Western Sydney is Evolving – Here’s Why Smart Investors Are Watching Closely

14
 
August
 
2025

Melbourne

 | 

Commercial

Western Sydney is Evolving – Here’s Why Smart Investors Are Watching Closely

Western Sydney has long played a supporting role in Sydney’s property story—seen by many as affordable but unremarkable.

That narrative is changing fast.

Driven by generational infrastructure investment and a deliberate shift in economic planning, areas like Penrith, St Marys, and Colyton are now squarely in the spotlight. And for those looking to make smart, long-term investment decisions, this part of the city is worth a closer look.

1. Government Infrastructure is Leading the Charge

Western Sydney isn’t just growing—it’s being reimagined.

The Western Sydney Airport (Nancy-Bird Walton) is the catalyst, but it’s just one piece of a much larger puzzle. Supporting it are billions in infrastructure investment including:

  • M12 Motorway: Linking the airport to the M7 and broader metro area
  • Sydney Metro – Western Sydney Airport Line: Creating new transport connections between St Marys and the Aerotropolis
  • Western Sydney Aerotropolis: A new economic precinct focused on advanced manufacturing, logistics, aerospace, and defence

This isn’t just infrastructure—it’s a long-term vision for a polycentric Sydney, with Penrith and its surrounds at the heart of the west.

2. Affordability Meets Accessibility

Suburbs like St Marys, Colyton, and Oxley Park still offer relative affordability compared to inner and middle-ring Sydney, yet they’re becoming significantly more connected and liveable.

With improved road and rail access, these areas are no longer isolated—they’re emerging commuter hubs with growing amenity and employment access.

And for families priced out of other markets, they represent one of the last frontiers for detached housing on land, within an hour of the CBD.

Urban Renewal and Density Uplift

The NSW Government is actively encouraging medium-density housing in key precincts, particularly around St Marys, which has been earmarked as a strategic centre.

Planning reforms, rezoning, and infrastructure upgrades are laying the groundwork for more development—but the right pockets will benefit disproportionately.

Suburbs with walkable train stations, existing schools, and shopping amenity will be the early winners as density increases and demand rises.

4. Investor Interest is Heating Up

We’re seeing growing investor attention, especially from those:

  • Priced out of inner-Sydney
  • Looking to balance yield with growth
  • Betting on infrastructure-led uplift over the next 5–10 years

While not all areas are created equal, suburbs on the transport and infrastructure spine—like St Marys and Penrith—are already showing signs of gentrification and value shift.

Our Take at 1Group

The Western Highway corridor—from Mount Druitt through to Penrith—is on a clear growth trajectory.

But success here hinges on buying the right asset, in the right street, within the right pocket.

It’s a patchwork market—some areas will evolve quickly, while others may lag behind or face oversupply risk.

We’re focused on identifying:

  • Streets with strong owner-occupier presence
  • Areas with early-stage gentrification
  • Sites near future transport nodes or within rezoning catchments

Final Word

The west isn’t just expanding—it’s transforming.

As infrastructure rolls out and planning policy shifts, new economic centres will emerge. or buyers and investors thinking long-term, now is the time to get strategic.

If you’d like help navigating this evolving market—whether to build a portfolio or secure a business location—we’re here to guide you.

Written by 
Rafi Peer
 on 
August 14, 2025

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