Brisbane CBD a ghost town amid lingering lockdown effects

The viability of Brisbane’s CBD has been thrown into doubt, with few international students, staff working from home and tourism subdued.

Brisbane’s central business district is in a battle for survival, as soaring vacancy rates and a growing number of stay-at-home workers throw the future of the City into uncertainty.

The CBD, which was brought to a standstill in March as COVID-19 rapidly spread across the nation, has slowly returned to life while the virus remains suppressed.

However the future prosperity of the City has been thrown into doubt, with a lack of international students, staff continuing to work from home and tourism remaining subdued. At Central Station, average daily passenger movements have fallen from 30,000 in July 2019 to 14,000 in September.

A 2020 Inner City Vitality Report, commissioned by the Committee For Brisbane, found the CBD had fallen in all five key economic indicators – commercial and residential vacancies, tourism, retail and education

Sophie Tuffley and Luke Condon on the City Reach boardwalk. Picture: Liam Kidston

The report noted the CBD’s residential real estate market had been “shocked to the core”, with the loss of international students resulting in the vacancy rate ­jumping from 3.6 per cent in June 2019 to 12.5 per cent in September this year.

Committee for Brisbane chief executive Barton Green said the indicators painted a “pretty sobering” picture of the CBD.

“We acknowledge the impacts from COVID-19 and unfortunately, on almost every measure that compared 2020 with data from previous years, our inner-city has performed worse,” he said. “We knew it was going to be tough.”

Mr Green said it was vital governments and businesses now develop a plan – such as subsidised public transport and improved work spaces – to lure staff back into the city.

“The big challenge is with commercial leasing in town where it’s likely that the work-from-home option is now ­permanent,” he said.

“People may be in the office two days a week and at home three and if that is the case, we are going to have a significant reduction in commercial leasing in Brisbane.”

Financial and insurance, scientific and technical services companies make up more than half of the businesses registered within the CBD.

Suncorp Group, one of Queensland’s largest employers, has promoted itself as a leader in “flexible working” and chairwoman Christine McLoughlin told last month’s general meeting that “more hybrid working models are likely in the future”.

Mr Green said despite the CBD’s challenges, retail and tourism was tipped to quickly bounce back.

“One of the big factors was the opening of the borders and that’s now happened so we should see hospitality and overnight tourism stays increase,” he said.

“Queenslanders need to be proud of their capital city because a ­vibrant capital city means a ­vibrant state – it’s the beating heart. It must come back and I’m sure it will.”

Roxanne Van Eyk and Demi Mansfield at Eagle Street Pier. Picture: Liam Kidston

Brisbane’s retail vacancy rate has jumped from less than 1 per cent in 2019 to 1.1 per cent this year, with a ­“significant share of vacancies” located on Adelaide St.

National Retail Association president Dominique Lamb said the boost to the city’s retail scene depended on office buildings being full of workers.

Ms Lamb said Brisbane, which has several retail locations, was well-positioned to take advantage of the expanding commercial scene.

“We need to see activation of locations, like music, entertainment, bands and interesting things for people to come and see to get them out of the suburbs and into Brisbane,” she said.

“We have Howard Smith Wharves and the casino being built, so they’re going to have more retail in there.”

Ms Lamb dismissed concerns that new retail space would add to the difficulty facing existing empty centres.

“Consumers love to touch and feel items and they want to be out and about in a retail setting,” she said.

Despite the CBD’s challenges, Mr Green remains optimistic, citing ongoing infrastructure development in the education, residential and tourism sectors.

“Three more hotels are under construction as part of the Queen’s Wharf redevelopment, which will deliver some 1100 additional rooms including the six-star Ritz-Carlton and five-star Rosewood and Dorsett Hotels,” he said.

Griffith University’s proposal to build a 55-storey education and accommodation high-rise as part of the Roma Street redevelopment has also been hailed as a game changer for the city.

Windsor’s Luke Condon and Sophie Tuffley spent ­yesterday celebrating a friend’s birthday at a riverfront venue, and said the area was “a great way to spend their Sunday”.

But the couple said they understood why CBD establishments were struggling.

“We know a lot of people are out of work, so spending money out isn’t something they probably want to do,” Mr Condon said.

Demi Mansfield, from Ascot, and Perth resident Roxanne Van Eyk said they were surprised at the number of CBD venues still closed, but “the outskirts are really bustling”, Ms Mansfield said.

BY THE NUMBERS

Residential vacancy rate: 12.5 per cent (up from 3.6 per cent in Jul ‘19)

Commercial vacancy rate: 12.9 per cent (up from 11.9 per cent Jul ‘19)

122,438 workers employed in CBD (2016 Census)

218,000 people tipped to work in the CBD by 2041

Median unit price $465,000 (down from $495,000 in 19)

12,490 residents live in the CBD

7585 hotel rooms available

12 major shopping precincts within the CBD

30m shoppers visit the Myer Centre annually

Queen Street Mall attracts 70,000 visitors daily

CBD hosts 35,900 university students

Education sector accounted for 39 per cent of employment growth between 2011 and 2016

Originally published as Brisbane CBD a ghost town amid lingering lockdown effects