Demand for more homes in the Sydney area will present greater opportunities for investors, according to a Sydney property expert.
Angelo Piazzetta, CEO, The Property School, says the forecasted growth in Sydney's population of five million by 2020, means high demand for more homes and solid investment in new and improved infrastructure.
He believes that additional infrastructure can limit the amount of cars on the roads and reduce sound pollution, and it can also reduce travelling times and, as a result, increase buyer interest in particular areas.
"The F6 extension underground from Sutherland to the airport has a massive impact on the beachside suburbs of Sandringham, Sans Souci, and Brighton le Sands - because if you can reduce the amount of traffic going to those places by even half, it becomes a much more attractive option for people wanting to live in those areas. Sutherland, which is a regional centre, becomes a more focal point," says Piazzetta.
Out of Sydney's current 4.3 million people, 22% of all households are occupied by one person. This is a figure that Piazzetta says is due to increase to 30% by 2031, representing a boost of 300,000 single-person homes in the 24-year period.
Piazzetta says not only may new and improved infrastructure stimulate buyer interest, but, more importantly, it must occur to meet demand.
"By 2031, we're expecting 300,000 more single-person homes, and the plan is only to release land for 220,000 new homes; this means that we effectively need 420,000 new homes in existing suburbs - well, where are they going to go and how are people going to get to and from those areas?" says Piazzetta.
He says the NSW Government Metropolitan Strategy long-term infrastructure plan (which aims to accommodate for the predicted increase in population and demand for housing) will include the following and many more;
· Further rail infrastructure for the Epping Hills rail line
· Future plans to expand capacity on the M5/M5 east to cope with increased freight from Botany
· Plans to link the F3 to the M7, and the M2 and the F3, plus widen the F3 and F5
· The establishment of further infrastructure support for the technology corridor in northern Sydney
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