Sydney house prices increased by 7.7 per cent since the Covid-19 trough of October 2020, with land prices in some parts of Sydney’s north west increasing by 15 per cent.
Rouse Hill in that region is one of the suburbs that has outperformed the average and is unusual in that it is split between two councils—The Hills Shire Council and Blacktown council, says Ritchie Perera from Castle Group.
Castle Group is a private development and construction company of residential projects in the region, with a current pipeline of more than $500 million.
Rouse Hill has benefitted greatly from the NSW government’s masterplanning of the North West Growth Area and heightened infrastructure spending.
The well-connected hub has two train stations on the $8.3-billion Sydney Metro line, Rouse Hill Station and Tallawong Station, and is 3km from the second train line of Richmond to Sydney City.
A new $300-million-plus public hospital is also in the pipeline. In 2019 its location was announced by the state government as just 300m from Rouse Hill metro station.
“Growth was always on the cards for Rouse Hill, with the hugely popular Rouse Hill Town Centre named as one of 2010’s top five best new developments in the world by the Urban Land Institute’s Global Awards for Excellence,” Perera said.
“It’s since positioned itself as a massive drawcard for the area with one of the highest retail occupancy rates in suburban NSW with extremely low vacancies.
“That demand has led to the approval of $300-million in expansion plans.”
Early construction works have begun for a 30,000sq m shopping precinct next to the Tallawong train station. This will be the second major shopping precinct servicing the area.
The precinct will feature prominent retail anchors such as Woolworths and Coles and more than 40 speciality stores including restaurants and cafes, further connecting locals and accommodate the growing north west.
Recent sales and demand
In the past 12 months, Rouse Hill’s median house price soared by 13.6 per cent with a median house price of $1,085,000 according to realestate.com.au.
It has been tipped to grow throughout 2021 by 15 to 20 per cent.
Illustrating the demand for Rouse Hill, a 341sq m block of land with a 300sq m home sold on March 13 for $1.535m.
The area has become popular with investors too, with a four-bedroom house containing a granny flat sold, mid pandemic, for $1.25m.
With more than 500 lots in the pipeline, Castle Group is Rouse Hill’s largest landowner.
“The accessibility to public transport, world-class education, proximity to popular business districts of Norwest Business Park and North Ryde Business Park as well as the award-winning Rouse Hill Town Centre, are pushing demand up and adding considerable value to property sales,” Perera said.
“Since the announcement of the new hospital, a number of our house and land packages have been secured by doctors as investment opportunities and nurses plus other medical staff as future family homes.”
A recent auction held by Castle Group for four blocks of land in Rouse Hill attracted more than 500 people.
“We had 83 registered bidders which is a phenomenal number, and exceeded the price expectations for the land,” Castle Group’s sales manager Jyoti Chaudhary said.
The results were: 317sq m lot sold for $730,000 ($2302 per sq m); 320sq m lot sold for $740,000 ($2309 per sqm); 345sq m lot sold for $760,000 ($2200 per sq m) and 345sq m lot sold for $770,000 ($2229 per sq m).
Due to the rising prices of Rouse Hill, surrounding suburbs such as Schofields and Riverstone are witnessing an increase in demand – in response to many being priced out of the growth market, Perera said.
“They are being gentrified with new cafés, hipster barber shops and a changing demographic which welcome the urbanisation,” he said.
In Riverstone, recent land sales of 250sq m lots have fetched upwards of $475,000, equating to $1900 per sq m.
Perera said Riverstone was currently undervalued, given the infrastructure, growth in the surrounding suburbs and the coming new Riverstone Town Centre.
“Accessibility to a dream home within 34km of the Sydney CBD, close to local employment hubs such as Norwest Business Parks and Marsden Park, and with plenty of space is appealing to buyers and investors,” he said.
“With the NSW government’s infrastructure spending, more and more families are coming to the north west to reap the benefits of a connected community.”
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