Parramatta is on turbocharge to be property hotspot: John McGrath

The development of Parramatta is on serious turbocharge right, prompting its rating it on John McGrath's top suburb picks in last year’s annual McGrath Report.

He indicated there were two key reasons:

• Commercial and infrastructure activities in and around Parramatta are leaving much of Sydney in their wake with many smart companies choosing to relocate closer to their employees 

• The activation of the river which has for many years been a forgotten waterway

McGrath recent advised he considered Parramatta among Sydney’s next major hot spots for property price rises. 

"When we talk about property hot spots, most people think of small, unknown, undeveloped pockets of a city; or perhaps areas on the outskirts set to benefit from something new, like a road upgrade or new train line.

"We don’t often think about major established centres but Parramatta is different.

"While it’s been Sydney’s second CBD for a long time, it’s now becoming Sydney’s new heart," he blogged on Switzer noting about $8 billion in construction projects are on the way along with further billions in new public infrastructure both in and around Parramatta CBD. 

"We’re talking new commercial centres, luxury residential apartments, recreational spaces, educational facilities, modernised streetscapes and major new transport."

He noted the population was changing in both size and character.

"It’s going from blue collar to white collar with more tertiary-educated locals working in higher paid jobs. 

"All of this will have a major and direct impact on property prices over the next 5-10 years."

He noted the median price for a three bedroom house in Parramatta was around $788,000 and a two bedroom apartment $586,000.

"Compare this to an inner city suburb close to Sydney’s CBD like Surry Hills, where a three bedroom house is $1.616 million and a two bedroom apartment is $950,000.

"Value, value, value!," he said.  

The most exciting development underway is the $2 billion Parramatta Square project, a three hectare site in the middle of the CBD that will comprise several new commercial and civic buildings, apartments, retailers, eateries and recreational facilities.

It will be home to a new University of Western Sydney Campus (completion due early 2017) as well as the Aspire residential tower, which will be the tallest residential building in NSW (completion due late 2019). 

In terms of public transport, Parramatta is being touted as Sydney’s ‘new Central’ with major projects to benefit the area including plans for a light rail network; the WestConnex road project; the North-West Rail Link project; and a new airport at Badgerys Creek. 

Australian and foreign developers are also recognising the enormous scope Parramatta has for new residential and commercial buildings – certainly far greater than the CBD. 

According to RP Data, Parramatta house prices rose by 27.3% in 2015 while Sydney as a whole grew by 11.5%.

"The rise of Parramatta – and its home values, is well underway!"