Sydney’s power shift: New airport sparks major business surge

The new Western Sydney airport is behind an enormous growth spurt for the region with a major bank revealing a stampede of new business investment away from the traditional hotspots.

New businesses are flocking to Western Sydney, spurred by the new 24 hour international airport, with latest lending figures showing investment out west is outpacing the traditional eastern suburbs hotspots.

Westpac has revealed business lending was up by 15 per cent across the west over the last year, compared to 13 per cent growth in the coastal part of the city.

The majority of Westpac’s Western Sydney portfolio was term loans for businesses buying commercial property or building new sites.

Austral was the top suburb for growth, with business loans up by 166 per cent over the last 12 months, compared to double in Cecil Hills and 62 per cent growth in Silverwater.

Cabramatta saw its business lending grow by 52 per cent, while Penrith and Baulkham Hills were both up by 51 per cent.

The exterior grounds and parking of the terminal building during the official unveiling of the Western Sydney International Airport earlier this month. Photo: NewsWire/ Gaye Gerard

Westpac general manager for commercial banking Shane Howell said much of Austral’s growth centred around construction and retail tenants for a proposed $55 million Coles shopping centre.

He also said the bank expects double digit growth to continue for the next three to five years for the region, after the completion of planned transport links and the new Western Sydney International airport next year.

“We’ve heard a lot about the airport in Western Sydney for a long time in statements, but I guess what we’re seeing is it’s live and it’s happening now.

The 24 hour operations of the airport has been a major driver for business investment.

“I really think it’s only at its infancy and not only have we seen the housing boom out there, the new airport will bring a lot of industrial and wholesale investment.

“Something businesses are taking advantage of, is about a third of the workforce actually lives out west, so domiciling out there is really important.”

He explained the eastern suburbs surrounding the harbour, with the CBD and port, had dominated Sydney’s business investment for the last decade.

But the new airport, with 24 hour flights, was expected to introduce more of a “night-time economy”, with opportunities for sectors like transport and freight, he said.

Westpac general manager of commercial banking Shane Howell says 24 hour flights at the new airport will introduce more of a “night-time economy”.

Westpac’s data showed the region’s top industry for lending growth was services, with lending up by 61 per cent. Wholesale trade rose by 40 per cent, followed by finance and insurance, with 24 per cent growth.

Mr Howell added wholesale trade, or business-to-business providers contributed to almost a quarter of business lending growth in the region.

“These are businesses that are quite dependent on air and road freight and are set to benefit significantly when the airport comes online.”

Other businesses investing around the airport included accommodation providers and commercial property, he said.

“A lot of people are investing out there in different physical formats, whether that’s factories, whether that’s industrial sites.

“We’re seeing a bunch of our customers from other states investing out there in the industrial sector.”

One company preparing for the arrival of the Western Sydney International Airport is waste management specialist Renier Group.

The company, which processes and recycles construction and demolition waste, is opening a new site near the airport in Luddenham.

Renier Group managing director John Scarlis (second from left) at a sod-turning ceremony for his company's new site at Luddenham. Image: Supplied

The group’s advanced resource recovery centre will be part of the new Ferndale industrial precinct.

Renier Group managing director John Scarlis said the location was “everything” for the business.

Renier Group managing director John Scarlis at the company's new site at Luddenham last week. The company is one of many investing in Western Sydney, ahead of the opening of the new airport next year. Image: Supplied

He added the new site will be the company’s largest and most sophisticated facility - compared to its current “analog” waste processing plant, which relies heavily on manual labour.

“The new advanced resource recovery centre will be a digital plant with automated processes and optical sorters - computers that sort everything from timber, to bricks, tiles or metal so it can be recycled.

“Around 85 per cent of the waste we process will be recycled, helping to contribute to the circular economy.

“When we’re in full operation we’ll be processing 120 tonnes of waste an hour - that’s 600,000 tonnes a year.”

Originally published as Sydney’s power shift: New airport sparks major business surge