The trend comes at a time of historically high infrastructure investment in Parramatta, according to new analysis from Deloitte of the Parramatta development market.
The inaugural Parramatta Crane Survey revealed an unprecedented level of construction in Parramatta, identifying 39 developments. Across these developments, the survey showed:
• 92,000sqm of office floor space currently under construction.
• Zero vacancy rate for A-Grade office space with total vacancy rate at 4.3% compared to 5.9% in the Sydney CBD.
• Apartment construction is slowing with only 1,100 DA approved apartments in the pipeline - 63% less volume than currently under construction.
• By 2020, 857 new hotel rooms will have been built across four projects.
Survey author and Deloitte Western Sydney’s real estate leader, David Hagger, said the shift of momentum towards commercial development, away from residential, will continue to attract higher paid jobs to Parramatta.
“The Parramatta Square development alone could house over 20,000 workers, with around 10,000 more expected across the rest of the city.
“Many of these will be public servants, with the NSW Government being the anchor tenant after making the largest pre-lease commitment we have ever seen.
“We are also seeing an influx of private sector companies, including the high profile move by NAB to make Parramatta its second home, with a number of other businesses now circling for space in the remaining repurposed commercial building on Parramatta Square,” said Mr Hagger.
The survey reveals that there are currently 2,707 apartments under construction in the Parramatta CBD, due for completion between 2018 and 2019.
With a further 4,865 apartments proposed across 12 projects, a potential ‘flood’ of the market is being predicted. According to Mr Hagger, however, the survey indicates a different outcome.
“We see the market entering a cooling phase. There are only 1,110 apartments with DA approval in the pipeline, providing a short-term supply of approximately 2-3 years, indicating lower risk of oversupply,” he said.
“Plans to expand the Riverside Theatre, move the Museum of Applied Arts and Sciences to the banks of the Parramatta River and construct a new 30,000 seat stadium are all in place, with the Parramatta Light Rail connecting people between these amenities, the Westmead Health and Education precinct and Sydney Olympic Park.
“Future investment in Badgery’s Creek airport and the Metro Sydney West project will provide an additional boost in the coming decade.”
