Proof our cities are officially ghost towns as parking fees slashed and public transport falling off a cliff

If Aussies needed any further proof that our cities are ghost towns, the rates of CBD parking might be an unlikely but accurate indicator.

If Aussies needed any further proof that our cities are turning into ghost towns, the rates of CBD parking might be a good, but often overlooked indicator.

Prior to Covid-19, it was difficult to source regular parking spaces with long wait lists and high prices for both fixed term and casual parking, notably in Sydney and Melbourne’s CBDs, with limited discounts on offer.

But since the pandemic, there has been massive discounting, with early bird and online parking slashed.

According to analysis by Ray White casual parking rates over the last ten years have shown little movement, thanks to an overall decrease in demand.

Take Sydney, the most expensive market in the country.

The current daily CBD rate sits at $85.05, growing by just 1.73 per cent per annum over the last ten years.

Analysis of discount parking in 2023. Picture: Ray White

Brisbane CBD, known historically for its expensive parking facilities, has an average daily rate now of $82.61, experiencing just 2.18 per cent annual growth, ahead of Melbourne CBD at $68.19, which has only appreciated 0.49 per cent per annum over a 10 year period.

Early bird discount parking also reinforces the situation, with Melbourne CBD offering the greatest discounts at a whopping -66.2 per cent, followed by Brisbane CBD -58.7 per cent and Sydney CBD -57.6 per cent.

Analysis of CBD parking comparison 2019-2023. Picture: Ray White

Head of research at Ray White Vanessa Rader told news.com.au the heavy discounting on pre-book parking spaces online and also early bird parking indicates “excess inventory”.

“Our recent analysis shows a significant saving offered for those who pre-book parking spaces online … on average the daily rate receives a -40.7 per cent discount — drastically changing the average daily rate and actually providing rates well below rates charged 10 years ago,” she said.

“Similarly early bird parking which historically has provided cost savings within a rigid entry and exit time has seen more flexibility and broader times to come and go and offer on average a -57.6 per cent discount on the daily rate”.

Transport for NSW data also indicates that Sydney’s CBD has not recovered from the pandemic.

In June 2023 there were 17 million Opal trips, compared with roughly 24 million in June 2018 - a difference of 7 million.

A Transport for NSW spokesperson told news.com.au that it was “pleased” to see patronage increasing before admitting there is “still some way to get back to pre-Covid levels”.

Opal trips in Sydney CBD. Picture: Transport for NSW

In fact, some experts believe our CBDs will never recover their pre-pandemic shape.

Repeated calls for Aussies to return to the office appear to have fallen on deaf ears, leading to an increasing number of businesses making the decision to downsize their CBD offices or give up their leases completely.

David Harding, executive director of Business NSW, who in March released a new analysis entitled Revaluing Sydney’s CBD, told the Financial Review the focus on returning to the CBD of the past, particularly on getting people back to CBD offices, was a furphy.

Many businesses are considering moving their operations to Melbourne from Sydney as a result of high rents and low warehouse vacancies. Picture: William West/AFP

“The words revival and bounce-back are slightly disingenuous,” he said.

“The CBD really has changed forever. What we’re seeing now is not a recovery. It’s a rebalance.”

Business NSW is calling for the older towers, particularly those headed for empty obsolescence, to be reinvigorated with “vibrant vertical communities”, including offices, childcare, teaching facilities, gyms, hotels, healthcare and particularly new apartments.

“Buildings that work 24/7 are better for cities, and better for people, compared to buildings that only operate office hours,” said Mr Harding.

Wilson Parking and Secure Parking were contacted for comment for this article but did not respond at time of publishing

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Originally published as Proof our cities are officially ghost towns as parking fees slashed and public transport falling off a cliff