‘It’s just dead’: Sydney suburb ‘killed off’ by backpackers
It was once named one of the most desirable suburbs in the world - but now its “dead” with even the local bank shutting up shop. Here’s the enraging reason why.
Economy
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Business owners are pleading with council to rejuvenate what was once one of Sydney’s most up-and-coming suburbs which locals say is now “dead” due to an influx of backpackers and increasing rent prices.
Randwick in Sydney’s south-east was voted one of the top 10 most attractive suburbs in the world for wealthy property buyers in 2017 – but now features 22 empty shop fronts on its main shopping street alone.
Local business owners say the issue has become desperate in the last two years with many citing the rise of backpackers in the area, a lack of parking and the cost of living crisis for the lack of business.
Owner of Tek’s Gifts & Things Yunus Chen has had his store on Randwick’s main strip – Belmore Street – for 24 years and said things have never been so bad.
Mr Chen he pays $60,000 a year in rent for the shop.
“There is no business in Randwick. The rents are too high and mortgage repayments are too high,” he told news.com.au.
Mr Chen said he believed it was the rise in backpackers living in Randwick who don’t have disposable income to spend locally.
“They’re not going to buy things for their homes,” he said.
“The pubs are making a killing but that’s about it.”
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Shaney Ung, who took over the ownership of Simon’s Pharmacy six years ago, said parking also played a major role.
Simon’s Pharmacy has been at Randwick for 70 years.
Ms Ung said there used to be a lot more parking – particularly at the northern end of Randwick – however, the land has now been used now to develop housing.
“Council has knocked back even just having a disabled parking spot out the front of the pharmacy,” she said.
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Local auctioneer and real estate agent Graeme Smedley said about one in ten businesses in the suburb had been forced to shut in the last two years.
Mr Smedley said a lack of a plan and future vision from the council for Randwick was to blame.
He said a lot of the recent independent businesses that have opened up in the main street are gone within the year.
“You could shoot a gun down the main street and not hit anyone after 5pm. It’s just dead.” he said.
“[Council’s] job is to help the businesses make money. Twenty-five years ago, Randwick was busy. But now other suburbs nearby are on fire and the fire has been put out in Randwick.”
Mr Smedley recently found a renter for one of Randwick’s most popular commercial sites – a sandstone building that used to house gastropub The Cookhouse.
When the landlord came to him, she said she had been trying to find a tenant for the building since December 2022. El Jannah is now moving in the coming months.
He said a lack of parking and the influx of backpackers – who often spend at the beachside suburbs and not Randwick itself – were also to blame.
Mr Smedley said the issue has been made worse since Covid-19 – and that with the cost of living crisis – Randwick is unlikely to ever return to its former glory.
Even ANZ bank has closed down its branch recently on Belmore Street.
“When the banks go, that’s the nail in the coffin,” he said.
“The residential prices have gone but the commercial market has been suffering.”
A spokesperson for Randwick City Council told news.com.au business had slowed in the area due to customers choosing to “shop online and cut back on spending in the cost-of-living crisis.
“The businesses located on Belmore Road and other high streets are the engine of the Randwick City economy, strengthen our community and give Randwick town centre its unique local character,” they said in a statement.
“Randwick Council works with local business by supporting the business networks and by transforming our high streets into destinations; places people wish to visit and spend time and money.”
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Originally published as ‘It’s just dead’: Sydney suburb ‘killed off’ by backpackers
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