The impact the Sydney Metro has had on Castle Hill apartment prices and suburb gentrification
Castle Hill and Baulkham Hills have long been the two most populous suburbs in Sydney's Hills District, around 30 kilometres north west of the city.
The emergence however of the Sydney Metro out to the Hills District has seen Castle Hill become the epicentre of activity.
New data from CBRE and PropTrack highlights that Castle Hill has recorded capital value growth of 72 per cent compared to the 49 per cent growth that’s occurred in the non-Metro suburb of Baulkham Hills.
CBRE’s Pacific Head of Research Sameer Chopra has dubbed it a “metro-fication”, which is transforming the living experience, work patterns and retail choices of Sydneysiders close to the city’s new railway stations.
"Since 2011, population has grown by 23 per cent in metro-line suburbs, eight per cent higher than in suburbs further out," Chopra says.
“By 2030, Sydney will have a network of four Metro lines, 46 stations and 113km of new Metro rail.
"We’ve already seen early evidence of this driving higher residential price growth and we see this outperformance increasing once the next stage is completed, with shorter commute times being a key driver."
Chopra says apartment development has unlocked opportunity for residents to live in more affordable yet well-connected areas.
The research found the younger demographic is happier than ever to move out to the Hills District, driven largely by the fact a train to the city will pass through the soon to be opened Castle Hill metro stop every four minutes.
"We found that 45 per cent of residents in suburbs along the Metro line stations are Gen Z and Gen Y, five per cent higher than in suburbs slightly further out," Chopra says.
McGrath Projects Associate Director Adam Sparkes, who is marketing Grand Reve which is set to complete in just over 12 months, says the metro line has increased the attractiveness for first home buyers.
"While the majority of our buyers currently are downsizers, who aren't particularly impacted by interest rate rises, the early phase of marketing last year saw a number of first home buyers snap up the one-bedroom apartments."
Sparkes says they've been attracted to both the proposition of being in Barangaroo in just over 30 minutes on the Metro, but also the amenity that Castle Hill offers, in the form of Castle Towers which has undergone a full redevelopment.
Chopra says the precinct developments the younger, more vibrant demographic, is being drawn to higher density living and eating out, the latter of which has been a sticking point for the first home buyer pool in the past, but not so much now with the introduction of extensive hospitality options.
He said the near-Metro suburbs have 12 cafes per 10,000 residents and hold an average of 23 liqour licences, compared to eight cafes and an average 10 liquor licences for every 10,000 residents in suburbs further away.
Deicorp's two biggest Hills District projects, Hills Showground in Castle Hill and Tallawong Village in Rouse Hill, have been designed more like precincts than just apartment towers.
They're each bringing a wide variety of lively food and beverage options to the base of their buildings and walkways interwoven through the precinct.
Hills Showground Village is advertising 9,500 sqm of retail, including a full line supermarket and over 30 speciality retailers next door to the future Metro stop, while their retail spaces in their Tallawong Village precinct are already 70 per cent taken.
The expectation is the population of Castle Hill and the surrounding Hills District suburbs will continue to grow, with a number of masterplan projects in development and under construction. Add to that the $300 million Rouse Hill Hospital which has just commenced construction. The broader Hills Shire is expected to see an increase of 44 per cent in its population by 2036.