BONDI JUNCTION STRATEGIC PLAN ~ ECONOMIC OVERVIEW

Prepared For:

WAVERLEY COUNCIL

Prepared By:

LEYSHON CONSULTING PTY LTD
SUITE 908 LEVEL 9 37 BLIGH STREET SYDNEY NSW 2000 TELEPHONE (02) 9221 0111 FACSIMILE (02) 9221 7713
REP 0321 JANUARY 2004
© Leyshon Consulting Pty Ltd 2004

. . . . . . . . . . . . . . . . . . 10 3. . .2 4. . . . . . . . . . . . . . . . . . . . . . . . 6 2. . . . . .2 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 1988 Review . . . . .Leyshon Consulting TABLE of CONTENTS Page EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . 23 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Retail Development . . . . . . . . . . . . . . . . 11 Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 1997 Urban Design Study . . . . . 3 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 REVIEW of PAST STUDIES . . . . . . . . . . . . . . . . . . . . . . . . . 25 Introduction . . . . .2 1990 Future Directions Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 5 EMPLOYMENT TRENDS . .3 Dwelling Stock . . . . . . . . . . . . . . . . . . . . 8 3 RESIDENTIAL DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Total Job Growth . . . . 1 1. . 23 Job Growth by Industry Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 3. . . . .2 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Metropolitan Trends . . . . . . . 5 2. . . . . . . . . . . . . . . . . . . . 17 4. . . . . . 10 Dwelling Tenure . . . . . . . . . . 1 Report Objectives . . . .5 JHD Economic Impact Assessment 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 5. . . . . . . . . . . . 3 2. . . . . .1 4. . .2 2 Background . . . . . . . . . . . . . . . . . . . . . . . . 4 2. . . . . . . . . . . . . . . . . . . . . . . i-iv 1 INTRODUCTION . . . . . . . . . 27 6. . . . . . . . 29 4 COMMERCIAL DEVELOPMENT . . . . . . . . . . . . . .3 Bondi Junction Strategic Plan ~ Economic Overview January 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . .1 1. . . . . . . 12 Overview . . . . . . . . . . . . . . . . . . . . .4 1999 Bondi Junction Town Centre Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Comparison with Other Centres . . . .3 6 POLICY DIRECTION . . . . . . . . . . . . . . . . . . . . . . . . . .1 3. . . . . . . . . . . . . . . . . . . . . . . . 18 Outlook . . . 27 Commercial Development . . . . . .

Leyshon Consulting LIST of TABLES 3. 2001 5. 1996 and 2001 SUMMARY of DEMOGRAPHIC ATTRIBUTES of BONDI JUNCTION. CHATSWOOD and BONDI JUNCTION. 1996-2001 DWELLING TENURE – BONDI JUNCTION. 1991-2001 COMMERCIAL SERVICES SECTOR EMPLOYMENT – ST LEONARDS.1 : NET EFFECTIVE SYDNEY CBD RENTS. WAVERLEY and WOOLLAHRA SLAs POPULATIONS.1 3. 1988-2001 Bondi Junction Strategic Plan ~ Economic Overview January 2004 .2 3.2 : LIST of FIGURES 4. 2001 (% Population) CHANGE in EMPLOYMENT by INDUSTRY GROUPING in BONDI JUNCTION.1 : 5.3 : : : CHANGE in DWELLING STOCK – BONDI JUNCTION.

In April 2002. The findings of this study have proved reasonably accurate based on 2001 employment data. Residential Development Section 3 The net change in dwelling stock in Bondi Junction between 1996-2001 was +182 dwellings.m. office-based) employment in Bondi Junction could be in the range of 5. The significant increase in apartments (+414) was offset by the decline in the number of semi-detached/row/terrace/townhouse dwellings.000 sq. the demand for office space in non-CBD centres was being adversely affected by rising office vacancy rates in the Sydney CBD and by declining office work space ratios.600 to 6. The EIA assessed the impact of the Composite Scheme at -14. Review of Past Studies Section 2 A review study conducted in 1988 concluded that an additional 15. Bondi Junction Strategic Plan ~ Economic Overview January 2004 EXECUTIVE SUMMARY Page i . If the ‘not stated’ dwelling category is factored in. The Report presents the results of an analysis of certain economic planning issues associated with the development of a new strategic plan for Bondi Junction. In 1999 the Bondi Junction Town Centre Study identified that the centre lacked a western anchor. of commercial floorspace may be required in the Bondi Junction centre by 1996 and up to 40. either retail or commercial. The 1999 study also noted that between 1989 and 1994 office rents in Bondi Junction (as well as in other Sydney suburban centres) had declined significantly. which would counter-balance the Westfield centre.Leyshon Consulting EXECUTIVE SUMMARY Introduction Section 1 This Report has been prepared by Leyshon Consulting Pty Ltd for Waverley Council (Council). the latter fell sharply following the recession of the early 1990s.000 to 20.6% with respect to the balance of retailing in the Bondi Junction town centre. The study forecast that by 2001 ‘white-collar’ (that is. by 2001. JHD Advisors prepared an Economic Impact Assessment (EIA) of the so-called Bondi Junction Composite Scheme—the name given to the proposed expansion of the Westfield and Carousel centres and construction of additional retail floorspace in Bronte Road.m. In essence. it is likely that the increase in apartments between 1996-2001 was in excess of 600 units.300 workers.000 sq.3% in 2004 for Eastgate and -10.

One of the only major issues which Council has the power to address is whether current planning controls in Bondi Junction provide (in a defacto sense) undue incentives for the construction of residential.m. about 18. however.Leyshon Consulting EXECUTIVE SUMMARY Cont’d Residential Development Cont’d Compared with both Waverley SLA and the Sydney Region. of ‘competitive’ modern office space. commercial. have new office space projects been once again considered feasible. the Bondi Junction population is of substantially lower socio-economic status. At present only limited commercial vacancies exist within the Bondi Junction centre. Council should consider identifying the remaining prime commercial sites in the Bondi Junction centre and reevaluate the planning controls which relate to those sites so as to give preference to commercial rather than residential development. Bondi Junction Strategic Plan ~ Economic Overview January 2004 EXECUTIVE SUMMARY Page ii .m. as opposed to.600 sq. floorspace. Recent high-rise residential development in Bondi Junction is further contributing to the gentrification of the centre’s residential population base. Bondi Junction residents have an above-average socio-economic profile. Residential development is also significantly boosting the retail base of the centre. Only since rising CBD rents became evident in 1999. In comparison with Woollahra SLA. Very little office construction activity has occurred in Sydney’s suburban centres since the mid-1990s apart from the recent commencement of projects in Parramatta The development of new office space projects is largely a matter falling within the province of the private sector.600 sq. Property agents active in the Bondi Junction market have commented that the centre has a shortage of premium quality floorspace available for rent. Commercial Development Section 4 A survey of suburban centres in the Sydney Region undertaken by Colliers International in 1989 found that Bondi Junction at that time contained an estimated 78. Since 1989. of new office space has been added to the Bondi Junction centre.

This growth overwhelmingly occurred in the early 1990s. Between 1991-2001 Chatswood achieved jobs growth of +5.561 persons were employed in the Bondi Junction centre in 2001. It is recommended that the future development of a town square be explicitly recognised in any new strategic plan developed for Bondi Junction and that this initiative be strongly supported by Council. Chatswood is a much larger employment centre containing around 23.322 and St Leonards +555. While both centres have a larger employment base than does Bondi Junction all three enjoy reasonable proximity to the CBD. It is recommended that high priority should continue to be given to the development of a town square linking Oxford and Spring Streets. In the decade 1991-2001 total employment growth in Bondi Junction was in the order +1. The performance of Bondi Junction in attracting office-based employment has been compared with that of St Leonards and Chatswood—the two most relevant centres. however.Leyshon Consulting EXECUTIVE SUMMARY Cont’d Employment Trends Section 5 According to data compiled by the Transport Data Centre from the most recent Census. i i i Bondi Junction Strategic Plan ~ Economic Overview January 2004 EXECUTIVE SUMMARY Page iii .170 jobs or slightly more than twice the number of jobs found in Bondi Junction in 2001. Policy Direction Retail Development i Section 6 The key conclusions arising from this study are set out below. an estimated 10.458 jobs. It is recommended that that part of Oxford Street to the west of Newland Street should be the primary focus of attempts to attract new retailers to the Bondi Junction centre. It is recommended that the redevelopment of retail precincts in Oxford Street and in areas to the west of Newland Street should aim to provide a different retail experience to the internalised mall environment of the Westfield Bondi Junction centre. This compares to +345 new jobs generated in Bondi Junction during the decade.

on the rail system et cetera) but also expound the centre’s advantages in terms of its significantly upgraded retail services. Such a campaign should not only emphasise the ‘natural’ advantages of Bondi Junction as an employment centre (proximity to the CBD. i i i i eeeee Bondi Junction Strategic Plan ~ Economic Overview January 2004 EXECUTIVE SUMMARY Page iv . Commercial Development i It is recommended that Council give consideration to a adopting a strategy specifically designed to protect future opportunities for commercial development in Bondi Junction as well as providing some incentives to encourage commercial development and redevelopment in the centre. In relation to the former objective. it is recommended that Council should identify those sites within the Bondi Junction centre with high potential value for office development and take action to ensure they are not ‘lost’ to residential projects. It is recommended that consideration also be given to the flexible use of car parking requirements as they apply to commercial buildings. It is recommended that Council consider implementing a review of the floorspace ratios which apply to commercial and residential development in the centre generally to ensure a sufficient disparity exists in favour of the former.Leyshon Consulting EXECUTIVE SUMMARY Cont’d Policy Direction Cont’d i It is recommended that Council formulate a program designed to improve the public domain in selected areas of the Bondi Junction centre outside of the Oxford Street Mall with the improvement of Oxford Street to the west of Newland Street being given priority over other areas. It is recommended that a marketing campaign promoting the merits of Bondi Junction as a commercial centre should be established.