Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
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www.pwc.com.au
October 2016
Parramatta 2021
Unlocking the potential
of a new economy
2 | PwC
Contents
Introduction 4
Highlights 6
Executive summary 8
Parramatta in 2016 12
Parramatta in the future 16
Appendix A: The economic contribution of Hospitals and
Universities in Sydney 30
Appendix B: International examples of
‘second city’ development 32
Appendix C: Economic impact method 40
Appendix D: References 42
Glossary 43
Disclaimer
This Report has been prepared by PricewaterhouseCoopers Consulting (Australia) Pty Limited (PwC
Consulting) in our capacity as advisors to the City of Parramatta Council in accordance with our
engagement letter dated 15 July 2016.
The information, statements, statistics, material and commentary (together the “Information”) used in this
Report have been prepared by PwC Consulting from publicly available material, from information provided
by the City of Parramatta Council and from discussions held with a range of community stakeholders.
PwC Consulting has relied upon the accuracy, currency and completeness of the Information provided
to it by the City of Parramatta Council and the community stakeholders and takes no responsibility for
the accuracy, currency, reliability or correctness of the Information and acknowledges that changes
in circumstances after the time of publication may impact on the accuracy of the Information. The
Information may change without notice and PwC Consulting is not in any way liable for the accuracy of any
information used or relied upon by a third party.
PwC Consulting has provided this advice solely for the benefit of the City of Parramatta Council and
disclaims all liability and responsibility (including arising from its negligence) to any other parties for any
loss, damage, cost or expense incurred or arising out of any person using or relying upon the Information.
Parramatta 2021 | 3
Introduction
Lucy
Turnbull AO
Chief Commissioner
of the Greater Sydney
Commission
The Greater Parramatta area
which is now covered by
City of Parramatta Council
represents one of the most
exciting and dynamic parts
of Sydney with a broad range
of natural and manmade
assets and a rich history
and heritage.
Currently home to over 230,000
people, over the next 5 years
another 41,000 people will call
Parramatta home. This growth in
population will be matched by very
significant projected increases in
jobs and economic productivity.
The Greater Sydney Commission
looks forward to continuing to
work with City of Parramatta
Council in making sure the massive
public and private investment in
this area (more than $10 billion
over the next five years) is best
leveraged to create a liveable,
sustainable and productive city
at the very heart of the Greater
Sydney Region.
4 | PwC
Forty-one thousand more people
will call Parramatta home in
the next five years. Longer term,
Greg Dyer Parramatta will double in size in
Interim General the next 20 years and Western
Manager, Sydney will be home to more than
City of Parramatta
half of all Sydneysiders within
10 years.
As we look towards the
next five years and beyond, A massive pipeline of
Parramatta is rapidly infrastructure, including a light
transforming to become the rail network, a redeveloped
engine room of Australia’s stadium for Parramatta and the
new Museum of Applied Arts and
most significant economic
Science (Powerhouse Museum),
growth region; a vibrant will unlock and accelerate
home of diverse communities economic growth across the city,
and a centre of excellence as well as provide great new
in research, education opportunities for work and play in
and enterprise. the heartland of Global Sydney.
We are well on the way to Parramatta has already attracted
achieving all that as a new a long list of organisations and
Parramatta is already emerging government departments which
thanks to considerable private are moving their headquarters,
and public investment across our and thousands of jobs, to our CBD.
growing city.
Within five years, it’s forecast that
That investment in our future – an additional $1.2 million will be
in jobs and industry, transport spent by workers, residents and
and cultural infrastructure and visitors on retail each and every
commercial and residential day in Parramatta.
development – will reap enormous
It is indeed an exciting time for our
rewards for our local economy and
community as well as for anyone
the people of our community.
looking to Parramatta as a place
The indicators which are outlined of opportunity and investment –
within this report provide a a great place to live, work, play or
compelling picture of the size of to build a business on the strength
the opportunity which is emerging of a rapidly growing economy.
in Parramatta.
By 2021, it is expected that
Parramatta’s economic growth rate
will nearly double from 2.4 per
cent to 4.6 per cent. This will mean
22,000 additional jobs and a CBD
one third bigger than it is today.
Parramatta 2021 | 5
Highlights
Population growth
In the next five years, Parramatta’s population will grow by 41,000 residents at
almost twice the pace of Australia. This is the equivalent of 2 busloads of new
residents per week.
The accessible heart of Sydney Employment growth
The Parramatta LGA is accessible to 2.3 million By 2021, an estimated 22,000 additional people
people within 45 minutes by either car and/or will be working in Parramatta, totalling
public transport. This means half of Sydney can 186,000 (14 per cent growth).
access Parramatta with ease.
Parramatta’s investment boom
Over the next five years, more than $10 billion will be invested in constructing roads,
light rail, schools, hospitals, universities, offices, shops, accommodation, a museum, a
sports stadium, and new public spaces.
6 | PwC
Economic growth Office space
Parramatta’s economic growth is anticipated to Parramatta’s commercial floor space is
almost double from 2.4 per cent per annum to estimated to expand by 232,000 m2 or
4.6 per cent per annum over the next five years 34 per cent by 2021 (if all of Parramatta
due to infrastructure investments and future Square is built in addition to the known
developments, growing to be a $30 billion pre-committed leases). This is equivalent to
economy (in Gross Regional Product), with adding most of Chatswood’s office stock.
$66 billion in turnover.
Growth driven by the finance, health and government sectors
In Parramatta, the health, government and financial service industries will generate 72 per cent of
all employment growth (16,000 jobs), 60 per cent of all output growth ($3.5 billion) and 68 per cent
of the new economic returns ($2.1 billion).
Retail rebirth Primed for take-off
The anticipated growth, both in terms of Parramatta’s economy is primed for the new
population and commercial development, one million annual visitors expected at the
will see an additional $3 billion in retail new Museum of Applied Arts and Sciences
turnover in the city centre over the next in 2022, and the 2025 commissioning of
5 years. In 2021, this is equivalent to an Western Sydney Airport.
additional $1.2 million per day.
Parramatta 2021 | 7
Executive summary
Western Sydney is Australia’s for Parramatta, to be delivered
fifth largest region in terms over the next five years, including:
of contribution to gross • public investment spread across:
domestic product (GDP), and –– $4.7 billion of economic
houses more than 10 per cent infrastructure – this includes,
of Australia’s population, for example, WestConnex
making it one of the nation’s and the Parramatta Light Rail
leading regions. connecting the Parramatta
CBD to Homebush
The City of Parramatta Council
–– $2.7 billion of social
area is at the core of this economic
infrastructure – this includes,
and social activity.
for example, investments in
The new local government the Westmead precinct, the
boundaries paint a picture of a ‘vertical school’, the Museum
larger and more vibrant City of of Applied Arts and Science
Parramatta. Compared to the old (i.e. the new Powerhouse
Parramatta local government area Museum) and the Western
(LGA), the new boundary: Sydney Stadium
• encompasses an area that is 36 • private investment in
per cent larger commercial and residential
• includes a population of 230,000 buildings – this includes
that is 18 per cent larger $3.4 billion of investment
consisting of an additional
• has 24 per cent more employed 7,400 residences and
people (157,000 vs 100,000) an extra 232,000 m2 in
• has an economy with a total commercial floorspace.
gross regional product that is The significant investment in both
62 per cent larger ($23 billion economic and social infrastructure
vs $14 billion) over the next five years will result in
Clearly, Parramatta is already a two primary impacts.
significant economic power in First, we see an expansion in the
its own right. Parramatta economy. Parramatta’s
What is remarkable is that the next economic growth (i.e. gross
five years will be a springboard regional product – GRP) is forecast
for an evolved and even more to average 4.6 per cent annually
significant Parramatta economy. over the five year period (compound
annual growth rate). This is an
A fundamental driver of this almost doubling of the underlying
transformation is the significant growth rate based on historic
infrastructure investment planned growth of 2.4 per cent and above
8 | PwC
Parramatta 2021 | 9
the forecast state-wide average Figure 1: Baseline and investment-generated growth in GRP
2.9 per cent over the period
31
2016-18.
Growth in Gross Regional Product ($ billions)
Second, we see a shift in the 30
makeup of the Parramatta
29
economy. We project growth to be
most concentrated in the financial 28
and insurance services sector
27
($2.2 billion additional output
in 2021). On an output basis, the 26
financial and insurance services
sector (at $12 billion) remains 25
the second largest sector in the
24
Parramatta economy, with retail 2016 2017 2018 2019 2020 2021
and wholesale trade maintaining Baseline economic growth Additional economic growth
the top spot at $15 billion.
Combined, the health care and social
assistance, public administration Figure 2: Investment-generated impact on Parramatta’s economic output
and safety and financial and in 2021
insurance services industries
will generate 72 per cent of all Financial and Insurance Services
employment growth (16,000 jobs), Public administration and safety
60 per cent of all output growth
Information media and telecommunications
($3.5 billion) and 68 per cent of the
new economic returns ($2.1 billion) Health care and social assistance
above baseline in 2021. Transport, postal and warehousing
Over the next five years the Retail and wholesale trade
continued development of Professional, scientific and technical services
Parramatta will be underpinned by:
Manufacturing
• Parramatta’s centrality as a
Accommodation and food services
place to work:
Arts and Recreation Services
–– Of Sydney’s workforce,
1,306,000 people already 0 500 1,000 1,500 2,000 2,500
Change in output ($ millions)
live within 45 minutes
travel of Parramatta by
car or 1,038,000 by public
Figure 3: Largest sectors in Parramatta by output in 2021
transport. Meanwhile 48 per
cent of Sydney’s population
Retail and wholesale trade
lives within 45 minutes of
Parramatta. The significant Financial and Insurance Services
residential developments Manufacturing
planned for the region
Public administration and safety
will see these figures grow
Electricity, gas, water and
dramatically. waste services
–– Better connectivity for Construction
businesses will be provided by Health care and social assistance
light rail and WestConnex. Professional, scientific and
technical services
• Parramatta’s evolution into a Transport, postal and warehousing
commercial and residential hub Information media
is creating a CBD that will be and telecommunications
activated day and night through 0 5 10 15 20
new residents and workers Economic output ($ billions)
who will increase demand for Baseline output Additional output
shops, cafes, restaurants, bars
and entertainment.
10 | PwC• The catalytic involvement of
universities, underpinned by
Western Sydney University,
and the combination health
and university facilities at
Westmead.
“Despite the fact that all our cities represent business
Beyond the timeframe of this centers, engines of … regional economies, the
study, we can expect to see strongest relationships with overall success appear
even more profound shifts as in areas like quality of living, senior wellbeing,
the transformational effects
housing, and disaster preparedness. Put differently,
of domestic and international
connectivity provided by access effectively dealing with human needs, both everyday
to the Western Sydney Airport and extraordinary ones, remains the essence of
becomes available. Additionally, city success.”
when the Museum of Applied Arts PwC 2016, Cities of Opportunity, p.1
and Science comes on line in 2022
we can expect to see more than
one million visitors coming to
Parramatta each year.
Analysis of similar overseas city
environments demonstrates that
‘second cities/CBDs’ can thrive
when their growth is supported
by a balanced set of strategic
infrastructure investments. For
example, as the recent PwC Cities
of Opportunity study of global
cities reinforces that a city requires
balanced social and economic
strengths to work as a whole.
The array of major projects
being developed by the City
of Parramatta Council, NSW
Government and the private
sector are providing a balanced
investment and growth
perspective, addressing:
• connectivity shortcomings
• the personalisation of some
existing spaces that have a lack
of active use
• the need for major
cultural institutions
• orientation of the economy to
higher value industries
• residential capacity in close
proximity to employment zones.
This means that in the near future
the City of Parramatta will be a
greater place to live, work and play.
Business and investors should put
Parramatta at the centre of their
future plans just like Parramatta
is at the heart of Sydney in so
many ways.
Parramatta 2021 | 11This section describes the scale and scope of the economy within the newly redefined City of Parramatta Council local government boundaries. Parramatta in 2016 The City of Parramatta area contains a $23 billion economy The City of Parramatta is one of Figure 4: Old and new Parramatta LGA boundaries Australia’s leading regions, with population growing at twice the pace of the broader Australian economy. This is especially evident in the new local government boundaries, which expands the reach of the City of Parramatta to a wider population. The new local government boundaries paint a picture of a larger and more vibrant City of Parramatta Council area. Compared to the old Parramatta local government area (LGA), the new boundary: • encompasses an area that is 36 per cent larger • includes a population of 230,000 that is 18 per cent larger • has 24 per cent more employed people (157,000 vs 100,000) • has an economy with a total gross regional product that is 62 per cent larger ($23 billion vs Source: PwC’s Geospatial Economic Model, 2015 data from Australian Bureau of Statistics and $14 billion) City of Parramatta Council • financial and insurance services is now the second fastest growing industry in the LGA (the electricity, gas, water and waste services industry is the fastest) whereas growth industries in the previous LGA were all government related. Clearly, Parramatta is already a significant economic power in its own right. 12 | PwC
Parramatta is the commercial, civic, SWCHQ
cultural and educational centre of
Western Sydney
Business and commercial diversity of the city means it hosts
a number of multi-cultural events
As the geographical, commercial thoughout the year including
and cultural capital of Western Parramasala, Loy Krathong and
Sydney, Parramatta is the Lunar New Year.
second largest CBD in Sydney
and the sixth largest in the Other cultural attractions in
country. With a $23 billion Parramatta include:
NSWPFHQ
economy, the Parramatta LGA is • ANZ Stadium
a major provider of business and
• Pirtek Stadium
government services. Parramatta
also serves as the civic and • The Riverside Theatres
administration centre of Greater
Western Sydney, acting as host Education, health
to the; and research
• NSW Police Force With over nine university
Headquarters (NSWPFHQ) campuses, colleges and graduate
• Sydney Water Corporation schools, including campuses from
Headquarters (SWCHQ) the Western Sydney University
(relocated from Sydney’s (WSU), the University of Sydney, WSU campus
CBD in 2009) the University of New England,
Charles Sturt University and
• New South Wales Department Sydney Graduate School of
of Attorney General and Management, Parramatta has
Justice Headquarters a strong culture of education,
• Parramatta Justice Precinct, research and development,
which contains the Children’s particularly in the East and
Court of New South Wales and North West.
the Sydney West Trial Courts.
Parramatta is also host to
Natural assets Australia’s largest concentration
of health, education and research
The City of Parramatta contains a facilities at Westmead with four ANZ stadium
number of natural assets including; hospitals, two universities, two
• the riverbank on which the CBD large research institutes and many
sits and which links Parramatta allied health centres.
to Sydney via a ferry service.
• Parramatta Park, which acts as
an important cultural hub for
the region encouraging family
and friends to get together
through events hosted at the
park, attracting over 2.3 million
visits each year.
Parramatta River
Culture and major
infrastructure
Parramatta has a diverse cultural
mix, with approximately 18,300
residents migrating to Parramatta
from other countries between
2006 to 2011. The cultural
Parramatta 2021 | 13Parramatta has a large and growing
financial and insurance services sector
employing 19,000 people
The Parramatta LGA employs over Figure 5: Employment by industry in 2015
157,000 people. Health care and
social assistance is the dominant Health Care and Social Assistance
industry for employment, with Public Administration and Safety
almost 25,000 people working in
Financial and Insurance Services
the industry. This is primarily driven
by the Westmead health precinct Manufacturing
which houses Australia’s largest Education and Training
concentration of health, education Professional, Scientific and
and research facilities. Technical Services
Retail Trade
Public administration and safety
Wholesale Trade
is also a significant employer in
Parramatta as various NSW State Construction
Government agencies have offices Transport, Postal and Warehousing
based in the city. More than 20,000 Accommodation and Food Services
people work in this industry.
Electricity, Gas, Water and Waste Services
The newly expanded boundaries Other Services
of Parramatta’s LGA which now
Administrative and Support Services
includes Homebush, means that the
financial and insurance services Arts and Recreation Services
sector is now the city’s third largest Rental, Hiring and Real Estate Services
employer – about 19,000 people
Mining
work in the finance or insurance
service sector within Parramatta. Agriculture, Forestry and Fishing
0 5 10 15 20 25 30
Over the last 15 years, the fastest Employment ‘000s (persons)
growing sector has been electricity,
gas, water and waste services, Figure 6: Growth in industry gross value added 2001-2015
largely due to the relocation of
Sydney Water’s office to Parramatta Electricity, Gas, Water and
in 2009. The growth of the financial Waste Services
and insurance services industry – Financial and Insurance Services
the second quickest growing sector
Public Administration and Safety
since 2001 – can be attributed
to the expansion of the sector in Health Care and Social Assistance
Homebush. Public administration Ownership of Dwellings
and safety has also been a growth
sector for Parramatta as the Construction
State Government has chosen a Arts and Recreation Services
‘decentralisation’ policy of moving
Education and Training
government agencies westward
to support economic development Transport, Postal and Warehousing
beyond the Sydney CBD. Retail Trade
Relative to the rest of Sydney and Manufacturing
NSW, Parramatta’s economy is Wholesale Trade
more focussed in financial and
insurance services (19 per cent of Accommodation and Food Services
Parramatta’s value added in 2015 is Professional, Scientific and
Technical Services
from this sector versus 17 per cent
Mining
for the rest of Sydney and 6 per cent
Rental, Hiring and
for NSW excluding Sydney). While Real Estate Services
it is not likely to directly rival the Other Services
Sydney CBD, Parramatta does have
a comparative clout in the financial Administrative and Support Services
and insurance services sector. Other Information Media and
Telecommunications
sectors where Parramatta has a
-100% 0% 100% 200% 300%
relative strength are manufacturing,
Change in Gross Value Added (2001 – 2015)
health care and social assistance and
public administration and safety.
Source: PwC analysis
14 | PwC2.3 million people can access the
Parramatta LGA within 45 minutes
One of the key attractions of Figure 7: People within 45 minutes by car
Parramatta is its centrality in
Sydney. With the geographic
heart of Sydney moving west,
Parramatta becomes an easily
reached location for both workers
and shoppers. PwC’s Geospatial
Economic Model analysis shows
there are 1,306,000 people in
the workforce (aged 15 or over)
within 45 minutes travel of
Parramatta by car or 1,038,000
by public transport.
When we consider the whole
population within 45 minutes
of Paramatta given travel mode
choice (i.e. considering the rates
of people who choose to travel by
car over public transport and vice
versa) we estimate a catchment of
2.3 million people.
This means about half of Sydney’s
population (4,921,000 in 2015)
can easily access Parramatta’s
offices, hospitals, universities,
shopping centres and cultural and
Note: Car journey times are estimated based on traffic conditions on Monday 7 November at 8am.
entertainment attraction.
This has facilitated the jobs Figure 8: People within 45 minutes by public transport
growth generated by Parramatta’s
residential and commercial
developments, as well as social and
economic infrastructure to date
and this will accelerate over the
next five years.
Parramatta 2021 | 15This section describes the possible scale and scope of change in the City
of Parramatta economy over the period through to 2021.
Parramatta in
the future
Developments in Parramatta over the
next five years
Over the next five years, Figure 9: Key infrastructure developments in the Parramatta LGA
Parramatta is undergoing several
large investments that will
further accelerate the growth
of the economy.
At the core of this transformation are
the following committed projects:
• public investment spread across:
–– $4.7 billion of economic
infrastructure – this 6
includes WestConnex and
the Parramatta Light Rail 4
connecting the Parramatta 2 5
1 3
CBD to Homebush 9 8
7
–– $2.7 billion of social 10
infrastructure – this includes
investments in the Westmead
precinct, the Museum of
Applied Arts and Sciences
(i.e. the new Powerhouse
Museum), Western Sydney
Stadium, Riverbank Precinct
renewal, Civic Link masterplan
and the ‘vertical school’.
• private investment in commercial
and residential buildings – this 1. Westmead Redevelopment 6. Parramatta Light Rail
includes $3.4 billion of investment 2. Parramatta Square 7. Museum of Applied Arts and Sciences (MAAS)
consisting of an additional 7,400 3. Riverbank precinct 8. Residential and commercial developments
residences and an extra 232,000 4. Western Sydney stadium 9. Parramatta vertical school
in commercial floorspace. 5. Civic link masterplan 10. Westconnex
Figure 9 identifies the key
developments to be built over the
next five years.
16 | PwCOver $10 billion in public and private
sector investment by 2021
Figure 10: Timeline of expected completion of developments
14. Riverbank Precinct Renewal
and City River Foreshore upgrade
2036
15. Museum of Applied
Arts & Sciences
20. Westmead
9. Westmead Redevelopment*
Innovation Centre
10. Westmead 19. Parramatta
Hospital and the North Urban
3. Office at 105 Children’s Hospital Transformation
Phillips St Stage 1 Program
Today 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Period of analysis
1. Parramatta 4. University 11. Western 16. Parramatta 17. Western
Square 1 of Sydney Sydney University Light Rail Sydney Airport
Educational Westmead campus
2. Mayflower and Research redevelopment 18. Children’s
Retirement Village Facilities (Stage 3) Medical Research
12. Parramatta Institute stages
5. WestConnex Square 3, 4, 5, 6 & 8 3,4 & 5
(stage 1)
13. Residential
6. Western dwellings (7,400)
Sydney Stadium
7. Civic link
masterplan
8. Parramatta
High Rise School
* Note that some elements of the Westmead redevelopment, such as the University of Sydney’s plans for Westmead will be completed
beyond this period but may be completed by 2036.
Parramatta 2021 | 17Diverse public and private infrastructure
development underpins the Parramatta
growth agenda
Parramatta Light Rail Western Sydney Stadium
The proposed Parramatta Light Rail The current 20,000 seat Pirtek
will link Westmead and Carlingford Stadium is the subject of a
to Parramatta, Camellia, Olympic $350 million upgrade into a new,
Park, Homebush and Strathfield. 30,000 seat stadium – known as
At over 20km in length, it will the Western Sydney Stadium.
provide a public transport link Parramatta Leagues Club is
to residential, employment, cultural concurrently investigating the
and education precincts. Services potential to leverage this new
will run at high frequency, seven investment with an upgrade of
days a week and will connect to the club facilities and supporting
the wider rail network, bus, ferry
uses. The stadium is expected to be
and active transport links. The
completed by 2019.
current indicative timescale is for
construction to commence in late Museum of Applied Arts
2018. The light rail is expected to be
and Sciences
completed by 2023.
residential and retail space.
The Museum of Applied Arts
WestConnex (stage 1) Stretching from the welcoming
and Sciences (the Powerhouse
arrival point of Parramatta Quay
WestConnex Stage 1 involves Museum) will be relocated from
to Kings Quarter, it also features
widening the M4 Motorway between Sydney CBD to a new building
the Riverside Theatre and the
Parramatta and Homebush, and on the banks of the Parramatta
new Museum of Applied Arts and
extending the M4 with underground River. Construction is expected
Sciences. Connected via Civic
tunnels from Concord to City West to begin in 2018 and finish by
Link (see below) to the CBD and
Link at Haberfield. Upon completion, 2022, displaying 40 per cent
its transport interchange, the
motorists will be able to travel more exhibits than the current
precinct will be positioned as an
between the Blue Mountains and museum. In addition, the location
all-hours cultural complement
Haberfield without encountering will be incorporated into the
to the Parramatta Square
traffic lights. Stage 1 is scheduled to proposed light rail plans and
be completed by 2019. business district.
will form a centerpiece to the
Riverbank precinct. Civic Link
Western Sydney Airport
Western Sydney Airport, to be Riverbank precinct The Civic Link Framework is a plan
located in Badgerys Creek, has to create a green, pedestrianised
The Riverbank precinct will be an public space and cultural spine
been committed by the Australian architectural landmark and key
Government. Occupying which will connect Parramatta
destination for workers, residents CBD’s primary civic and riverfront
approximately 1,780 hectares, the and visitors alike, binding the
airport will create both direct jobs spaces. It will respond to the
physical element of the river, environmental context and to
at the airport, and indirect jobs together with history, culture,
facilitated by increased accessibility the city’s rich and vibrant history,
and entertainment. The precinct expressing people and place, past,
to the region. The airport is expected
will host major city events, present and future.
to be open by 2025.
such as New Year’s Eve and Loy
Krathong, throughout the year. City River Foreshore
Combining open public space and The City River Foreshore is a
a rejuvenated waterfront location, revitalisation along the river
the precinct will also include corridor that includes a number of
projects, namely a major upgrade to
Parramatta Quay, which involves a
new weir, wharf, public square and
boardwalk cycleway.*
* Note – not included in the economic analysis of construction impacts
18 | PwCArtists impression of the future Parramatta skyline
Westmead redevelopment Parramatta Square LGA (such as the Parramatta North
Urban Transformation Program).
The Westmead redevelopment The $2 billion Parramatta Square For example, the areas of Olympic
includes a range of residential, redevelopment is one of the Park and the Ermington-Melrose
cultural, sporting, transport and largest urban renewal projects Park are noted by .id to be the
education infrastructure upgrades. in the country. It includes the precincts with the largest numbers
This includes, but is not limited construction of at least five major of new dwellings to be added in
to, Parramatta North Urban commercial, residential and civic coming years.
Transformation Program, Westmead buildings which will border a 250
Hospital and the Children’s Hospital metre long public domain and Commercial developments
at Westmead, the University of thoroughfare in the core of the city.
Sydney Westmead Plans, and Commercial developments
This includes the proposed Aspire considered in the next five years
the Western Sydney University
development. It is anticipated that include 3, 4 and 6 Parramatta
Westmead Campus. With the
Parramatta Square will open in Square and 105 Phillip Street. These
renewal complete, the Westmead
stages and be completed by 2021. are developments that are either
redevelopment is believed to add
6,000 new jobs in the area by 2021. already committed, or estimated
Residential dwellings to be highly likely to be committed
High rise high school Compared to historical trends, a in the near future. Based on the
surge in residential developments estimated completions of each of
The State Government has these developments and Parramatta
is expected to occur in the coming
committed to transforming the Square (due to open 2017) this will
years in order to accomodate the
Parramatta Public School and mean Parramatta’s commercial
new residents. An estimated 1,478
Arthur Phillip High School into a floor space will expand by 232,000
extra dwellings will be built on
vertical school. This includes 14 square metres or 34 per cent by
average each year between now and
storeys proposed for the secondary 2021 (an increase of 118,000 square
2021. This will likely be developed
school and five storeys proposed for metres above the baseline net
from the large pipeline of apartment
the primary school, with the layout absorption rates).
developments in the CBD, where
designed to facilitate modern ways
an estimated 10,000 apartments
of learning. The development is
(such as the Aspire tower within
estimated to be completed by 2019.
Parramatta Square) are proposed or
through other projects around the
Parramatta 2021 | 19The look and feel of future Parramatta
The impacts upon visitors, Activated cities demonstrate
retail and hospitality, land better economic performance,
values and development higher desirability for tenants and
residents, higher productivity and
patterns in the CBD
competition; which in turn fuels
What has long been the vision – to economic demand and growth.
firmly re-establish Parramatta
The regeneration of Parramatta
as Sydney’s second CBD – is
will result in improved amenities
rapidly becoming a reality. With
through enhancements to the
unprecedented investment
public domain, activated street
in infrastructure and urban
frontages, laneways, pedestrian
development, the city has the
linkages and riverside promenades.
components to be a vibrant and
The shifts in the Parramatta CBD
activated city. Underpinned by
that have taken place in recent
a rise in residential population,
times demonstrate that the
commercial office development,
Parramatta LGA has the potential
investment in significant transport
to grow in land value at a faster
and cultural infrastructure, such
rate than Sydney CBD.
as the Museum of Applied Arts
and Sciences, Parramatta Square, With added people, jobs and
Parramatta in 2021 will stand to prosperity, retail and hospitality,
be a highly active city in both day Parramatta will continue to thrive
and night. and step up to take its place as
Sydney’s second CBD.
The city is anticipated to grow in
terms of residential inhabitants
and commercial development
within the CBD. With this new
critical mass comes activity.
20 | PwCLikely businesses and It is forecast that Parramatta’s A. An increasingly densely-
industries that may relocate population will grow from populated and activated
or open offices in Parramatta 236,000 in 2016 to 277,000 CBD – At the heart of every great
in 2021. This means about 41,000 city is a thriving urban core.
given the changing economy more residents will be housed in Urban economists have long held
In addition to the economic study, the Parramatta LGA. This growth that cities are offering economic
from a qualitative perspective, rate – 3.3 per cent per annum – is opportunity through productivity,
Parramatta has a significant young about twice that of Australia’s over innovation, interaction and
population, accessible transport the same period – 1.7 per cent. the spread of knowledge in
infrastructure and, in a relative Many of these new residents may dense areas, enabling entry
sense, more affordable commercial live in new dwellings to be built into the global economy. It is
office space. These form the in the areas of Homebush, the
through ‘urban agglomeration’
Parramatta CBD and Ermington.
key elements of an innovation that the great cities of New
based economy. With the population growth, York and London have lead to
alongside infrastructure and their respective positions as
Based on this, with the right
cultural investments, comes economic centres. According
strategic investment and
increased interaction at street to the Brookings Institute, it is
leadership, Parramatta could be level, higher retail and restaurant through density that ‘labour
at the forefront of innovation in patronage. Cultural and market pooling’ is achieved,
Australia. Utilising its younger entertainment venues will provide increasing productivity by up to
population, connectivity and more a diverse offering of after work 6 per cent. High urban density
affordable real estate, to create entertainment. The look and feel of and close proximity to likeminded
new jobs for a new economy. the city will differ by location; five peers creates an environment of
As well as working towards key trends of activities that will collaboration, allowing for ease of
attracting established businesses, develop and affect the look and moving goods, people and ideas.
Parramatta would stand to benefit feel of the city are listed below. Parramatta’s CBD will become
from cultivating and retaining the
increasingly densely populated
future top ASX companies.
with the demand for centrally
located housing stock resulting
in a development pipeline of
about 10,000 apartments in
and around the CBD. Most of
these apartments are high rise
Artists impression of the Northbank
developments and will markedly
Terrace on the Parramatta river change the physical look of the
CBD skyline. With the central
location at the heart of Sydney,
the growth in population and
additional transport, cultural and
social infrastructure, the CBD will
become increasingly attractive to
government and satellite offices
of ASX100 businesses and head
offices for smaller organisations.
The growth in workers in the CBD
will lead to demand for cafes,
restaurants and retail activity.
Parramatta 2021 | 21B. Light rail leads to urban D. University hubs – The array of CBD workforce may lead to more
renewal – The light rail project Parramatta universities will update local employment opportunities
will enable urban renewal at the and develop their campuses. and could therefore help retain
precincts of Homebush, Olympic These educational facilities will graduates within the City
Park, Carter Street, Silverwater then be able to attract more young of Parramatta.
and Camellia. This may change the talent and create employment
E. Homebush: a sporting,
land use in these precincts as more opportunities for lecturers and
commercial and residential
space is dedicated to residential researchers. The colocation of the
precinct – The residential
dwellings where people choose to university institutes at Westmead
developments at Homebush
live close to tram stops. also leads to growth opportunities
(including Olympic Park) are
as PwC analysis shows that this
C. Westmead health cluster – expected to make the area the
tends to generate economic growth
Australia’s largest concentration fastest growing residential area of
4 per cent above what could
of health, education and research the city. This will enable more local
otherwise be expected in a region
facilities will continue to expand. finance and hospitality workers to
with standalone facilities. (see
The updating and expansion of live closer to their work and in time
Appendix A for more details on
the Westmead health facilities activate the Homebush area.
this research).
will attract talent as healthcare
workers strive to work with the The activation of the CBD, the
leading professionals of their improved transport links to WSU
sectors. Westmead’s brand and and Westmead, and the expanding
its existing clout will attract new
health technology enterprises,
allied health services, innovative
new businesses and start-ups,
and potentially link the research,
teaching and health services
with new investors. Meanwhile
the Parramatta North Urban
Transformation will enable more
of these people to live near the
cluster, allowing for an expanding
healthcare centre of excellence.
22 | PwCInternational experience
suggests that ‘second cities’ can
develop with sustained, balanced
investment programs
Analysis of overseas ‘second Figure 11: The population density of New York
cities’ (i.e. areas with a strong and
distinct business district within
a common, broader metropolitan
area, or nearby secondary cities)
demonstrates that there is no
single path to second city success.
However, there are a number of
common elements that can be
seen in Parramatta. For example,
two case studies of second cities
that have undergone similar
regeneration and growth to
Parramatta (refer to Appendix B
for further details of these case
studies) include:
• Aarhus, Denmark – a city
that has achieved economic
growth on the back of new
infrastructure investment
(Rapid Light Rail, New
Source: New York Population Density
University Hospital, Aarhus * http://www.census.gov/quickfacts/table/POP060210/36047,00
Docklands, Godsbanen).
• Both Aarhus and Brooklyn A rich civic life gives rise to
• Brooklyn, New York City – a city
leveraged existing assets cultural identity, cohesion and
that has experienced significant
(physical and intangible) to uniqueness of place. Investment
urban regeneration since 2004,
support growth: Aarhus has in cultural facilities and
leading to the emergence of
sought to leverage the growth public spaces allowed for the
a thriving innovation and
of the knowledge, health and cultivation of a profound civic
cultural fabrics.
service industries to drive identity in Aarhus and Brooklyn.
The common drivers of successful economic growth. Brooklyn, This identity was fundamental
growth include: whilst planning for commercial to attracting financial and
• A balanced investment office, experienced greater human capital.
approach: Investment from than expected residential • Public transport infrastructure
both public and private sectors population growth. The younger and walkability: Aarhus has
in Aarhus and Brooklyn was demographic of Brooklyn sought to utilise the development
balanced across a number of as a result of this additional of a Light Rail network to ease
asset classes. Whilst residential residential development and people flow. High density in
uses dominated throughout the relative affordability has Downtown Brooklyn (14,147
development of each case study, played a significant part in the people per m2) has created an
this growth was underpinned establishment of a globally environment of high walkability
through affordability, proximity, recognised cultural identity. (walk score 96/100).
migration of talent, employment • The importance of culture
generating uses, particularly and place: The foundation of
innovation and tech based a great city is inherently linked
businesses, and the existence of to the culture of its people.
an established urban culture.
Parramatta 2021 | 23The estimated economic impacts
of Parramatta’s invesment phase
We have modelled the impact of Figure 12: Largest sectors by output after investment boom (2021)
the developments and the move
of staff to Parramatta described Retail and wholesale trade 0.43
in the preceding pages. The Financial and Insurance Services 2.17
model methodology is described
Manufacturing 0.32
in Appendix C.
Public administration and safety 0.84
The combined results of these Electricity, gas, water and
investments is twofold over the next waste services
five years to 2021. Construction 0.04
Firstly, we see an overall expansion Health care and social assistance 0.49
Professional, scientific and
in the Parramatta economy. It is technical services
0.37
estimated that in 2021, output Transport, postal and warehousing 0.44
will be $66 billion. This represents Information media and
0.58
an additional $5.8 billion above telecommunications
baseline, demonstrating 10 per cent 0 2 4 6 8 10 12 14 16
growth. The output generated Economic output ($ billions)
through the investments flows onto Baseline output Additional output & value of change
several key industries. In particular,
the financial and insurance
services, public administration
and safety, information media
and communications and health
care and social assistance sectors
account for 2/3rd of the estimated
change in output ($4.1 billion in
2021), through increased tenants
in the area and redevelopments,
as well as through flow-on effects
from increased employment in other
sectors in the LGA.
Other major industries with notable
increases in output include:
• Transport, postal and
warehousing ($440 million) –
attributed to the expansion of the
sector following the productivity
enhancing investment of
WestConnex Stage 1 and the
development of Parramatta
Light Rail.
• Retail and wholesale trade
($430 million) – see case study on
page 28 on this sector.
• Information media and
Output in the financial
telecommunications and insurance services
($330 million) – this industry had
the highest percentage growth sector is forecast to grow
on baseline through to 2021
(86 per cent) and is driven by
by $2.2 billion in 2021.
the expected continuation of the
trend of businesses in this sector
taking up commercial tenancies
in the Parramatta CBD.
24 | PwCParramatta investments will raise the
pace of economic growth
When we look at the equivalent In addition to what is
4.6 per cent
of Gross Domestic Product for the captured here: annual
Parramatta LGA – Gross Regional
Product (GRP) – we can see the
• The opening of the Museum
of Applied Arts and Sciences
growth in the
level of the step change. in 2022 will bring thousands Parramatta
of visitors everyday to the city,
Over the next five years, Parramatta
is estimated to experience which will boost the transport, economy
significant growth as a result of the hospitality and retail sectors. over the next
future investments. Parramatta’s • The commissioning of the
growth is forecast to be 4.6 per cent Western Sydney Airport from five years.
(compound annual growth rate, 2025 onwards will save time
an average of $1 billion annually), and cut transport costs for
almost double that of the baseline businesses which may further
growth rate (2.4 per cent). By add to Parramatta’s existing
2021, the Parramatta economy is geographical advantages and
estimated to grow at $3.1 billion encourage more businesses to
above baseline and will be a make the city as their location
$30 billion economy. The scenario of choice.
and baseline estimates for
• The completion of Stages 2
Parramatta are shown in Figure 13.
and 3 of WestConnex are also
The proposed developments not expected to further advantage
only benefit the Parramatta LGA, Parramatta as businesses will
but also has flow-on benefits to be able to more easily traverse
Sydney and the rest of NSW. the city, avoiding numerous
intersections on the congested
above-ground roads of Inner
West and Inner South Sydney.
Figure 13: Baseline and investment-generated growth in GRP (2016-2021)
31
30
Growth in Gross Regional Product ($ billions)
29
28
27
26
25
24
2016 2017 2018 2019 2020 2021
Baseline economic growth Additional economic growth
Parramatta 2021 | 25The composition of Parramatta’s
economy will change
When we break the overall GRP Figure 14: Estimated impact on Parramatta industry value
impact down by industry value added, 2021
added in 2021 (Figure 14) we see Financial and Insurance Services 1.21
that the financial and insurance Public administration and safety 0.46
services sector expands the
Health care and social assistance 0.44
most – $1.2 billion, followed by
the government sectors of public Manufacturing 0.08
administration and safety and health Retail and wholesale trade 0.06
care and social assistance. Value Electricity, gas, water and
added in these sectors is estimated to waste services
expand by approximately $0.9 billion Construction 0.01
due to the increased investment in Professional, scientific and
0.20
technical services
offices for the public administration
Transport, postal and warehousing 0.20
sector and hospitals at Westmead. In
addition to the expanded capital, the Education and training 0.01
public sector workforce grows and 0 1 2 3 4 5 6 7
adds to the output. Industry value added ($ billions)
Baseline industry value added Additional industry value added & value of change
Other sectors to expand
particularly include:
• Transport, postal and
warehousing – which gains
from investment in Parramatta
Light Rail as well as efficiencies
from WestConnex
• Professional, scientific and
technical services – which gains Financial and
through the expansion in the
workforce and greater office space insurance services
• Information, media and exhibits the largest
telecommunications – which
is estimated to expand due to growth.
increase in commercial space
and office workers moving
to Parramatta.
The output of the arts and recreation
services sector will be greater in
the years following 2021 once
the Museum of Applied Arts and
Sciences relocates from the Sydney
CBD to Parramatta.
26 | PwCA larger workforce
In line with industry value added, on the baseline. This is driven by
jobs growth accelerates as a result the developments in Westmead.
of the proposed developments. The public administration and
Additional In 2021, it is estimated that an safety sector follows next at
additional 22,000 people will be 31,000 employees and exhibits the
22,000 people employed in Parramatta, resulting largest growth with an additional
employed in in a 14 per cent increase in growth
on baseline in 2021. This will
6,800 employees due to the NSW
Government commitment to
Parramatta take total employment to 186,000 decentralise jobs and reinforce
people in 2021 (Figure 15). Parramatta as Sydney’s dual
in 2021. Health care and social assistance
CBD. development, Financial and
insurance services is the third
remains the largest sector for
largest sector in total and in terms
employment in 2021 with 32,000
of additional employees.
employees – up 5,700 employees
Figure 15: Estimated impact on Parramatta employment
200
190
Total employment (000s persons)
180
170
160
150
140
130
120
110
100
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Baseline employment Additional employment
Figure 16: Employment by largest sectors in 2021
Health care and social assistance 5,700
Public administration and safety 6,800
Financial and Insurance Services 3,600
Retail and wholesale trade 1,000
Manufacturing 700
Education and training
Professional, scientific and technical services 1,700
Construction 100
Accommodation and food services 1,200
Electricity, gas, water and waste services
-5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
Employment (persons)
Baseline employment Additional employment & value of change
Parramatta 2021 | 27Case study: The retail and wholesale sectors in Parramatta The retail and wholesale trade The growth Parramatta’s phase An additional $3 billion in sector in Parramatta has declined over the next five years is expected turnover is estimated over the in employment terms over the to increase the scale of the retail five year period. In line with the last 10 years from approximately and wholesale sector. During somewhat lumpy nature of the 23,000 people in 2006 to 18,000 the construction phase to 2021, construction activities, these people today. This is likely there will be a short term boost effects are less significant in 2019 explained by technological to wholesalers and retailers as and 2020 but will grow in 2021. In advances such as the growth businesses purchase inputs for summary, by 2021 the retail and in online shopping, in-store their developments. Retailers wholesale trade sector will: innovations that have improved will also see increased activity as • employ 17,300 people (up from productivity (automated tellers for construction workers consume 16,200 under current trends) example), and the concentration locally. Figure 18 shows this of activity in larger shopping impact – the growth spurt is • turnover $15.2 billion (up from centres rather than in strip estimated to support over 2,000 $14.8 billion under current shops. This is not a Parramatta retail and wholesale employment trends, an increase of about specific trend; employment across opportunities in Parramatta in the $1.2 million a day) Sydney’s retail and wholesale first two years. • contribute $2.15 billion trade sector has been fairly towards Parramatta’s Gross stagnant over the same timeframe. Regional Product (an increase However, while employment from $2.08 billion under has been flat or declining, both current trends) Sydney and Parramatta have seen productivity in retail and wholesale increase. As Figure 17 shows, Parramatta’s value added has been relatively flat over the last 10 years as employment declined, which highlights the increasing productivity of the sector. 28 | PwC
Artists impression of Parramatta Square
The longer term impacts on the Figure 17: Retail and wholesale trade sector in Parramatta and Sydney
retail and wholesale trade sector
are likely to be even greater 140
Change in retail and wholesale sector
than this, as the relocation of 130
the Museum of Applied Arts and
120
Sciences (anticipated to open in
(2006=100)
2022) is expected to bring more 110
than 1 million visitors per annum.
100
If each visitor spends $100 while in
the area and 1/3rd of that went to 90
retailers, the museum alone would 80
expand the output of Parramatta’s
70
retail sector by 1 per cent. In 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
addition to this, many of the extra Sydney employment Parramatta employment
22,000 workers (noted above in Sydney value added Parramatta value added
page 25) will relocate in 2021
(under the assumptions applied in
this analysis such as Parramatta
Figure 18: Change in retail and wholesale trade turnover and employment
Square being completed by 2021).
3,000
These workers will subsequently
spend more, supporting local
2,500
retailers and wholesalers.
2,000
1,500
1,000
500
0
2017 2018 2019 2020 2021
Additional employment (persons) Additional turnover ($m)
Parramatta 2021 | 29Appendix A
The economic
contribution of
Hospitals and
Universities in Sydney
The Westmead health precinct average growth was also seen
provides an opportunity to in jobs and the productivity of
stimulate growth through the areas.
health and education linkages Importantly, this above average
growth occurs across a range of
At a glance, simple co-location
sectors in these locations, not
of a hospital and a university
just the health and educational
would seem to be enough to
sectors. This points to the dynamic
encourage collaboration and
nature of these clusters and the
generate innovation in Sydney.
additional benefits that flow over
Health care and education in areas
and support other sectors. While
with a hospital or university both
the Sydney sample is a small one,
significantly outstripped average
the observations back up broader
growth in Sydney between 2001
theory and other findings that a
and 2015 (see Figure 19). Above
Key trends
Compound annual
growth rate Sydney Hospital & University
Economic (GRP) 1.9% 4.0%
Employment 0.9% 2.6%
Productivity 1.0% 1.4%
Source: PwC Geospatial Economic Model (GEM)
30 | PwCdiverse range of complimentary The Westmead health precinct,
sectors clustering around anchor with recent capital investment, has
tenants or industries generates the raised the profile and productivity
greatest returns. of the health sector in Parramatta.
Westmead is Australia’s largest
However, co-locating a hospital
health services precinct, and is
and a university doesn’t necessarily
an international leader in critical
result in strong economic growth.
and acute healthcare, medical
Closer inspection of the research, medicine and nursing
performance of each location education, allied health professions
points to different drivers of and science and technologies
growth, both in terms of the related to health. Westmead
macro-level drivers and also precinct partners include Western
precinct specific considerations. Sydney Local Health District, The
These imply that simple co-location Children’s Hospital at Westmead,
of the health and university Westmead Private, Westmead
precincts are not the only Institute for Medical Research,
ingredients to generate growth. The Children’s Medical Research
Institute, The University of Sydney
and Western Sydney University.
Figure 19: Growth of areas with a Hospital and University in Sydney
(economic output, index)
190
180
170
160
150
140
130
120
110
100
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
Areas with a university and hospital Sydney average
Parramatta 2021 | 31Appendix B
International
examples of ‘second
city’ development
Brooklyn, New York, USA
Brooklyn has experienced Supporting this private investment,
sustained investment and the City and State government has
regeneration efforts for over invested more than $1.5 billion in
a decade. Since the New York public infrastructure, open space
City’s formative Downtown and cultural facilities.
Brooklyn rezoning in 2004,
investment in infrastructure and From Back Office
urban regeneration has led to the to Prime Market
establishment of Brooklyn as a
Brooklyn was long considered
highly desirable and diverse place
the ‘back office’ to Manhattan.
to live, visit and work.
The single biggest objective of the
Urban Regeneration Driving Downtown Brooklyn rezoning
was to stimulate commercial
Growth: 2004 Downtown
office development. However,
Brooklyn Rezoning no new office buildings were
Since 2004, nearly 3.8 million developed in Downtown for the
square metres of residential, decade following. Having said
commercial and institutional space this, the commercial office market
has been developed, or is under has enjoyed significant growth
construction, with more than from 2014 with a number of
$10 billion of private investment new commercial developments
into a previously overlooked area completing. Traditionally more
of an outer borough. Since 2000, affordable than neighbouring
the population within Brooklyn Manhattan, Downtown Brooklyn
has grown by 126,823 people*. has over the past decade, attracted
emerging technology, media,
creative and start-up firms.
* Note: Period between 2000 to 2013
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