Western Sydney businesses outpace NSW with 9.2% lending growth. From logistics to luxury retail, companies are seizing the infrastructure opportunity wave.
What’s happening: Businesses across Western Sydney are experiencing unprecedented growth opportunities, with some sectors recording lending increases of nearly 30% as entrepreneurs capitalise on infrastructure investment and population shifts creating new consumer markets.
Why this matters: While many Australian businesses face economic headwinds, Western Sydney companies are demonstrating how strategic positioning near major infrastructure projects can drive exceptional growth, offering a roadmap for businesses seeking expansion opportunities.
The business community has discovered Western Sydney’s secret weapon: timing. As Australia’s largest infrastructure projects near completion, smart entrepreneurs and established companies are positioning themselves to capture the economic windfall that follows major transport and development investments.
NAB’s 2025 Greater Western Sydney report shows businesses aren’t just surviving in the region, they’re thriving with lending growth rates that dwarf state averages. Basic Material Wholesaling led all sectors with 29.2% lending growth, while Accommodation, Cafes, Pubs and Restaurants recorded 25.4% growth as the night-time economy explodes.
“There’s an incredibly positive mindset among business owners, who are making the most of the region’s growth and development,” explains Sharryn Haydon, NAB’s Regional Business Banking Executive for Sydney South West.
Smart money follows infrastructure
The numbers reveal why businesses are betting big on Western Sydney. With Western Sydney International Airport opening in 2026 and ultimately handling 80 million passengers by 2060, transport-adjacent businesses are experiencing unprecedented demand.
One-third of Australian transport operators have established major operations between Parramatta and Campbelltown, recognising the region as a crucial logistics hub connecting domestic and international markets. Equipment finance specialists report wet- and dry-hire businesses are booming with years of contracted infrastructure work ahead.
Business resilience strategies that worked nationally are proving especially effective in Western Sydney, where infrastructure investment provides multiple revenue streams for construction, logistics, and support services.
Industrial property transactions hit $4.17 billion with 13.6% growth, driven by businesses seeking owner-occupier facilities near transport corridors. The sector maintains a tight 2.5% vacancy rate, forcing businesses to secure space early or risk missing opportunities.
Entrepreneurs seize the moment
Small business owners are adapting quickly to changing consumer patterns. NAB bankers report an uptick in açaí outlets and food trucks as price-conscious diners seek alternatives to mall food courts, with local entrepreneurs meeting market demand through innovative service models.
Business deposits grew 9.8% year-on-year, outpacing NSW’s 7.5% growth as companies build war chests for expansion. Many businesses are prioritising technology investment, with some already finding AI solutions help manage costs and staffing challenges while improving margins.
Manufacturing sectors show strong confidence with Food, Beverage and Tobacco Manufacturing growing 19.5% and Machinery and Equipment Manufacturing up 17.2%. Metal Product Manufacturing recorded 15.3% growth as construction demand creates ripple effects across supply chains.
Logistics giants stake claims
The strategic positioning between Parramatta and Campbelltown has attracted major transport operators who recognise Western Sydney’s role as Australia’s emerging logistics capital. Road Transport lending grew 14.1% as businesses expand fleets ahead of airport operations.
The upcoming Aerotropolis spans 11,200 hectares, creating an advanced industrial and logistics precinct 40 times larger than Sydney’s CBD. Australia’s newest city, Bradfield City Centre, will support 200,000 high-quality jobs within this ecosystem.
WestConnex, completed in 2023 as Australia’s largest tunnel network, has already improved business accessibility. Sydney Metro West’s 2032 completion will further enhance connectivity, making Western Sydney an attractive alternative to congested eastern corridors.
Retail revolution underway
The retail landscape transformation demonstrates Western Sydney’s economic maturation. Major luxury brands including Dior and Louis Vuitton have expanded into the region, recognising the spending power of the area’s growing affluent population.
Personal and Household Good Retailing grew 13.6% while Food Retailing increased 10.1%, reflecting strong consumer confidence. The City of Parramatta’s transformation into Sydney’s second CBD through a $3.5 billion rebuild has created premium retail opportunities that weren’t previously available.
Abdul Sbeit, NAB’s Regional Business Banking Executive for Sydney North West, observes the cultural shift: “The culture and lifestyle preferences in Greater Western Sydney mean that businesses are thriving from a night-time economy. You used to be lucky to get a kebab after hours, now you can enjoy a sit-down meal with your family at midnight.”
Community Services recorded 12.8% lending growth as businesses expand to serve the growing population, while Education sector lending increased 10.3% as training providers establish campuses near employment hubs.
For businesses considering expansion, Western Sydney offers a compelling proposition: established infrastructure, growing consumer markets, available commercial space, and demonstrated economic momentum that outperforms broader state trends. The businesses moving now are positioning themselves for the next phase of Australia’s economic geography.
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