Over the next few years, the real estate market in the Northern Beaches is slated to get a boost. Though this effect may not be evident in the short term, there is bound to be a major positive impact over the next few years. The reason – Construction of the highly-controversial new hospital project at Frenchs Forest is on the anvil. In its wake is additional infrastructure as well as a number of spin-off medical and related businesses.
The Hospital Project
Since the preliminary work on the hospital, started last year, there has been a 10% rise in property and land prices in suburbs such as Frenchs Forest, Forestville and Davidson. Since the interest rates are also lower now, market watchers say that this trend will continue through 2015 as well. The Northern Beaches Hospital is set to open its doors in 2018. Developers are leaving no stone unturned to ensure that their projects also start alongside this particular project as it will give their businesses a distinct boost too.
Better Infrastructure
This is especially true since the State Government has now confirmed that it is moving forth with the widening of Warringah Road, a road underpass as well as a number of other upgrades to support this 488 bed hospital. It’s no secret that when the infrastructure in a particular region improves, it acts as a catalyst for real estate development. With improved accessibility, a larger number of businesses opt to set up base in the area. The projection is that properties in the vicinity will be hot and GP’s, medical businesses and specialists will vie for that space.
Higher Profits
Even up until last year, The Northern Beaches was a laggard in Sydney’s property market. Though the area recorded healthy prices growth in 2014, it couldn’t match up to mid-price/ budget areas. Now with this new development taking place, it opens up a massive area of opportunity for developers who find that other areas around the Northern Beaches are already saturated. Since this area is still developing, starting on their projects now will give them a head start and their profits will be higher.
Starting Out Early
Some notable developers have already begun amassing homes that lie along Frenchs Forest Road West just between Wakehurst Parkway & Rabett Street. This is just opposite the 6.5 hectare site at which the Northern Beaches Hospital is to be built. Currently, these homes are all zoned for the low-density residential market, but many real estate experts feel that this slab may eventually be rezoned for apartments which could be 8 stories high, even as construction starts at this hospital site.
Three years ago, agents in this area reported homes valued only at $800,000. Now they have been attracting a number of prospective sale prices that have touched the $3.5 million mark. There is no doubt about the fact that developers and buyers are now finding the Northern Beaches very attractive and the area is set for a major real estate shift.
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