In fact, property values have grown in tandem with the rail link.
However, to understand exactly how positive the impact on the local commercial market has been, it’s important to look back to the recent past, to the post GFC period of 2008.
The Hills commercial property market hit rock bottom in late 2010/ early 2011 and remained fairly stable for the ensuing 18 months to two years.
Real signs of growth started to surface from mid-2013 onward.
It was very steady growth, which wasn’t necessarily driven by the new rail link alone, but rather the low interest rates and an increase in business and investor confidence.
Where the rail link really started to come into play was when the trucks taking the enormous concrete rings for the tunnels were on our local roads and people were starting to witness the construction first hand.
The rail link continues to have an increasing impact on property prices as we near its completion, with stations coming out of the ground and works in surrounding areas becoming more visible day by day.
One area that has seen tremendous growth in property values is our world class Norwest Business Park, which offers various commercial and retail precinct and will be serviced by two new train stations on Brookhollow Avenue and Celebration Drive.
The park provides business space for small, medium and large size organisations ranging from sole traders to multination brands such as Woolworths.
Since 2015, average sale rates in Norwest Business Park have grown by as much as 70 to 80 per cent, with one sale recently setting a record at over $12,000 per square metre for showroom space.
This is a real testament of the expected value of this area moving forward.
Another major contributor to the aforesaid growth is supply and demand of business space in the Hills area across commercial, industrial and retail markets.
There is a reasonable supply of potential sites within close proximity to the two train stations in Norwest Business Park that could be developed. However, given that they are never-to-be-repeated locations, we don’t expect them to yield much new supply in the next 12 to 18 months.
The most recent development released in NBP is The Esplanade, which is an exciting new mixed development of commercial and residential space and first of its kind for the park.
Developers Capital Bluestone will again raise the benchmark by providing a world class vertical community.
Looking to the future, I believe price growth in the Norwest Business Park will continue on a positive trajectory for the next 18 months should stock levels remain this low, as it falls short of meeting demand and the area continues to offer great investment opportunities to existing and new players in the market.
Expect a nice steady growth for months to come.
Alex Hazari is Director, Taylor Nicholas Hills. Taylor Nicholas was established in 1990 and has become Sydney’s Prime Property Specialist, with seven offices, including the Hills District, handling all facets of the commercial and industrial property segment. Visit:
www.taylornicholas.com.au
