Raine and Horne Commercial

25 | INSIGHTS SPRING 2018 NSW | Outer West With the spring property market upon us, Penrith’s commercial market is poised for some serious buyer action. The Nepean is a region replete with opportunity. As a prime beneficiary of Sydney’s second airport at Badgerys Creek, due to open in 2026, Penrith is extremely well-placed to tap into the economic boost that the Western Sydney Airport will bring. Already, vacancy rates in the area are tight – si ing at 1.0-2.9% for retail property, and office assets, but below 1.0% for industrial assets. Yields are being compressed, and range from 4.0-6.0% for retail, 5.0-7.0% for office space and 5.0-8.0% for industrial property. These yields are expected to remain unchanged for the remainder of 2018. Not surprisingly, Kieran McGarity of Commercial Penrith says SMSFs continue to be active in the area, with a particular focus on the $1-3 million market. Most SMSFs are seeking yields in the order of 4.0-8.0%. For commercial investors it is worth emphasising that in less than a decade, the Badgerys Creek airport will be operational. And it is expected to be more than simply a place for planes to take off and land. The airport is set to be a catalyst for the economic transformation of the Western Sydney region. Add in the development of Sydney’s arterial roads, in particular the North Connex project linking the M1 to Sydney’s Western suburbs, and Penrith offers considerable upside to investors, SMSFs and business owner occupiers – both today and further down the track. Penrith “ As a prime beneficiary of Sydney’s second airport at Badgerys Creek, due to open in 2026, Penrith is extremely well-placed to tap into the economic boost that the Western Sydney Airport will bring. ”