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Sydney brokers may be set for a bonanza after the state government announced forecasts of another 1.6 million residents and 664,000 homes.
NSW has announced that Sydney’s population will expand from 4.3 million to 5.9 million by 2031, an overall increase of 37 per cent or 1.6 per cent annually.
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The number of dwellings is expected to increase from 1.7 million to 2.3 million, a total increase of 40 per cent or 1.7 per cent per year.
The fastest-growing areas are likely to be on the fringes and in the western suburbs. Camden’s population is forecast to soar by 178 per cent, while Auburn’s is set to jump by 68 per cent.
There will also be growth of 59 per cent for The Hills, 54 per cent for Liverpool and 52 per cent for Blacktown.
Clear Home Loans owner Steve Bowers said prices in Camden had already doubled during the 14 years he had owned the business.
However, he said the constant development activity was making it hard to organise finance, because some blocks of land were taking 12-18 months to register.
Other drawbacks are that loans are usually smaller than in the heart of Sydney, while clients tend to have smaller deposits, he told The Adviser.
Citywide Lending principal Roger Kuo said that he made the decision to open an office in Liverpool two years ago because of the area’s growth potential.
He added that the area was already booming and was full of construction sites.
“It’s a growing area, so we’re seeing a lot of activity already. The loan amounts are smaller compared to other areas in Sydney, but we do higher quantities.”
Mr Kuo also said that investors from outside Liverpool were “aggressively” buying into the area, with some snapping up two units at a time.
Review Mortgages principal Stephen Boland said he was likely to do more local advertising and build more local referral relationships to capitalise on the strong growth forecast in The Hills.
He said winning all the new business wouldn’t be as easy as it sounded because many buyers in The Hills come from outside the area and therefore use outside brokers.
Mr Boland told The Adviser he had seen “enormous growth” during his four years in the area, with many homes being built and a railway line under construction.
He said buyers were typically paying $500,000 for a block of land and $800,000 for a home.
Sydney’s population forecasts come less than a month after the Victorian government predicted that Melbourne would add 3.4 million people and 1.6 million dwellings by 2051.
