Norwest apartment market in Sydney’s Hills District reports strong price and rental growth
With housing demand projected to outpace Greater Sydney in price and rental growth, the Norwest area in Sydney’s booming Hills District has become an attractive investment opportunity.
According to Urbis’s Norwest Market Outlook Report, sales prices and rental yields for apartments within the Norwest area outperformed those in the Greater Sydney Area between 2019 and 2022.
The Urbis Report indicates that infrastructure investment and new housing development is a key factor in the strong price growth over the period, attracting more affluent residents to the Norwest area. The median unit price has increased by 6.3% per annum over the past 10 years and median sales prices experienced growth of 8.7% in the past 12 months across 328 settled transactions.
Norwest and surrounding areas are benefitting from more than $9 billion in infrastructure investment, including the North West Metro, which is soon to connect direct to the CBD and beyond. On top of that there's the North Connex and West Connex motorways, as well as Norwest area-specific education, recreation, retail, health and service facilities that are contributing to the transformation of Norwest into a vibrant lifestyle and economic hub.
In addition, the dynamic growth of Norwest Business Park (one of the largest corporate precincts in Australia, with a focus on knowledge industries, and professional and health services), will continue to drive employment opportunities and demand for quality housing nearby.
Population growth is a key factor fuelling demand for housing, with Transport for NSW forecasting Norwest’s population growing by an average of 1.8 per cent per annum from 2022 to 2037 almost doubling the NSW average of 1.0 per cent per annum. This equates to a total population of around 63,700 residents by 20375.
To meet housing demands for this forecast increase in population, the Norwest area will require an additional 4,850 dwellings by 2037 and based on the historic 10-year average dwelling completions6, it is forecast to fall short of meeting the required supply. Given the significant decline in NSW dwelling approvals since 20177, the housing shortfall in Norwest is likely to further intensify.
Developer Mulpha has, for the past 30 years, been developing the $2.5 billion commercial, retail and residential estate, Norwest Business Park, in Baulkham Hills in Sydney’s Hills District – one of the largest integrated developments in Australia.
As part of Norwest, Mulpha is currently delivering stage 1 of its proposed multi-stage vision for the ‘Norwest Quarter’. The plans for the entire Norwest Quarter precinct propose a major mixed-use development for over 2,000 residents across eight residential towers, 6,000 m2 of space for cafes, restaurants, neighborhood shops and everyday services, facilities and amenities within a vibrant village centre set within 3.8 hectares of greenfield land, up to 70 per cent of which is to be dedicated to green, open space.
Mulpha’s Head of Development, Tim Spencer said the demand for quality apartments in Norwest reflects a change in mindset in how people view apartment living.
“The demand for quality apartments will continue to grow not just due to relative affordability but also the lifestyle benefits. These include being able to live in a great location close to transport connections, education and public amenities, parks and recreational facilities, all within a vibrant community.
“This is increasingly appealing to a broad range of people from singles, couples and families, to empty nesters who want convenience and community. With people enjoying busy and active lifestyles through all stages of life, many people don’t want the responsibility, time commitment and cost of maintaining a house and garden.
“Of course, the most important consideration with buying any apartment is the quality of design and construction and that it is being delivered by a developer with a strong track record of commitment to the area and who stands behind their product.”
The first stage of the Norwest Quarter is located within 400 metres of the Norwest Metro Station and comprises two residential apartment buildings, Lacebark and Banksia, as well as more than 3,500 sqm of retail and commercial space that aims to house a full-floor commercial gym, fresh food grocer, medical services, and restaurants.
