Manhattan infrastructure model may suit Sydney
An expanding population in Sydney is creating greater demand for inner-city education and healthcare facilities, which is why the city might consider mirroring Manhattan’s successful infrastructure growth model, says a report from JLL.
Sydney CBD Office Conversions: Manhattan – a template for Sydney?, from JLL, suggests the future of the Sydney CBD might be similar to a scenario that played out on the island of Manhattan in New York.
The research report reveals that the number of City of Sydney residents aged 0-17 is expected to increase 80.6 per cent by 2036, while the city has a predicted population growth of 46 per cent over the next 22 years. As a result, there will be additional need for educational and social infrastructure.
New York experienced similar growth in its residential population from 2000-2010, when the number of residential units in Lower Manhattan doubled to more than 27,800, the research found. Following the 2008 recession, the area’s office vacancy rates skyrocketed and rents dropped, opening the doors for tenants in the education sector.
JLL states that Sydney’s high vacancy rates, ageing office stock and growing residential population could result in the city adopting Manhattan’s template. Sydney is also experiencing rising levels of offshore interest in its residential property market as well as conversions of office space for residential use. As a result, development of social infrastructure over the medium term will need to pick up its pace.
The city’s Sustainable Sydney 2030 Community Strategic Plan will also affect trends, as it aims to ensure all residents are within walking distance of most local services, from childcare and health to leisure and learning facilities. JLL states that the continuous growth in the inner-city population will create a higher cost of living and the need for parents to work and use early childhood education and care (ECEC).
The ECEC sector is a critical issue for the City of Sydney. The shortfall of ECEC places is projected to rise to 5976 by 2031 unless substantial expansion occurs.