Proposed Western Sydney Airport zonings destroy local property values

Homeowners around the new Western Sydney Airport say a planning firm has told them their properties are now almost worthless.

Furious residents say their homes have been left “unsellable”, with one saying his property’s value plummeted from $11 million to only $1 because of proposed land zonings surrounding the new western Sydney airport.

Theo Koutsomihalis says under the latest zonings proposed, his entire 10 acre Luddenham property would be designated as green space – wiping millions from its value after it had previously been zoned as enterprise land.

Luddenham resident Theo Koutsomihalis told a public meeting a planning firm had valued his 10 hectare property as worth $1 under State zoning proposals which would see it deemed green space. Picture: NCA NewsWire / Gaye Gerard

He said planning firm Urbis had initially valued his land, then zoned as enterprise, at $11m.

However, proposed plans by the State government have designated his entire property as green space – with the firm updating him the property would now be “unsellable” with a value of $1.

“I’m stuck now with a property worth $1 for the next 20 or 30 years, if it ever sells,” he said.

“The other day I literally had to pull the car over and have a panic attack for 45 minutes.

“My kids’ future is gone.”

Mr Koutsomihalis drew the largest cheer at a public meeting of about 200 concerned locals at Luddenham Showground on Tuesday with state politicians and councillors from Liverpool and Penrith.

About 200 residents took shelter under tin roofs or in the shade of gum trees at Tuesday’s meeting about proposed rezonings of land around Western Sydney Airport. Picture: NCA NewsWire / Gaye Gerard

Uncertainty continues over the future for small landowners surrounding the airport at Badgerys Creek which is due to open in 2026, after draft plans released late last year designated great swathes of land as open space.

While the government has appeared to pledge to buy all land designated open space, homeowners fear new land designations will wipe millions from the values of their homes as their uses are changed and limited.

The declarations have also come without any monetary commitment to residents whose financial futures have been plunged into limbo – with many fearing that if their land is eventually sold, they may not be compensated for years.

Opposition leader Jodi McKay said she would push for an upper house inquiry into the sale of land around the airport next week. Picture: NCA NewsWire / Gaye Gerard

While consultation on the proposed Northern Gateway plans, which includes the rezonings, was due to close on February 26, the government extended the time for submissions to this Friday after The Daily Telegraph highlighted the plight of residents in the area.

Liberal MP for Mulgoa, Tanya Davies, whose electorate includes the town of Luddenham, conceded to the community meeting the move was “theft”.

“At the end of the day, I’ll be really ticked off if the Government continues on this way …(it’s) a fact, it’s theft,” Ms Davies told the crowd.

“I don’t stand here parroting the government line.”

Earlier, she said “while the government has a vision” for the land surrounding the new airport, “it is completely undemocratic and un-Australian for the Government to think people such as yourselves will hand over your land for free and no compensation whatsoever”.

Residents living around Western Sydney Airport remain uncertain about how much their homes will be worth under the proposals. Picture: NCA NewsWire / Gaye Gerard

While those residents feared massive losses, the property developing Medich family

made nearly $500 million from selling a 334-hectare parcel of undeveloped land bordering the airport site.

They recently sold the land bought from the CSIRO in 1996 for $3.5m to a Chinese-linked funds management firm for $499.95m, The Australian newspaper reported.

At the same public meeting NSW opposition leader Jodi McKay implored government ministers to back an Upper House parliamentary inquiry into purchase of land around Western Sydney Airport, saying the laws surrounding government acquisition of properties at the site under the Just Terms Act are “broken”.

A spokesman for Planning Minister Rob Stokes said “The plans have not been finalised. The public consultation is open until Friday. We invite anyone to make a submission.”.