After decades of debate on whether or not to build a second airport in New South Wales, the Government has announced that the long-awaited airport will be built at Badgerys Creek. The semi-rural district approximately 50 kilometres west of central Sydney has become an investor’s heaven, but others are weary of the hype.
propertybuyer Managing Director and REINSW Buyers’ Agent Chapter Chair Rich Harvey said the new airport announcement represents an exciting time for property buyers in NSW, however he wants buyers’ agents to tread carefully.
“The uncertainty for buyers’ agents over infrastructure projects means that we have to be very careful in advising clients not to bank on seeing the airport project delivered exactly on time,” Mr Harvey said.
“Many property speculators may buy up land or specific properties in anticipation of the development, but investors also need to be very careful not to tie up capital in a building or land that could be adversely affected by noise or not achieve the expected capital growth due to delays.”
Failed infrastructure projects
Over the years various proposals have been suggested and rejected. Although constructing a runway out to sea was never a serious contender, other plans to build Sydney's second airport in Canberra or Newcastle were considered but abandoned for various reasons.
“Even though the project has been announced, it is a major development and could be delayed. It is similar in some ways to the North West rail link. Each participating government did not commit enough funds, so it was delayed several years,” Mr Harvey said.
“Other projects that were announced, re-announced and then eventually started include; the Inner West Light Rail, Eastern Suburbs rail, WestConnex motorway, and M1 and M2 tunnel connections. All great plans, but they take time and large amounts of money.
"However, in addition to the airport itself, related infrastructure development for roads and rail lines will give property buyers in the region plenty of opportunity for capital growth.”
Planning is set to start immediately and construction to begin in 2016.