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                  October 2016

Parramatta 2021
Unlocking the potential
of a new economy
Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
2 | PwC
Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
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
Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
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
Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
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
Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
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
Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
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
Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
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 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
Parramatta 2021 | 9
Parramatta 2021 Unlocking the potential of a new economy - www.pwc.com.au October 2016 - Invest Parramatta
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 | 11
This 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 | 13
Parramatta 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 | PwC
2.3 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 | 15
This 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 | PwC
Over $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 | 17
Diverse 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 | PwC
Artists 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 | 19
The 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 | PwC
Likely 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 | 21
B. 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 | PwC
International 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 | 23
The 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 | PwC
Parramatta 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 | 25
The 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 | PwC
A 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 | 27
Case 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 | 29
Appendix 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 | PwC
diverse 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 | 31
Appendix 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

32 | PwC
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