Metro Provokes Multi-Billion-Dollar Castle Hill Development Surge

The dormitory suburb of Castle Hill is a classic example of sprawling suburbia, where detached homes cluster around quiet culs-de-sac. But QIC’s October announcement that it will commence on a $600-million overhaul of the Castle Towers shopping centre , directly connected to the local Metro station, has highlighted the surge of development activity and the pace of change under way in the town centre. Urban Property Group head of planning Chris Ferreira told The Urban Developer that Castle Hill had “traditionally been a bit of a family suburb, with not a lot of diversity in housing stock”. “Lots of big blocks, but that begins to really price out a lot of younger people and there aren’t many downsizer options,” Ferreira said. According to Ferreira, the introduction of the Metro has been the catalyst for change, and means “there’s a lot more interest in living there from people who maybe not necessarily have grown up in the suburb”. Clutch of towers in play The revamp of Castle Towers, projected for a 2029 completion, reflects that transformation. While 70 new stores will be introduced—including athleisure brands like Lululemon and JD Sports—the centrepiece will be a 6000sq m wellness hub. The rooftop health club will be the largest in Sydney, according to QIC. Approval is also in place for a 12-storey office tower and a 17-storey, 210-key hotel tower. But in late September, local developer Reve Group announced it has signed Accor to operate the first hotel in the area, beating QIC to the punch. ▲ Weddings, business travellers, tourists and the VFR market will all benefit the Novotel, Accor said. The 143-key Novotel will sit within the mixed-use Nova Rêve precinct, just 100m from Castle Towers. Three towers are under construction at the site, with the highest at 23 storeys, holding 253 Turner-designed apartments. Accor Pacific chief operating officer Adrian Williams told The Urban Developer that the hotel will target and appeal to a broad range of market segments, “and the Novotel brand is perfect for that”. “We think that it will attract business travellers, the visiting friends and relatives market, local businesses and people that need to be in that area,” Williams says. “But more broadly, tourists that are looking to explore Western Sydney.” Although there are few similar hotels in the region to compare and project performance, Williams says the new Western Sydney International Airport will support growth, as will local demand for events space. “We say [Western Sydney] is where the opportunity is. It’s a huge population growth corridor, an amazing amount of corporates, industrial, there’s a whole range of stuff that’s being built,” Williams says. Planning and reacting to evolution The Castle Hill Strategic Centre Precinct Plan, adopted by the Hills Shire council in June 2024, is the policy foundation for densification, with a call for an additional 8300 new homes by 2041. This would boost the total homes in the 247ha town centre to 11,600, nearly quadrupling the 2016 baseline of 3300 homes in the blocks surrounding the Metro station. ▲ QIC says the redeveloped shopping mall will feature a destination wellness hub on its rooftop. An additional 10,000 jobs would also take employment to 18,080. The suburb 35km northwest of the Sydney CBD and 10km north of the Parramatta CBD had about 41,000 residents at the 2021 census. About 9000 were estimated to live in the town centre. However, according to the council, another 150,000 people will move to the Hills Shire over the next two decades, as a result of the Northwest Metro improving commuter accessibility. Employment hubs continue to grow along the Metro line, and travel times into the CBD have been slashed. Rush for high-rise resi Urban Property Group is exhibiting its own scheme at 16-20 Old Castle Hill Road, with an application for 371 homes open for submission until October 15. ▲ Projects like the Urban Property Group tower are forming a high-rise core around the Metro station. Ferreira says the 40-storey, $160-million tower is yet to launch, but is already receiving inbound interest from “everyone from downsizers all the way to young professionals, couples without kids, couples with kids”. “I think there’s been a bit of a push in the Hills for larger units, and whilst we have got some large stock, there’s also some more diverse stock within this proposal,” Ferreira says. “The Hills is pretty diverse in terms of some of these tall building precincts that are popping up…whether that’s Kellyville or Bella Vista or Norwest or Showground or Castle Hill, they’re all quite different.” Elsewhere in the vicinity, a 22-storey tower proposed for 325-329 Old Northern Road &amp; 2 Brisbane Road closed an exhibition in early October. ▲ Ferreira says the Urban Property Group project will service local downsizers, first-homers and families, and newcomers to Castle Hill. That $89-million project is proposed by MNR Investment Group Pty/Ltd, controlled by Rebecca Shalala. At 5-13 Crane Road, Reve Group is progressing another 160-home scheme with a $99-million price tag attached. An exhibition was held in September for the 22-storey project. Gemi’s $419-million, 615-home precinct at Cecil Avenue and Roger Avenue , and QIC’s 1410-home Kentwell Avenue precinct are also progressing through planning. ▲ Detached homes have been amalgamated for towers and precincts in the town centre. And at the station immediately to the west, the Showground precinct was rezoned for an additional 5000 homes in 2017, and then for 9000 homes in 2023 after the development cap was quickly reached . Given the scale of densification, the Metro may be becoming a victim of its own success, with developers reporting that commuters are finding it difficult to board at peak times. However, Ferreira says, that won’t cause a permanent brake on development. “It theoretically shouldn’t be too difficult to add more services. “It runs at a high frequency in the morning, with four minute intervals. “There’s always the ability to ramp that up a little bit if you have to. But I see that as a good problem to have.”

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Patrick Lau
Thu 08 Oct 26

Metro Provokes Multi-Billion-Dollar Castle Hill Development Surge

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