Greater Western Sydney: What the Growth Surge Means for Property and Planning

Greater Western Sydney (GWS) has become the centre of Sydney’s growth story, with both data and advocacy pointing to an economy reshaping around housing, infrastructure and business expansion. NAB’s Horizons 2025 report highlights record levels of investment and property activity across the west, while Business Western Sydney has been pushing governments to match that momentum with reforms and infrastructure delivery. Together, these perspectives underline a region at a critical turning point for landowners, asset holders and developers.

Source: NAB Horizons 2025 GWS Report

Population Growth and Housing Demand

The NAB report shows GWS is now home to half of Sydney’s residents and is expected to absorb two-thirds of the city’s future population growth. Median dwelling values remain below the Sydney average, but annual gains in suburbs like Bonnyrigg and Cobbitty hit double digits. This signals both affordability and growth potential. At the same time, Business Western Sydney has campaigned through the Housing Now! Alliance for faster land release and bold planning reforms to ease the housing crisis. For developers, the alignment of strong market demand with advocacy for planning reform suggests clear momentum for new housing supply across both greenfield and transit-oriented sites.

Infrastructure as an Economic Driver

Investment in infrastructure is reshaping accessibility and land values across the west. The NAB report points to projects like Sydney Metro West, WestConnex, and the $3.5 billion rebuild of Parramatta as critical drivers. The upcoming Western Sydney International Airport and Aerotropolis are set to transform Bradfield City into a new hub of logistics and advanced industry. Business Western Sydney has consistently argued that housing growth cannot occur without matching infrastructure and recently welcomed commitments to South West Sydney rail and road upgrades. This dual focus underscores a long-term property uplift where transport investment meets zoning reform.

Parramatta Square at sunset.

Commercial and Industrial Opportunities

Industrial property continues to lead in GWS, with vacancies at just 2.5% and transactions topping $4.17 billion. The Aerotropolis precinct will span 11,200 hectares and support 200,000 jobs, making logistics and advanced manufacturing the strongest asset classes for sustained growth. Commercially, Parramatta has secured its role as Sydney’s second CBD, while Liverpool’s Innovation Precinct positions the city as a hub for health, education and research. Business Western Sydney’s advocacy for these centres aligns with investor trends, pointing to rising demand for mixed-use, knowledge-based precincts alongside established industrial assets.

Business Confidence and Local Economy

NAB’s data shows business lending in the region grew by 9.2% and deposits by 9.8%, both outpacing NSW averages. Local SMEs are expanding despite cost-of-living pressures, with sectors like hospitality, logistics and personal services seeing double-digit growth. Business Western Sydney has pressed for stronger government support for SMEs, particularly after the axing of the Business Connect program, and raised concerns about insolvencies. For asset owners, this mix of business resilience and advocacy for support indicates ongoing tenant demand but also the importance of policy stability.

So what are the implications for planning and policy?

• Housing: Affordability gaps will sustain demand, but delivery depends on reform to unlock land and streamline approvals.

• Infrastructure: Metro, motorway and rail projects will continue to define value uplift zones, particularly along transit corridors.

• Industrial/Logistics: The Aerotropolis and surrounding logistics hubs remain the strongest long-term property class.

• Commercial/Retail: Parramatta and Liverpool will attract both high-end retail and innovation-focused industries, shaping new investment clusters.

• Policy Advocacy: Business Western Sydney’s campaigns signal where government focus is heading, offering clues to future zoning, infrastructure contributions and growth precinct priorities.

Greater Western Sydney is at once a live market opportunity and a long-term planning project. For landowners, asset holders and developers, the message is clear: population growth, infrastructure investment and business confidence are aligning. The NAB data confirms the scale of activity, while Business Western Sydney’s advocacy highlights the policy levers being pulled to sustain it. Together, they paint a picture of a region that is not just growing, but actively shaping its economic and urban future.

You can access the NAB Horizons 2025 Special Report Greater Western Sydney here.