar.
Nestled within the Hills Shire, Castle Hill is a suburb where future growth has been forecast. Key early indicators of growth lie within the current and future plans for commercial and residential developments within the region.
In accordance with The Implementation Plan proposed by the New South Wales Government, some 33,000 new homes are to be developed in North West Sydney. Estimates by the Hills Shire Council predict the population in Castle Hill will grow by 49.53% by 2036.
It is undeniable that Castle Hill is an area set for long-term growth and ticks all the boxes for investors.
To cater for the growth in population infrastructure developments are also currently underway including the $900 million upgrade of Castle Towers and the $8.3 billion North West Rail link.
Upon completion the Castle Towers redevelopment is set to generate 2,373 jobs and create an enhanced community hub. The North West Rail link is expected for completion in 2019 and will also increase the efficiency of transport connecting residents from Castle Hill Station to Martin Place Station in around 30 minutes.
To combat rising property prices in Sydney investors are strongly encouraged to continue to seek out growth areas and identify “hot spots” to realise the future potential, rather than to try to buy into markets that have already hit their peak.
Residential real estate remains the investment of choice with solid medium and long-term returns and those who are waiting in anticipation for market conditions to change may miss out on solid investment opportunities.
Ian Bennett is Director, Colliers International
