Western Sydney Regional Director Ross Grove said the announcement highlights the importance of infrastructure keeping pace with growth.
"Places like Appin have been on the government's planning drawing board for five decades and have the potential to deliver tens of thousands of new homes, but we'll need a new orbital road and substantial investment in water infrastructure to make it all happen," Mr Grove said.
"Planning documents from 1968 projected a population of 170,000 for Appin and surrounds by the year 2000 - however the lack of water and road infrastructure means the entire Wollondilly LGA is less than half that size 25 years later."
"The Greater Macarthur Growth Area has immense potential to contribute new homes to support Sydney's growth. Today's announcement is a step in the right direction, and we look forward to working with the government on practical solutions to turn the best laid plans into action on the ground."
Mr Grove said the initiative aligns with the Property Council's ongoing Jobs Need Roads campaign, which makes the case that housing and jobs will only flow if the road network is upgraded.
"Every new community in South West Sydney and the Macarthur depends on having reliable road connections to get to work, school and services. If we're going to keep delivering the homes we need, we're going to need the roads to match," Mr Grove said.
"Western Sydney has been providing the bulk of Sydney's new housing over the past ten years. Without investment in road capacity and water infrastructure, growth will hit a brick wall, new home builds will slow and there'll be consequences for our quality of life."
Mr Grove said the Greater Macarthur Growth Area should have a significant role delivering future targets, but only if road and water projects are funded and delivered in lockstep with rezoning.
"These roads are the arteries that will keep growth alive in the Macarthur region. If we want homes and jobs in South West Sydney, we need to get moving on the Magnificent Seven," Mr Grove said.
