Development approval has been granted for the $665 million expansion of <a href="https://www.apartments.com.au/new-apartments/trinity-point-estate-81-trinity-point-drive-morisset-park">Trinity Point</a>, marking a major milestone for what is set to become one of Australia’s largest waterfront developments.&nbsp;

Located on a 23-hectare site on Lake Macquarie, the masterplanned community by <a href="https://www.apartments.com.au/developers/johnson-property-group">Johnson Property Group</a> will introduce a new scale of coastal living to the region, underpinned by sustainability, landscape-led design, and a focus on placemaking.

Designed by <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada Architects</a> with landscaping by <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, the development will deliver a 153-room luxury hotel, 160 waterfront apartments, and a mix of retail, dining, wellness, and conference facilities. Key features include two 300-seat signature restaurants, a spa and wellness offering, a 300-seat function room, and a collection of pools, bars, and landscaped public areas.

“This project is about putting Lake Macquarie on the global stage,” said Keith Johnson, Founder of Johnson Property Group. “We’re not just building something beautiful, we’re creating a destination that showcases the very best of the region.”

<img alt="Trinity Point Estate - 81 Trinity Point Drive, Morisset Park" data-entity-type="file" data-entity-uuid="0775e02c-5402-46e4-ba48-e4bbf087a923" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/68218522911bbca3fbe25939_67d2081d6ce812cf2a9c3fb8_KOIC11165_Trinity%20Point%20-%20Addendum_E01_View%20from%20water_A3_croppped.jpg?VersionId=8Q2yOSwSOvMK7qBawrTLbahtavm5eyH1" />

The project’s architecture and landscape design are deeply informed by the natural and cultural context of the site. Arcadia undertook a Connection with Country workshop in collaboration with local Elders to understand the stories of land and water, resulting in a landscape approach that honours the Awabakal people's cultural heritage.

Trinity Point was historically significant for its Aboriginal occupation, providing food and spiritual connection through its relationship with Lake Macquarie and the surrounding Watagan Mountains.&nbsp;

Arcadia’s design response incorporates native planting, sculptural elements, viewing decks, and materials that reflect the surrounding ridgelines and sandstone outcrops.

<img alt="Trinity Point Estate - 81 Trinity Point Drive, Morisset Park" data-entity-type="file" data-entity-uuid="c4db7d3a-3a03-4834-a9e0-cc74dc60ac64" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/6888542fa954f63bd565c684_IN03_Hotel%20To%20View_A3RGB.jpg?VersionId=IXgYtO5fI3xveOG0ZRq.LuNA__GJOoeC" />

With the Central Coast and Lake Macquarie region experiencing strong population growth and increased interest from owner-occupiers and lifestyle-focused buyers, Trinity Point responds to a clear demand for high-quality, amenity-rich housing.&nbsp;

The project is expected to inject over $588 million into the local economy through construction contracts and long-term employment once operational.

Already home to the 94-berth Trinity Point marina and the acclaimed ‘8 at Trinity’ restaurant, the next stage cements the area’s evolution into a premium lifestyle destination.&nbsp; An expanded marina (up to 188 berths) and new wellness and hospitality offerings will support both local and visitor demand.

[smartcode_project_cta:default project_id=14893]

Joel Robinson

Trinity Point’s $665 million masterplan approved in Lake Macquarie

The NSW Government will take the lead in rezoning the Burwood North Metro Precinct, that could deliver around 15,000 new homes near the future Sydney Metro station, creating new housing and job opportunities close to transport and services. 
 
The new Burwood North Metro Station provides a once-in-a-generation opportunity to create a thriving inner-west precinct near a world class metro line, just four stations away from the Sydney CBD. 
 
Centred around the new Burwood North Metro Station, the rezoning will deliver a new precinct supported by major public transport links and open space, while rejuvenating another part of the Parramatta Road corridor. 
 
The current Burwood train station and Parramatta Road bus links are also nearby, along with strong local schools and shopping precincts, with the Parramatta River a short distance away. 
 
Burwood Council and Canada Bay Council have both progressed individual masterplans to deliver homes in their Local Government Areas. The NSW Government will build upon the Councils’ plans as well as identify further opportunities for residential growth to better respond to the future Sydney Metro station. 
 
The rezoning is being progressed through the State Significant Rezoning Pathway, which was introduced by the Minns Government to fast-track major rezoning proposals. The State Significant Rezoning Policy, introduced in September 2024, fast tracks the rezoning of key precincts, and existing planning proposals delayed in the planning system. 
 
NSW is in need of bold housing solutions. Sydney is the second least affordable city in the world, with house prices having significantly outstripped wage growth over the last two decades. 
 
A key focus of the state-led rezoning will be to deliver precinct-wide infrastructure that will enable essential services and amenities to be delivered alongside the new housing. 
 
The Department of Planning, Housing and Infrastructure will now work with both councils and the relevant state government agencies to progress the rezoning, with a draft masterplan expected to be exhibited in the first half of 2026. This will be followed by a final precinct masterplan, at which stage development applications can be lodged under the new planning controls. 
 
This new site builds on the NSW Government’s earlier announcements of state-led and state-assessed rezoning projects. To date, 25 projects have been progressed as state rezonings, with the potential to enable the delivery of an estimated 60,000 homes and 68,000 jobs.

The Urban Development Institute of Australia (UDIA) NSW, says the NSW Government’s decision to lead the rezoning of Burwood is an essential move to unlocking much needed housing supply, accelerating the planning system, and ensuring coordinated infrastructure delivery.&nbsp;

“The NSW rezoning process is currently one of the slowest in the country. Any action that helps to speed this up, particularly in well-located areas like Burwood North, should be welcomed,” said UDIA NSW CEO, Stuart Ayres.&nbsp;

“New homes start with rezoned land. That’s why we’re encouraged to see the NSW Government stepping in to lead the process at Burwood North. The more the State can be involved in finalising these complex rezonings, especially where boundaries are shared, the better the outcomes for everyone."

NSW Government to rezone Burwood North and trigger 15,000 new homes near future Sydney Metro Station

<a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a>, in partnership with Hankyu Hanshin Properties, has achieved strong sales success with the launch of <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a>, the most elevated and luxurious release to date in the $5 billion Melrose Park masterplanned community in north-west Sydney.

Around $30 million worth of apartments, across 35 sales, was secured within four hours of the release, marking one of the strongest launch results at <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a>. Priced between $645,000 and $1.5 million, Aeris set a new benchmark for the precinct, with two-bedroom apartments eclipsing the $1 million mark, significantly higher than comparable offerings in previous stages.

[smartcode_project:default project_id=426 project_image_fid=4945]

Veronica Papaianni, Sales Manager, Apartment &amp; Mixed-Use Developments at Sekisui House Australia, said the sales results confirmed both the strength of the market and the growing demand for premium apartments in master planned communities.

“Aeris captured the attention of buyers with its elevated location, luxury finishes and new product types including two-bedroom residences with dedicated multipurpose rooms, a first for Melrose Park,”&nbsp;Papaianni says.

“The response was immediate with over 200 people attending the launch and 35 apartments sold launch day. Owner occupiers made up over half of all purchasers, an exceptional outcome for a high-rise apartment building and a strong indicator of the desirability of Aeris as a place to live, not just invest."

[smartcode_project:default project_id=426 project_image_fid=4946]

Apartments sold were evenly split between one and two-bedroom configurations, with strong demand from young couples, professionals, downsizers and first home buyers. The introduction of adaptable layouts, such as dual key and multi-generational residences, also expanded buyer interest.

“The record result builds on renewed buyer confidence following two interest rate cuts earlier this year, with another cut widely anticipated next week,"&nbsp;Papaianni added.

"The interest rate reductions have definitely contributed to the sales momentum and buyer optimism. We are seeing more people engage with the market, particularly owner occupiers who feel now is the right time to secure a high-quality home in a future focused location.”

[smartcode_project:default project_id=426 project_image_fid=4948]

Positioned at the highest point of the 30-hectare Melrose Park site, Aeris offers panoramic views of the Parramatta River, Sydney Olympic Parklands and the surrounding neighbourhood. Every apartment includes Miele appliances, timber flooring and smart home integration with residents enjoying access to a rooftop pool, gym and outdoor cinema.

“The success of Aeris further elevates Melrose Park’s standing in Sydney’s competitive property landscape. Aeris reaffirms Melrose Park’s position as one of Sydney’s most ambitious urban renewal projects," Papaianni continued.

"Its green spaces, future Town Centre (set to open in 2026), Melrose Park High School and connectivity to the Parramatta Light Rail Stage 2 connection, make it a highly attractive proposition for both owner occupiers and investors.”

There will be 468 apartments across the 21- and 23-level towers. Only the first of Aeris’s two towers has been released to date, with the next release expected in early 2026.

Construction of Aeris is anticipated to commence in late 2025, with the first lower tower due for completion in Q4 2027 and the second tower expected in 2028.

[smartcode_project_cta:default project_id=426]

Apartments sold were evenly split between one and two-bedroom configurations, with strong demand from young couples, professionals, downsizers and first home buyers

Strong buyer response to Aeris, Melrose Park’s latest stage

Melbourne is continuing its bounce-back from bottoming out of the property market earlier this year.

The gains are modest, but have been continuous now for the last three months. Dwelling values, which incorporate both houses and units, rose 0.4 per cent in July, according to Cotality's latest Home Value Index.

Unit values lifted 0.4 per cent over the month, following gains of 0.3 per cent in June and 0.4 per cent in May.

On an annual basis, Melbourne unit values are still 0.8 per cent below where they stood a year ago, highlighting the lag in the apartment sector’s post-pandemic recovery.

Median unit values now sit at $621,281, while Melbourne’s house median is $952,339, a gap of over $330,000.

Melbourne’s quarterly growth of 1.2 per cent across all dwellings placed it behind most capitals, though the broader mood is lifting with rate cuts and construction confidence slowly returning to the market. Cotality notes that the supply-demand imbalance remains a key driver of price resilience, with listings well below average and annual sales slightly above trend.

<h2>What happened in Melbourne’s off the plan apartment market in July?</h2>

There were key milestones across several major developments in Melbourne over July, from new releases to construction advancements, in both Bayside and Melbourne's inner ring.

<a href="https://www.apartments.com.au/developers/gamuda-land">Gamuda Land</a> topped out <a href="https://www.apartments.com.au/new-apartments/fareham-st-kilda-95-st-kilda-road-st-kilda-vic-3182">Fareham</a>, its sculptural residential tower on St Kilda Road.

<a href="https://www.apartments.com.au/builders/markscon">Markscon</a> has completed the 16-storey structure and remains on track to deliver the entire building by early 2026.

[smartcode_project:default project_id=137950 project_image_fid=281436]

“Topping out marks more than just structural progress - it represents our long-term vision to create sustainable, well-integrated neighbourhoods that add real value to the communities around them,” said Jess Teng, Chief Operating officer, Gamuda Land.

Fareham, one of the few new developments currently on the market in St Kilda, responds directly to its location along the iconic St Kilda Road. The project is targeting an average 8-star NatHERS rating, well above standard requirements for new apartment buildings.

Read more: <a href="https://www.apartments.com.au/news/vic/gamuda-land-tops-out-fareham-on-st-kilda-rd">Gamuda Land tops out Fareham on St Kilda Rd</a>

In the inner north, <a href="https://www.apartments.com.au/developers/beulah">Beulah</a> revealed a new sustainable townhouse collection at its <a href="https://www.apartments.com.au/new-townhouses/brunswick-established-23-hodgson-st-brunswick-vic-3056">Brunswick Established</a> precinct.

The collection, known as ‘The Courtyard House’, has been created in collaboration with <a href="https://www.apartments.com.au/architects/six-degrees-architects">Six Degrees Architects</a> to meet the evolving needs of modern families.

The release comprises 15 two and three-bedroom homes centred on a communal courtyard.

[smartcode_project:default project_id=136451 project_image_fid=270371]

With a central courtyard at its heart, the design reimagines the possibilities of multi-generational living, blending flexibility, sustainability and personalisation within a heritage setting. Distinct from a traditional garden, the courtyard delivers natural light, fresh air and a generous sense of space, without the upkeep of a backyard.

“The modern home should flow from inside to outside - the courtyard provides a space which joins the different parts of the home together as the central outside space of the home,” explains Six Degrees Director, Peter Malatt.

Brunswick Established is now 70 per cent sold.

Read more: <a href="https://www.apartments.com.au/news/vic/beulah-release-sustainable-courtyard-townhouse-collection-at-brunswick-established">Beulah release sustainable courtyard townhouse collection at Brunswick Established</a>

In Melbourne's west, <a href="https://www.apartments.com.au/developers/spacious-property-development-group-pty-ltd">Spacious Property Development Group</a> confirmed that residents will begin moving into <a href="https://www.apartments.com.au/new-apartments/voyage-altona-102-106-pier-street-altona-vic-3018">Voyage Altona</a> this spring, as builder Ironside pushes through final works.

Positioned within the <a href="https://www.apartments.com.au/developments/altona-vic-3018">Altona</a> waterfront precinct, Voyage offers coastal apartments set within landscaped surrounds. Voyage is the only new apartment offering currently on the market in Altona.

[smartcode_project:default project_id=112195 project_image_fid=2146]

The developer flagged the start of settlements as a key moment for the precinct, which forms part of a broader long-term vision for Altona’s transformation.

Prices start from just over $500,000 for one-bedroom apartments, with three-bedroom configurations topping out just over the $1 million mark.

Read more: <a href="https://www.apartments.com.au/news/vic/buyers-to-move-into-voyage-altona-this-spring">Buyers to move into Voyage Altona this Spring</a>

City Beat July 2025: Melbourne values continue to trend upwards

For the first time in four years, a new apartment development has launched in the growing North Sydney commercial and retail hub.

Several years in the making, national apartment developer <a href="https://www.apartments.com.au/developers/casa">CASA</a> has unveiled <a href="https://www.apartments.com.au/new-apartments/the-mclaren-north-sydney-45-mclaren-street-north-sydney-nsw-2060">The McLaren</a>—a boutique collection of just 71 apartments in a striking, stepped building ideally located on McLaren Street, on the edge of North Sydney’s vibrant lifestyle precinct.

[smartcode_project:default project_id=141323 project_image_fid=3191]

The McLaren is just a stone’s throw from the new Victoria Cross Metro Station, part of the expanded Sydney Metro network that’s attracting buyers from North Sydney through to Castle Hill.

CASA engaged renowned architects Bates Smart to design the project. Boutique by city centre standards, where developments often reach soaring heights and feature hundreds of apartments, The McLaren stands out for its intentional, considered design.

What’s immediately evident is the care taken to maximise apartment outlooks. The building rises to just 14 storeys - also relatively modest for the area - but cascades downwards to create expansive terraces and a sculpted rooftop garden offering panoramic views across Sydney Harbour and the CBD skyline.

The McLaren’s podium pays homage to the site’s fine-grain, leafy character. It sits adjacent to heritage-listed properties and near the Walker and Ridge Streets Heritage Conservation Area.

[smartcode_project:default project_id=141323 project_image_fid=3193]

The development offers a diverse mix of apartments, ranging from one to four bedrooms. More than half are generously sized three-bedroom residences, catering to the local downsizer market. Selected apartments feature natural stone benchtops, Gaggenau appliances, and a refined interior palette inspired by the local landscape.

The McLaren also includes a rare collection of terrace homes that echo the scale, materiality, and character of North Sydney’s Victorian-era dwellings—particularly those along nearby Walker Street.

[smartcode_project:default project_id=141323 project_image_fid=3194]

All McLaren residents, whether in a terrace home or apartment, will enjoy exclusive access to resident-only amenities, including a rooftop garden terrace, private dining and wine cellar facilities, and a lounge area designed for entertaining and relaxation. A ground-floor retail space and a new public through-site link connecting Walker and Harnett Streets will further enhance local vibrancy and walkability.

[smartcode_project:default project_id=141323 project_image_fid=3196]

Colliers is receiving strong interest from local downsizers and working professionals who are drawn to the connectivity of North Sydney, and the convenience of being just one metro stop from the Sydney CBD for both work and leisure.

CASA, established in 2010 as a private real estate fund backed by global institutional investor GFM, has recently expanded its residential development pipeline nationally, with two additional projects in Melbourne and another in Byron Bay.

[smartcode_project_cta:default project_id=141323]

CASA reveals The McLaren, North Sydney's newest apartment development

Commuters

<html><body>
GUEST OBSERVATION
We all know the feeling. You’re on your way to an important appointment when disaster strikes.
A glitch in the transport matrix leaves you <a href="https://www.propertyobserver.com.au/https://mobile.abc.net.au/news/2019-10-11/sydney-train-delays-after-signal-failure/11592818?pfmredir=sm&amp;sf221276741=1" target="_blank">waiting for a train that never arrives</a>, or in <a href="https://www.smh.com.au/politics/federal/sydney-melbourne-coming-to-a-standstill-as-infrastructure-struggles-20190812-p52g9n" target="_blank">bumper-to-bumper traffic</a> with little chance of making it to your destination on time. If you are like me, you may wonder: why are our transport systems so fragile, and how could we make them more resilient?
The answer may lie in the infrastructure we provide for the <a href="https://www.cbinsights.com/research/report/micromobility-revolution/" target="_blank">emerging trend of micro-mobility</a> – devices that are small, light and usually electric-powered. Greater investment in a micro-mobility network could improve the reliability of our current transport system, which offers two main networks in road and rail for journeys that are not walkable. This micro-mobility network can be developed by greatly improving the fragmented bicycle networks in our cities.
To understand how this could improve our overall transport system, we must first look at how transport projects are funded and how diversification and redundancy can make up for shortcomings in this process.
<h2>Selecting the best transport projects</h2>
When deciding which projects to build, transport agencies rank projects using a benefit-cost ratio (BCR). This number is the predicted benefits of a project divided by the predicted costs.
Unfortunately, benefit-cost ratios are often <a href="https://theconversation.com/how-do-we-restore-the-publics-faith-in-transport-planning-73684" target="_blank">misused to suit political motives</a>. They are inherently flawed and uncertain for at least three reasons:
<ol>
<li>modelling often <a href="https://theconversation.com/why-fewer-drivers-are-likely-to-use-westconnex-than-predicted-38286" target="_blank">miscalculates future traffic volumes</a>
</li>
<li>
<a href="https://theconversation.com/modelling-for-major-road-projects-is-at-odds-with-driver-behaviour-63603" target="_blank">inaccurate assumptions are used</a> to estimate the dollar value of costs and benefits</li>
<li>
<a href="https://theconversation.com/a-closer-look-at-business-cases-raises-questions-about-priority-national-infrastructure-projects-94489" target="_blank">many uncertain costs and benefits are simply ignored</a>.</li>
</ol>
Reducing investment risk through diversification
In the financial sector, uncertainty is simply a risk to be managed. This can be done with diversification, which is achieved by bundling different assets into a portfolio. For example, bundling shares from different industries reduces the risk that these “diverse” investments will all suffer losses at the same time.
Similarly, investing in a variety of transport modes is a form of diversification. This makes our transport systems more resilient to long-term changes in the economy, the climate, technology, energy and so on. For example, a transport system that provides alternatives to car travel is resilient to increases in the price of fuel or the cost of emissions.
Transport diversification reduces investment risk, so we are likely to get a more stable return on our transport investment. But diversification alone does not prevent a traffic accident blocking a motorway, or a power outage shutting down a railway line.
To tackle those problems, we should consider approaches the technology sector has been using to manage component failures for decades. It can provide <a href="https://aws.amazon.com/about-aws/whats-new/2019/01/amazon-ecr-announces-99-9--service-level-agreement/" target="_blank">services with 99.9% availability</a>. That would be quite an achievement for the transport network!
Managing component failure using redundancy
The technology sector uses redundancy to ensure service is maintained even when one part of the system fails. IT managers keep local and cloud backups so data can be retrieved even if the office burns to the ground. Aircraft designers install multiple flight control systems so the failure of a single system does not cause a crash.
In the transport sector, redundancy is achieved when several modes can be used to make the same journey. While the technology sector can offer redundancy through duplicate systems, providing a duplicate train line “just in case” the first one fails is simply too costly. Instead, we rely on the train network to move people when a road crash halts traffic and we rely on the road network to move people when a train line is closed.
Unfortunately, Australian transport networks do not offer enough capacity or alternatives when one mode is crippled. The predictable result is a fragile transport system with unplanned but not entirely unexpected faults causing frequent delays.
Tapping into micro-mobility solutions
A new wave of mobility solutions is on the horizon. Many are described as “micro-mobility”: electric scooters, electric bicycles and automated delivery pods fit this description, as do conventional bicycles.
These devices are perfect for short trips in crowded cities. They are used for individual mobility and micro-freight (such as small packages and takeaway food).
These devices travel faster than pedestrians, so can be <a href="https://theconversation.com/electric-scooters-on-collision-course-with-pedestrians-and-lawmakers-99654" target="_blank">unwanted on footpaths</a>. However, they are slower than motor vehicles, so can be unwanted on roadways. And as people using micro-mobility devices are <a href="https://theconversation.com/three-charts-on-the-rise-in-cycling-injuries-and-deaths-in-australia-116660" target="_blank">not protected from collisions</a>, they are often reluctant to mix with motor vehicle traffic.
The logical place for micro-mobility devices is on a network that is designed for unprotected humans to travel at around 10-30km/h. In other words, the bicycle network.
The benefits of a bicycle (or “micro-mobility”) network
The <a href="https://theconversation.com/cutting-cycling-funding-is-economic-non-sense-7547" target="_blank">evidence for investment in bicycle infrastructure is strong</a>. It has the benefits of tackling big challenges including obesity, emissions and traffic congestion.
This article highlights three additional benefits that are not included in traditional benefit-cost ratio analysis:
<ol>
<li>providing a bicycle network increases transport diversification and therefore minimises investment risk</li>
<li>a bicycle network provides redundancy to keep the transport system functioning when other networks fail</li>
<li>bicycle networks support the emerging micro-mobility market.</li>
</ol>
However, investment in bicycle networks in Australia has been miniscule for decades. For example, in 2015-16, <a href="https://www.bitre.gov.au/publications/2018/files/infrastructure-statistics-yearbook-2018-booklet.pdf" target="_blank">A$25.1 billion was invested in roads</a> and <a href="https://www.bitre.gov.au/publications/2018/yearbook_2018.aspx" target="_blank">A$8.7 billion in rail</a>. But only <a href="http://www.bicyclecouncil.com.au/publication/national-cycling-strategy-implementation-report-2016" target="_blank">A$121.8 million was spent on the bicycle network</a> – just 0.36% of transport infrastructure spending, or A$5.27 per capita.
The bicycle networks in Australian cities are therefore fragmented and incomplete, as seen below in the map of Sydney.
<a href="https://images.theconversation.com/files/296141/original/file-20191009-3910-qqlfms.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/296141/original/file-20191009-3910-qqlfms.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Sydney bicycle network. <a href="https://opendata.transport.nsw.gov.au/dataset/cycleway-data" target="_blank">Author using Transport for NSW data</a>, <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a>
Without a functioning bicycle network, the overall transport system is susceptible to investment risk and network failure. We will also be left behind as micro-mobility options proliferate and our transport system becomes less and less fit for purpose.
So let’s build a comprehensive bicycle network fit for scooters, delivery pods, bicycles and more, and let’s do it quick smart.<img src="https://counter.theconversation.com/content/124895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Tony Arnold, PhD Candidate, University of Sydney.
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/to-bolster-our-fragile-road-and-rail-system-we-need-to-add-a-micro-mobility-network-124895" target="_blank">original article</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

To bolster our fragile road and rail system we need to add a ‘micro-mobility’ network

<html><body>
<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Watch any tourism or branding campaign for an Australian city, and chances are you’ll see plenty of appealing imagery of amenities in and around the CBD – be it restaurants, nightclubs, parks or galleries.
It is a common mantra in urban planning that good “amenity” is valuable to the economy both in its own right, particularly to attract tourism, and for attracting a productive workforce that boosts the economy more generally.
But in a recent research project, we found that hospitality businesses – including restaurants, bars and hotels – are facing some headwinds in our CBDs. These stem from what economists call a thin labour market. This roughly boils down to businesses struggling to find good workers.
In a series of interviews in Sydney, we found instances of employers experiencing problems with recruitment, reliability and retention of lower-paid workers in particular. These all have the potential to undermine the viability of the CBD hospitality sector.
<h2>Why hospitality is vulnerable</h2>
From our analysis of census data, the CBD hospitality sector is typically the biggest employer of lower-paid CBD workers – it represents around one-in-five such workers. And it is the CBD sector most dependent on lower-paid workers. Around two-thirds of hospitality workers in the CBD are in the lower pay range.
Census and housing market analysis revealed these lower-paid workers are making a lot more housing compromises to work in the CBD, compared with lower-paid workers elsewhere in the broader metro area. This includes: being more likely to rent; more likely to share with unrelated adults; more likely to forgo extra space (spare rooms or backyards); and more likely to face a longer commute. All else being equal, these compromises are going to discourage the lower-paid workers from working in the CBD.
Interviews suggested other CBD industries don’t seem to be as affected. This is partly because many of the lower-paid workers in those industries are in entry-level positions. They are making these compromises for future career and income prospects.
Most industries that employ large numbers of lower-paid workers – like retail or manufacturing – also tend to be more distributed across the metro area, closer to where workers live. This doesn’t help CBD hospitality, though. It’s tethered to the galleries and convention centres in the CBD that attract the visitors.
To be sure, these problems were not a universal experience among hospitality businesses. There were often other mitigating factors, which ensured they could attract good workers.
CBDs are usually the hub for public transport systems, which helps overcome much of the additional distance people travel. And, somewhat ironically, many lower-paid workers like working in the CBD because it offers such good amenities and lifestyle.
In some instances, hospitality jobs also seemed to be a good fit with available sources of lower-paid workers. Seasonal jobs and evening jobs attracted international workers and university students, who brought skills and experience that hospitality jobs might not usually attract.
<h2>Heed the warning signs</h2>
The sky is not falling in. However, businesses and industry groups we spoke with were increasingly aware of the challenging housing circumstances many of their workers faced.
It’s important to recognise that high housing costs aren’t just making life difficult for lower-income households, but can have broader economic impacts too. There is also a concern that this represents a thin end of the wedge – as housing affordability around the CBD deteriorates further, there’s every possibility it will leave other CBD industries seeing their lower-income labour market thinning out.
We also found governments are not well positioned to respond to this issue, which crosses a number of policy “silos”. So housing agencies hope planning agencies will distribute jobs to where the workers live; planning agencies hope transport agencies will connect distant labour markets to the CBD jobs; and transport agencies hope housing agencies will deliver more housing where the jobs are.
In the meantime, our market-led housing strategies leave lower-paid workers struggling with longer commutes and poorer living circumstances, and CBD businesses at risk of thinning labour markets.
 
Ryan Van den Nouwelant is senior research officer - City Futures Research Centre, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/ryan-van-den-nouwelant-199969" target="_blank">here</a>.
Laura Crommelin is research associate, City Futures Research Centre, UNSW Australia, and can be contacted <a href="https://theconversation.com/profiles/laura-crommelin-15376" target="_blank">here</a>.
Both are authors for The Conversation.
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