An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

Commuters

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

j.ballantyne1990-6AQqhLzZaK

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

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