Westlink M7 – The Driver of Western Sydney Industrial Prices

Since its completion in mid December last year many of you will have driven along the M7 motorway.  It is Australia’s largest infrastructure project to date and while it may be impressive from the ground, to be fully appreciated, the enormity of the development is best seen from the air.  On a recent helicopter tour of the roadway we were able to visually inspect the full impact of this enormous stretch of infrastructure, and the catalyst it has been for increased development in the surrounding areas. 

The M7 spans for 40 kms, linking the M2 and the M5.  Construction cost for the project was $1.5 billion dollars and at peak production 2,500 people were working on site.  Over 15 million tonnes of earth were moved – 5 million tonnes alone for the light horse interchange which is classed as the largest interchange in the southern hemisphere (pictured).  The M7 has meant huge benefits for reduced traveling times giving drivers a 65 minute saving in getting from the M2 to the M5, while avoiding 47 sets of traffic lights.

Since the roadways construction there has been tremendous movement in the volume of land traded along the M7 corridor.  Currently there is around 400 hectares of land for sale or pre lease and another 2000 hectares in landbank.  The average take up of land over the past two years has been 50 hectares per annum – attracting occupiers such as 3M, Makita, Coca-cola, Cadbury Schweppes, BlueScope Steel and Electrolux.

Since 2001 the increase in surrounding land prices has been astronomical, with rises in land values as high as 180%, and average increases sitting at around 21% for rents and 106% for land.

Rents, Land Prices & Percentage Growth from 2001: M7 Corridor

The market has now leveled and seems to be holding position for the time being, and the figures above demonstrate the characteristics of a market that has arguably peaked.  It serves however, as an excellent example of what improvements in infrastructure can do for surrounding development and prices - a history to refer back to with future projects that may arise around the country.

Please contact Benjamin Mulae, Director - Property Services on (02) 9438 3233, should you have any queries.