Prime Minister Tony Abbott said the new airport at Badgerys Creek would not be fully operational for 10 years, but planning would start immediately and construction should start in 2016.
He said the initial construction phase would generate around 4,000 jobs, while the airport development itself would create around 35,000 jobs by 2035. This would increase to 60,000 jobs over time.
Glenn Byres, from the Property Council of Australia, said the news would accelerate investment in projects on surrounding land. This, in turn, would deliver jobs, growth and prosperity to the region.
Raine & Horne CEO Angus Raine said the airport would prove a boon for property values in Western Sydney – as well as nearby towns like Bowral. This was because the surge in jobs would create demand for new and existing housing.
For example, the economy in the neighbouring area of Liverpool was expected be jet-propelled by the development of the Badgerys Creek airport.
Vince Labbozzetta, from Raine & Horne Liverpool, said the economic activity and resulting job creation would provide a boost for the property market.
“Capital growth of between 5 and 10 percent annually will be achievable between now and the beginning of the construction phase.”
The airport generated activity would also underpin the area’s investment market as demand for rental homes was likely to boom, Labbozzetta said.
“We already have low rental vacancy rates in Liverpool. This announcement will squeeze vacancies further and push up rents by up to $50 to $100 a week as more construction workers move to the region.”
APM’s Andrew Wilson said the Badgery Creek airport development would activate economy activity in the Western Sydney region and create growth in certain satellite areas.
He said the satellite areas which would prove popular to live in would not be ones adjacent to the airport itself – due to the disincentives of flight paths and noise.
“However, regional centres with easy access to an airport tend to attract FIFO workers and this development will also open up that prospect for the West.”