While large public transport developments typically lead to rising property prices in nearby areas, Sydney’s $12 billion Metro line appears to be an exception. Despite passing through high-demand suburbs from Chatswood to Bankstown, property values in these Metro catchments have lagged behind the overall Sydney market since the line opened last year.
Initially launched in 2012, the Sydney Metro was expected to trigger a surge in nearby property values. This expectation followed the pattern of earlier infrastructure projects across Australia. However, recent data shows that several suburbs along the 30km route, including Cherrybrook and Chatswood, have recorded either stagnant or falling house prices, going against those predictions.
Experts reviewing the trends noted that prices near these stations rose early in the planning stages as buyers reacted to the expected long-term benefits. But high entry prices, rising interest rates and strong investor demand seem to have constrained further growth just as the Metro became operational.
This outcome looks to be an exception rather than a shift in pattern. Analysts advise against applying Sydney's experience too broadly to other cities such as Melbourne and Brisbane. For instance, although Melbourne is expanding its own metro network ahead of the 2032 Brisbane Olympics, those areas have not seen the same early investor-driven price hikes observed in Sydney. This may be due to more tempered market conditions in Victoria.
Investors considering future infrastructure opportunities should note that while transport links can positively reshape suburbs over time, property growth may not be immediate. Delays in project completion, broader economic shifts and high initial costs all play a role in returns, meaning strong market fundamentals and timing are just as critical as the location itself.
