New growth chapter opens for Western Sydney businesses

NAB’s latest Greater Western Sydney Horizons Report found that business lending across the region outperformed the NSW average and grew 11.1 per cent over the past year, with investment continuing across health, construction, road transport, and wholesale.

Some of the strongest growth was recorded in health services, where lending climbed 23.2 per cent in the 12 months to March 2026 amid investment in new and upgraded hospitals.

Borrowing across road transport and food retailing also increased 17.4 per cent over the year, while deposits held by accommodation, cafes, pubs, and restaurants rose 23.2 per cent.

The growth comes as billions of dollars of public and private investment pour into Greater Western Sydney, supported by new transport links, population growth, and the emergence of new industries across the region.

Strategic finance decisions

Speaking to Broker Daily, Mansour Soltani, director of Soren Financial, said the stronger lending activity was being reflected in business and commercial property finance inquiries on the ground.

“We are definitely seeing stronger inquiry levels across business and commercial finance, particularly throughout Greater Western Sydney,” Soltani said.

“One trend we are noticing is that business owners are becoming more strategic with how they structure their finance. They aren’t just chasing the cheapest rate. They want flexibility, access to capital when opportunities arise and a structure that supports the next stage of their business.

“Overall, Greater Western Sydney continues to benefit from strong population growth, infrastructure investment and a large base of family-owned businesses. Many operators who successfully navigated the last few years are now starting to look at expansion again.”

Soltani also said that the purpose of borrowing is beginning to change.

“Over the past couple of years, many conversations centred around managing cash flow, restructuring debt, or creating breathing room while costs increased,” he said.

“That hasn’t disappeared, but we are now seeing more businesses looking forward again. More clients are asking about purchasing premises, upgrading equipment, hiring staff and positioning themselves for growth.”

He also said that regulatory changes, such as those surrounding SMSF, had also changed lending behaviour, as was also noted in this week’s Finance Specialist podcast.

“Many business owners we speak with are looking to purchase the property they operate out of and many still want to purchase their commercial property via their SMSF (while that is still allowed),” Soltani said.

“With industrial rents increasing significantly in recent years, many established businesses are looking at whether owning their premises offers better long-term control.”

Infrastructure precipitates opportunity

Major transport and infrastructure projects are expected to continue reshaping the region throughout 2026.

Western Sydney International Airport is expected to begin cargo flights in July, increasing Sydney’s capacity by a third, before passenger flights commence in October.

Around the airport, a major industrial district is also taking shape in Western Sydney’s “Aerotropolis.” As of April 2026, the precinct had attracted $28 billion in government investment and $21.7 billion in private capital.

The $2 billion M12 Motorway will connect the airport with the M7 at Cecil Hills and The Northern Road at Luddenham, while the expanding Sydney Metro network is improving connections between communities across the region.

Soltani said: “We’re seeing strong activity from industries connected to Western Sydney’s growth corridor, including construction, trades, manufacturing, logistics and professional services.

“Investment in regional infrastructure, housing and population growth is creating opportunities for businesses that support that expansion.”

Data centres are also emerging as a major new source of investment. Of the $29 billion in data centre projects awaiting approval in NSW, $21 billion is located in Western Sydney.

Chris Thomas, executive, commercial broker and equipment at NAB, said the breadth and depth of these investments reflected the opportunities emerging across the region.

“Greater Western Sydney businesses continue to demonstrate confidence by investing in expansion, equipment and productivity despite ongoing economic uncertainty. That investment reflects the opportunities being created by the region’s growing economy, expanding infrastructure and increasingly connected business community,” Thomas said.

“For commercial brokers, these insights provide valuable context beyond individual transactions. Understanding the trends shaping Greater Western Sydney helps brokers have more strategic conversations with customers, identify emerging opportunities and support businesses as they invest for growth and navigate an evolving economic environment.”

Businesses look forward again

The Western Sydney lending data comes as broader business sentiment has also shown signs of improvement.

NAB’s latest Quarterly Business Survey showed business confidence climbed into positive territory for the first time since 2022, while business conditions rose 5 points to their highest level since 2Q24.

The result marked a turnaround from earlier in the year, when conflict in the Middle East triggered the second-largest fall in business confidence in the survey’s history, despite underlying conditions remaining relatively resilient.

Forward orders have since returned to positive territory after five consecutive quarters of improvement, while expected business conditions over the next three and 12 months climbed to multi-year highs.

However, NAB said it expects some of the recent surge in national business investment to unwind.

Underlying business investment rose 5.7 per cent quarter on quarter in the latest national accounts, driven by a 14.7 per cent increase in machinery and equipment investment.

Shane Ditcham, executive of business metro at NAB, said: “There’s no question the world is facing a period of economic difficulty. And Western Sydney, with its ever-deepening global connections, is not immune.

“Labour markets may remain challenging over the year ahead, but the fact is, Western Sydney employers have access to the broadest catchment of interests, skill sets, cultural backgrounds and educational attainment in the country.

“The median age in Greater Western Sydney is 35 – younger than the greater Sydney, NSW and Australian averages. Consumers are engaged and outward looking, supporting a wide range of local businesses.”

[Related: SME lending tipped as next growth area for brokers]

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