The game-changers for accessing capital cities' CBDs

Jennifer DukeDecember 7, 2020

A new report has been released highlighting the critical condition of accessibility Australia's largest CBDs are experiencing, providing a 'game-changer' for each city that will shape residential demand in years to come.

The Tourism & Transport Forum's (TTF) report, Accessing Our CBDs, analyses how to improve transport in the CBDs of Australia's five biggest cities and how this will shape them, and the surrounding areas.

"In recent years, CBDs and inner suburbs have been subject to rising residential demand. In Adelaide for example, the number of dwellings in the city centre increased by approximately 25 per cent between 2006 and 2011," the report explains.

"To realise the full potential of a city, it is important that linkages between its CBD and broader metropolitan area are continuously upgraded to cater for the additional travel demand generated by population growth and increased employment."

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As the population continues to expand, particularly in greenfield urban fringe developments, the average distance travelled by car also tends to increase and so transport links become increasingly more important and valuable to residents.

Investors are certainly aware of the importance of infrastructure and accessibility when it comes to capital growth in their area, and tenant demand.  We've also previously provided a list of 34 infrastructure developments that may be of interest.

In cities where population forcasts are strong, these issues become even more critical to be aware of early.

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TTF deputy chief executive and director, Transport Policy, Trent Zimmerman said it is largely this issue of growing population that is putting the pressure on our CBDs.

“The level of urbanisation and concentration of activity in Australian city centres means that together they are the engine room for Australia’s economy,” Zimmerman said.

“However, the high density of CBDs also creates numerous challenges for mobility and connectivity."

With this growth putting pressure onto the strained transport network, it's interesting to note that the report has found that a significant proportion of this growth is occurring on the outskirts of the major cities.

"In Sydney, for example, the north-west and south-west growth centres, which have been planned to accommodate around 181,000 new dwellings, are located on the fringes of Sydney. Significant population growth is also occurring on the outskirts of Melbourne, specifically in Cardinia in the south, and Wyndham and Melton in the west," the report outlines.

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Dispersed employment is flagged as part of the approach to diversify travel patterns and keep the heat off of the infrastructure. For instance, Sydney's polycentric employment locations with the development of secondary CBDs, such as Parramatta, has seen some level of success. Similar trends are proposed for Melbourne, which may provide investors to get in to the Victorian equivalent of Sydney's Parramatta.

The 'game-changer' proposals:

Sydney

Current situation: CBD is the largest employment centre, with a job density of almost 70,000 workers per sqkm, largely concentrated on the northern end of the CBD. Also has one of the fastest growing residential populations.

Forecast situation: An estimated growth from 4.3 million inhabitants to 5.6 million in 2031.  Within the City of Sydney LGA, employment is expected to grow by 31%, and population by 60% between 2006 and 2036.

Barangaroo will add significant demand, with expectations of 33,000 visitors attracted daily. 

New rail projects including the North West and South West Rail Links are outlined, however neither is said to provide relief to CBD.

Much of the game-changing plans will be to direct attention away from the City of Sydney and towards the development of regional centres, such as the 20 strategic centres recently identified by the NSW government.

Some of the solutions: Northern Beaches Bus Rapid Transit; Light Rail Extension; Wynyard Walk; Long-term rail strategy; Sydney’s missing-link motorways; Additional ferry services to Barangaroo.

Melbourne

Current situation: Within the City of Melbourne in 2008, 413,281 people were employed, with 252,959 in the CBD. Over 21,000 are housed in the CBD, which grew by 34.4% between 2005 and 2010.

Forecast situation: Population estimations are that Melbourne's population will grow from 3.5 million in 2006 to 5.4 million in 2031. Within the CBD, a growth rate of 93% is expected over the 20 years to 2031. 

Growing residential and commercial development in Southbank and Docklands will also push up demand on the transport network.

Victorian government and the City of Melbourne have acknowledged that transport connections will have reached capacity by 2031.

Some of the solutions:  East-West Link; Port of Hastings; Regional Rail Link; Metro Tunnel Rail Project.

Brisbane

Current situation: More than 140,000 employees worked in the CBD in 2006, in the CBD, there are an estimated 8,500 residents.

Forcast situation: Between 2006 and 2026, population growth will be at 2% per annum to reach 2.7 million. CBD employment is expected to rise at 3% per annum. 

CBD is expecting substantial residential development, with another 18,000 dwellings over this time period.

Some of the solutions: Changing bus routes and servicing; Construction of Cross River Rail project; Upgrades to ferry terminals; Development of additional bus stations; Completion of TransApex road projects.

Perth

Current situation: More than 1.6 million residents in 2010 in all of Perth. In 2011, approximately 75,181 journeys to work were undertaken to the CBD. 

Forecast situation: Population with grow by 35% to over 2.2 million by 2031 (Western Australian Department of Planning). Up to 429,000 jobs will be needed to cater for the growth.

State government announced $105 million of funding to address CBD congestion in April 2012, including widening the Graham Farmer Freeway and increasing lane capacity on the Mitchell Freeway.

Specialist hubs are also being promoted, including Stirling which is creating 25,000 jobs.

Proposed initiatives: The Perth City Link projec;. Enhancement of buses and rolling stock; Park and ride.

Adelaide

Current situation: CBD catered to 109,904 jobs in 2011, and had 19,900 residents in the City of Adelaide.

Forecast situation: Population is expected to grow 2.9 to 3.6% per annum to 38,565 in 2031.

Another 450 new dwellings per annum are expected with the majority in the eastern and southern CBD areas.

Proposed initiatives: Greenways project; North-South Corridor; Rail Revitalisation Project.

For a full copy of the report head onto the TTF website.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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