‘Transition period’: Mayor hits back over fears popular Sydney suburb is ‘dead’

The mayor of an affluent Sydney suburb - which locals say has been ruined by backpackers - has offered an excuse for why the main shopping strip is “dead”.

Randwick Mayor Dylan Parker has blamed a “period of transition” for the sharp demise of his suburb which locals say is now “dead”.

The affluent suburb in Sydney’s southeast was voted one of the top 10 most attractive suburbs in the world for wealthy property buyers in 2017 – however, is now seeing business owners flee the area.

News.com.au counted 22 boarded-up shop fronts along the suburb’s main shopping street alone as a result of soaring rents, a lack of parking, an influx of cash-strapped backpackers and the rising cost of living.

Businesses have failed to thrive in Randwick in recent months. Picture: News Corp Australia

News.com.au counted 22 empty shop fronts along the main strip. Picture: News Corp Australia

Following a news.com.au report, Mr Parker went live on Facebook to speak to concerned residents about the problem.

Mr Parker said that while he didn’t “necessarily agree” the suburb was in trouble, he said that rejuvenating the area was a “focus” of the council.

Dylan Parker spoke to residents on Facebook Live. Picture: Facebook

He said the problem was Sydney-wide. Picture: Facebook

He said that the council had implemented a “planning strategy” for the suburb, which had led to an increase in developers’ purchases and put pressure on local businesses.

“I’m not suggesting that is the sole cause but that can also be a contributory factor while town centres are going through a period of transition,” he said.

“We are going through pretty tough economic times all around. Main Streets really across Sydney have been struggling.”

The mayor said the suburb was going through a period of transition due to a new local planning strategy in the works. Picture: News Corp Australia

He also called on locals to “visit” the suburb’s main strip on Belmore Road to make it “an inviting place for people to go”.

“Encouraging a vibrant town centre is something that we all want to see and council we’ve really been putting a lot of effort into upgrading our main strips,” he said.

Business owners plead with council

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 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.

A map of for lease or recently leased commercial properties in Randwick. Picture: Realestate.com

Belmore Road has been hit the hardest by the challenging time. Picture: Realestate.com

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.”

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.

Shops closing their doors

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.

The landlord of the Cookhouse has struggled for years to find a new tenant. Picture: News Corp Australia

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.”

Council responds to criticism

A spokesman 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.”