Sydney's growth areas to get 13,000 homes

Transport and services must be in place when people move into the 13,000 new homes earmarked for Sydney's major growth centres, businesses have warned.

NSW Premier Barry O'Farrell has announced 10,000 homes will be built in Sydney's northwest with another 3000 in the region's southwest.

"Home ownership in Sydney remains a dream for many young families," he said on Tuesday.

"My government will build the homes Labor failed to provide and ensure residents have jobs and services on their doorstep."

The decision has been met with cautious support from the Sydney Business Chamber, which says the government needs to also deliver jobs, services and public transport.

"The lesson to be learned from the previous government is to deliver jobs, services and transport when people move into their new homes, rather than five, 10 or 20 years later," said the organisation's executive director Patricia Forsythe.

The plan is for a 1800 hectare site at Marsden, predominantly owned by Wintern property group, to contain 10,000 medium density homes.

Building is expected to start in about two years with the remaining 800 hectares set aside as open space.

Image: Getty