Rental properties in Liverpool are among the smartest property investments in Sydney. Despite prices across the Sydney market falling, the Liverpool market remains strong due to several key fundamentals. In many ways, it just happens to be in the right place at the right time. In other ways, local and state governments have worked hard to put the area in this position of strength.
So, why exactly is Liverpool’s market so strong? Let’s look at the things that continue to make Liverpool such an alluring proposition for investors.
A booming population
Liverpool is at the very beginning of a huge period of growth. Between now and 2035, the population of the greater Liverpool area is expected to double to 325,000. The reason? An almost unprecedented level of job creation.
Construction of the Western Sydney International Airport at Badgery’s Creek is now underway. By 2026, this once rural parcel of land, to the west of Liverpool, will be home to Sydney’s second airport, and will boast a terminal twice the size of Sydney’s current airport. It will also be home to the Western Sydney Aerotropolis, a gigantic aerospace, engineering, science, business and residential hub that will be built around the airport.
Constructing a huge airport in an otherwise sleepy area while simultaneously creating a suburb out of nothing is impossible if you don’t have an established area that can service the new projects. And this is exactly the role that the perfectly placed Liverpool will play. The city is already home to the headquarters of the new airport and has begun to play its role as the feeder city to the huge construction.
On top of that, Liverpool has been chosen as the site of Moorebank Intermodal, a government-funded freighting hub that will create around 6,800 jobs by the time it is completely up and running. The private sector too has its eyes on Liverpool, with Amazon recently choosing it as an Australian base.
All this is to say that while Liverpool might already be recognised as one of the best rental markets in Sydney, there will be countless more residents arriving in the coming decades. And many will be that most alluring of rental candidates, the young professional.
An injection of infrastructure
But how will the city of Liverpool cope with this wave of new residents, new businesses and new activity? Happily, it appears to be very ready.
There are a wealth of projects that have been crafted by both the state and local governments to prepare for the growth of the coming years. There’s the South West Growth Area, a project that is rezoning large swathes of land to the southwest of Liverpool as residential.
The Western Sydney Infrastructure Plan will help to build the roads and transport infrastructure needed to service such an area. As recently announced by the NSW Government, part of this infrastructure will be an extension of the Sydney Metro, which is currently under construction in inner-Sydney. Liverpool is set to be a stop on a line that may eventually reach all the way out to the second airport, as the London Underground does to Heathrow.
Finally, Liverpool council has recently rezoned the 25 hectares in the heart of the city, with the intent to turn it into Sydney’s third CBD. The 18-hour economy that this rezoning facilitates will attract more and more businesses and will help to transform Liverpool into the undisputed hub of Sydney’s southwest.
An ideal time to buy
Big things are already happening in Liverpool, and even bigger things are still to come. This makes the current investment opportunity all the more exciting.
In response to the greater Sydney market, prices in Liverpool have plateaued in recent years. In 2015 units sold, on average, for $440,000. In 2018 they sold for an average of $429,000. This means that if you negotiate well, you can get a 2019 unit for 2015 prices, safe in the knowledge that the area will soon see a huge population boom and a wealth of private and public sector activity.
Liverpool’s rental market is strong, and it will only get stronger in the future. By making the most of current property values, you can secure a well-priced and highly rentable property, and enjoy a wealth of prospective tenants for years, and most likely decades, to come.