November 28, 2013 by Craig Pontey
Recently you might have received a newsletter from Transport for NSW with details of the CBD and South East light rail project (CSELR). While a series of community information sessions are now taking place there is no doubt the CSELR will have a major impact on the City and many parts of the east, not only those suburbs directly affected by the light rail route.
Looking back in history the first tram service to Bondi Beach was completed in 1894 and was extended to North Bondi in 1929. The last Bondi tram ran early Sunday morning on February 28, 1960. Now over half a century later trams are returning to many parts of Sydney as a major and very visible improvement of transport infrastructure.
The link between infrastructure and development is very positive on many aspects of the residential property market in particular helping to seed demand for new developments.
Over the next few years two light rail links in Sydney will transform parts of the South East and Inner West. Close to home the completion of the South East line will boost the appeal of some already popular areas. The link will also tie these areas closer to the CBD while also reducing chronic CBD congestion. While disruption will be unavoidable during the building of the light rail, it will help revitalise inner Sydney and for the CBD and South East add further energy to the residential market.
We have already seen this trend along the current Inner West Light Rail Extension, which operates from Central to Lilyfield, the extended service will begin operating in early 2014 with nine new stations and an investment of $176 million. Popular residential areas like Leichardt, Dulwich Hills and Marrickville are set to benefit.
The South East Link
The South East Light Rail to be built through the Sydney CBD to Randwick and Kingsford and it will soon be on its way. The link will also boost the access to Moore Park and for many residents in the east this will be welcome news, as traffic congestion around the area will be greatly reduced during popular events. A heads of agreement is now in place with Randwick City Council, The Centennial Parklands Trust, and The University of NSW, along with the City Of Sydney Council who have all joined with the State Government to assure the project. The Sydney City Council has always been a strong supporter with a contribution of $220 million.
The CSELR has price tag of $1.6 billion the 12 kilometre project will link Circular Quay and Central via George Street, the Moore Park precinct including the Sydney Cricket Ground and Allianz Stadium, Randwick Racecourse, the University of NSW and Prince of Wales Hospital at Randwick.
The reduction in congestion combined with a brand new public transport option to such key locations will greatly increase the demand for all real estate in these suburbs including boosting demand for new residential development. In recent years we have already seen a big jump in the number of new projects as light rail potential starts to become a reality and the trend will continue across the entire area. The value of the line will not be wasted on a residential market where buyers are always keen to have easy access to transport.
The light rail will make suburbs like Randwick, Kensington and Kingsford even more attractive places to live and will further reinforce the demand for property in these and other areas.
In the south-east major employers like the Prince of Wales Hospital and The University of NSW will also benefit from the new light rail and this will fuel the demand for housing in the area already influenced by the student population. This will also sustain demand for rental accommodation and boost the investment appeal of the area.
Moving people efficiently into and out of special events at Moore Park is also a very positive feature that will potentially boost economic activity as the area competes to attract new events.
Delivery Now a Reality
All eyes are now on the final timetable for construction of this very welcome infrastructure in the South East, which it is expected to take five or six years. Construction work is planned to begin next year.
Sydney’s lack of public transport infrastructure has held back our reputation as a world-class city. The new Light Rail links are very welcome and they will change local property demand, values and rentals.
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