While the eastern suburbs have historically been a popular choice for property investors, recent data shows that the Western Parkland City, Liverpool, and Penrith are emerging as hotspots for growth potential. These suburbs are benefitting from major projects such as the construction of the new Western Sydney Aerotropolis, a hub for industry and innovation.
The Aerotropolis is expected to generate over 200,000 jobs in the Western Parkland City area, located within the Liverpool and Penrith local government areas, and will attract local and global companies to the enormous potential of the Western Parkland City and the airport that serves it. This hub will also help boost the city's existing industry sectors and businesses. Additionally, the region is estimated to have 1.5 million more people living there by 2036, highlighting the need for future planning and development.
With that level of investment, job and population growth, the region is likely to see a resilience in the property market despite external economic factors.
Moreover, some properties ( carefully researched ) in these areas have subdivision potential, which means that investors can purchase a large property and subdivide it into smaller lots, increasing the potential for capital gains. Additionally, these suburbs are close to key infrastructure such as transport links, schools, hospitals, and shopping centers, making them attractive to both investors and tenants.
One of the key strategies for investing in these suburbs is to focus on properties that are affordable to hold in a higher interest rate climate. The cash rate has been rapidly increasing over the last few months, with many feeling the effects of the subsequent interest rate rises. As interest rates rise, it becomes more challenging to maintain cash flow, so investors need to be mindful of their borrowing capacity and factor in potential rate hikes when making investment decisions.
Overall, investing in the right suburb can offer significant long-term gains in the Sydney property market. However, it's crucial to do your research and seek professional advice to make informed investment decisions that align with your financial goals and risk profile.