Why Parramatta?
Parramatta is located at the head of the Parramatta River, 24 kilometres west of Sydney's CBD, Parramatta City is currently experiencing an exciting period of change with massive redevelopments underway. As a major transport, social service, retail and cultural hub, Parramatta is core to the development of Western Sydney. The property market in Parramatta and surrounding suburbs such as Westmead, Northmead and Oatlands experienced exceptionally strong growth in the last property boom. Despite minor corrections in the years following the peak of the property cycle in 2003 all leading indicators are pointing to a market that is set to take off!
Parramatta has a rapidly growing economy that has been built on the back of a wide range of industries. Finance and insurance, manufacturing, and property and business services are the most dominant industries accounting for just over 50% of total output in Parramatta. This reflected in the fact that Parramatta is the third largest centre in Sydney in terms of office stock, behind the Sydney CBD and North Sydney. Interestingly, Parramatta's GDP contribution from the services sector is larger than that of Brisbane.
Recent times have heralded a new era of both public and private investment in Parramatta. The new Children's Court opened in 2006 signals what will eventually be one of Australia's largest legal precincts. The arrival of the Attorney Generals Department follows the move here of NSW Police, Sydney Water, RTA, the Office of State Revenue and many other government agencies. The private sector has been quick to follow, with Parramatta already the financial and insurance centre of Western Sydney. Still to come is the $1.4 billion Civic Place development of three hectares in the heart of the city, the largest urban revitalisation project in NSW this century.
Upon completion (2014), Civic Place will comprise of five linked outdoor public spaces based on European style piazzas. Other features will include 65,000 aquare metres of 'A' grade commercial space, 35,000aqm of new retail space, 20,000 square metres of residential space for up to 800 apartments and 15,000 square metre of public space. Civic Place will also include Council offices and Approximately 2,500 underground parking spaces. The plan hopes to bring 30,000 additional jobs to the area over the next 25 years which will result in a significant increase in demand for dwellings in the region.
Other projects/developments that have, and will continue to stimulate the Parramatta economy include:
– The recent $110 million Transport Interchange development (upgrade of Parramatta Station) which currently delivers 54,000 people per day and provides improved transport services and facilities for the growing population of Western Sydney;
– The $109 million expansion of Westfield Parramatta which attracts 360,000 visitors per day;
– The $330 million upgrade of the Parramatta Justice Precinct that will house more than 1500 Attorney General's staff by 2008 making it the second largest legal precenct in Australia;
– The Commonwealth bank announced plans to move 3000 staff to Parramtta on completion of its new facilities in George St in 2007;
– The $119 million first stage redevelopment of Westmead Hospital
– The $140 million expansion of the Coca Cola Amatil facility at Northmead that will secure employment for 700 workers and generate an additional 165 jobs for Western Sydney.
Parramatta City Council is also aiding this growth through their four year Parramatta Economic Development Partnerships Plan – a pooling of both public and private expertise and investment into developing a strategy to maintain the recent performance of the city. Initated in March 2007, the strategic plan to deliver on this vision will concentrate on issues relating to physical developments, access, sercurity, marketing and building an attractive destination. Whilst providing guidance as to the future direction of Parramatta, the strategic plan will be sufficiently flexible to respond to changes in the market and to new opportunities.
This plan, along with the sheer size and nature of the developments both completed and in the pipeline for parramtta, are expected to have widespead benefits extending to all of Western Sydney and NSW in gerneral.
So………..take advantage of this guys and Act on it!
I've often wondered about Parramatta but it has had a bit of negative press lately. I'd be very interested in your thoughts on Terry Riders recent report:
"I've just completed my list of the No Go Zones – the worst places to invest in property in Australia – and the Parramatta precinct is right at the top of the list: prices are still falling, the long-term growth record is poor, there's a high rate of home re-possessions, serious crime is rife and it's at the leading edge of social disadvantage. You just don't want to invest in these sorts of places."
I think Terry's comments very much depend on which part of Paramatta you're talking about. Yep, there are some problem areas, but there are also some very well-to-do families out there, not to mention growing business presense.
One of the reason why Parramatta prices is low is because of the high crime rates but once this is removed the price will begin to rise. The police head quarter just moved there end of last year on Hassal st, so you would expect the general to do something about it, he wouldn't sit there on his chair and let these things happening in his garden. Plus the government is spending 1.4 billion dollars to redevelop the place…….once everything is in place……i believe Parramatta will be very interesting
Similar comparison can be made to Cabramatta. 10 years ago…. who wants to go there? the crime rates was so high and the price down there was only 100k on average. 10 years later….crime rates is beginning to fall and the average price there is 400k.
About Terry Riders, I belive his research is based on the 'current' Parramatta. As investors we need to look at the future of the area and buy in the lowest state not the highest, and buy time….
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