COVID-19 Parramatta: Economy set to boom after coronavirus
Not even the coronavirus can slow down Parramatta’s booming $14 billion economy, with experts predicting a solid future for Sydney’s second CBD when the pandemic is over.
Parramatta
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Developers and business leaders have instilled their confidence in Parramatta bouncing back to a thriving economy post coronavirus despite fears less people will return to offices in favour of working from home.
Recently, the Property Council of Australia’s office market report revealed commercial vacancy rates rose by 1.3 per cent over the past six months to August from 3.2 per cent to 4.5 per cent.
But the council’s western Sydney regional director Ross Grove said the CBD remained in a strong position despite the COVID-19 pandemic.
“While the world economy is experiencing significant challenges, Parramatta’s office market continues to have the lowest vacancy rate in NSW,” Mr Grove said.
“The change to Parramatta’s office rate is in line with what is occurring on a national level and we should draw a level of optimism from the new stock set to come online and the pre-committed tenancies supporting this stock.’’
As well as Parramatta’s infrastructure projects such as the light rail and Metro network, Mr Grove said its central location meant a shorter commute for the local workforce.
“I’m talking about a place where people can have a 30-minute commute to their workplaces so I think location is a natural strength for Parramatta,’’ he said.
“It’s also in close proximity to the Hills so it serves a large geographical catchment.
“It doesn’t matter who’s in power, everybody wants a strong Parramatta.’’
By the end of the year, Parramatta will have an extra 43,763sq m of office space and 65,122sq m is due for completion next year.
Western Sydney Business Chamber executive director David Borger echoed Mr Grove’s comments about location and said investors were also attracted to Parramatta’s cheaper market — with commercial space often half the price of what Sydney CBD offices command.
He also said Parramatta’s 20,000 parking spots were something Sydney CBD failed to match.
The need for human interaction and securing of longer leases has also instilled confidence in Parramatta’s future, which is attracting a dynamic workforce.
“They’re positions that require innovation and collaboration. We’re social beings and we need to be around others,’’ Mr Borger said.
“I think Parramatta’s future is going to be really bright.’’
Walker Corporation, which is behind the $3.2 billion Parramatta Square — Australia’s largest commercial project — said offices in the square were priced at a third of Sydney CBD’s cost “in a location that is closer to the majority of Sydney’s workforce”.
“Companies are seeking premium office space closer to homes at an affordable price,’’ a Walker Corporation spokesman said.
“We remain in discussions with a number of major companies who are looking to relocate to Parramatta to reduce accommodation costs and travel time.’’
He said at 3 and 4 Parramatta Square, which houses tenants including NAB headquarters and the Planning Department respectively, space was “100 pre-committed.’’
Demand for 6 & 8 Parramatta Square — which will be the nation’s biggest commercial building at 55 storeys — remains strong, with Walker having leased more than 70 per cent of the space, 2 ½ years out from its completion.