Project Sydney: The CBD, our new place to call home

EXCLUSIVE: Once regarded as purely a “working city”, the growing number of residential apartments will see the number of city locals jump to 35,000 by 2020.

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ONCE regarded as purely a “working city”, Sydney’s CBD is finally becoming a place where people want to live.

New statistics show the population of the central city will smash the 35,000 barrier by 2020, more than 10 times its 1990 levels.

A new study, conducted by BIS Shrapnel for The Daily Telegraph, based on central Sydney’s pipeline of projects from Haymarket to The Rocks, shows there will be a huge spike in CBD projects through to 2020.

From Haymarket to The Rocks, there will be a huge spike in CBD projects through to 2020.

Rush hour... A further 55 per cent of the CBD population is now made up of young professionals without children who want to live and work in the city.

There are just over 28,000 people living in the CBD. But a further 4300 apartments will be built through to 2020.

Based on average occupancy rates across the city of 1.7 people per apartment, this will mean another 7300 people will be living in the CBD by the new decade.

This will take the CBD’s population to an unprecedented level of about 36,000 people, compared with a mere 3500 in 1991.

The CBD population is also ­becoming more cosmopolitan than ever. The BIS Shrapnel research shows that, based on specially run ABS Census data, students — primarily from overseas — now make up 15-20 per cent of the CBD population. A further 55 per cent of the CBD population is now made up of young professionals without children who want to live and work in the city.

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The remaining 25-30 per cent are “empty nesters” — older, sometimes retired people who have adult children and have chosen to downsize.

“There has been a broader shift in Sydney towards apartment living and the CBD has become ground zero for this trend,” Angie Zigomanis, the head of BIS Shrapnel’s residential property unit, said.

“Rising residential values have ­enabled developers to ramp up apartment construction in the CBD to meet this rapidly rising demand.”

He also pointed to the fact that the CBD had become more resident friendly, with the emergence of more Coles Express and Woolworths Metro stores in the city, amid the more traditional city retail stores like clothing and department stores.

Mr Zigomanis said that with the prices of units starting to slow, there were signs the apartment boom could start to level off after 2020, with ­developers likely to find commercial development relatively more attractive amid a shortage of CBD office space. Meanwhile, there are already stories of gazumping in the commercial leasing market in the CBD ­because of lack of supply.

New place to call home... Ashley Lazar and friend Danielle Steel in Hyde Park. Picture: Dylan Robinson

Lee Walker, BIS Shrapnel commercial property project manager, said the Sydney CBD commercial property market was heading towards a “serious shortage of supply, because after Barangaroo, not much office space is being built and plenty is being converted into residential”.

Additionally, some commercial supply is also being withdrawn to make way for the Sydney Metro that heads through the city on the way to Rouse Hill, he said.

Mr Walker predicted that from 2016 to 2018, more than 270,000sq m of CBD space will be withdrawn in favour of the metro, residential conversion and longer-term redevelopment. “The NSW government so far has  bought  back more than 60,000sq m of existing CBD office space for the metro project,” he said.

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“The CBD vacancy rate currently sits at 5.6 per cent. Within the next year or two, we forecast it will halve to below 3 per cent, and stay tight until 2020, after which there is likely to be a major construction boom to meet the lack of supply.”

Ashley Lazar, 26, who lives on Sussex St and runs her own fashion business, Dressedup, with her partner, said living in the heart of the city provided her with a great work-life balance.

“It only takes me seven minutes to get to and from work,” Ms Lazar said. “Running our own business and working in the city make life much easier.”

Her friend Danielle Steele, 28, said she often enjoyed hanging out in town with Ms Lazar.

Parra Stadium a step closer

EXCLUSIVE

NICK TABABKOFF

THE $300 million knockdown and rebuild of Parramatta Stadium is a step closer, with bids closing last week for three international consortiums that worked for three months to fulfil the design brief for the new 30,000-seat venue.

The consortiums, led by Lend Lease, Multiplex and John Holland, are all in contention for the new home to the Parramatta Eels and Western Sydney Wanderers in Sydney’s second CBD, which is due to be completed by 2019.

The proposed Western Sydney Stadium in Parramatta CBD.

The design-and-build tender closed last Friday, with word there is no clear favourite emerging from the process.

The winning consortium will be named in December, and the project will generate 1200 jobs during construction.

The consortiums have enlisted design teams responsible for some of the most recognisable stadiums in the world, including Singapore’s National Stadium, Arsenal’s Emirates Stadium in London, the new Adelaide Oval and Brisbane’s Suncorp Stadium.

Once the new Western Sydney Stadium is operational, the government body Venues NSW will run it. The project is expected to generate 600-900 jobs once it is operational for major events, ­including rugby league, soccer and rugby union, along with concerts, markets and fairs.

Activity at the existing Parramatta Stadium has largely wound down, with demolition expected to start by early next year.