Property Council’s Plan for CBD Gains Traction

This week the Property Council released its plan to revitalise Perth CBD and entered the City’s free parking debate.

The plan, which comes in response to recent reports which shows  rising retail and office vacancies focuses on smart strategic planning and increasing foot-traffic in the CBD.

Priorities, to support the economic transition in the CBD, include:

CBD light rail

With major projects, such as Perth Stadium, Perth City Link and Elizabeth Quay all well underway, connectivity is a major issue that Perth must address.  The CAT bus system is great but it’s not direct and it needs a central transport spine like a CBD light rail line, possibly down St George’s Terrace.

Re-thinking old buildings

Other cities have addressed the emerging problem of rapidly deteriorating older commercial buildings by incentivising the upgrading or re-adaption of aging buildings.  One solution taken up in Sydney, Melbourne and Adelaide is the creation of Building Upgrade Schemes.  This requires State legislation to allow local authorities like the City of Perth to bring building owners, tenants and financiers together and agree to terms for the upgrade of an old building.  The local authority would then facilitate the upgrade through its planning processes.

New precincts in the CBD

One of the benefits of spreading the major projects around the CBD is the potential to create new precincts in the CBD.  Much like Cathedral Square which has become multi-use precinct including legal, civil and hospitality uses, other precincts can be created to be the attractors of new industries in the CBD.  This could be backed up with a marketing campaign around business attraction in the CBD.

Retail competition

Competition is heating up as suburban activity centres are going through multi-million dollar redevelopments, this will only increase the attraction of staying in the suburbs to shop, dine and do business.  Facing up to this competition won’t be easy; however the retail sector in the Perth CBD could consider a similar overhaul if we are to compete with these emerging markets.

Plans to develop a cinema in Raine Square as well as other entertainment offerings, and the imminent upgrade of Forrest Chase are good examples of the CBD responding to the suburban challenge.

Security
Anti-Social behaviour in the CBD is a genuine concern for property owners and tenants. A new strategic plan for the CBD must tackle the security issue. This includes greater surveillance and patrolling.

Parking Costs 
High parking costs in the CBD are also an issue for the CBD retail sector. A major factor contributing to Perth’s high parking rates is the State Government’s CBD parking levy which is more than $1000 per year, per bay. A simple and effective way to lower parking costs and attract more shoppers is to wind back some of the sharp increases in the levy in recent years.

The Property Council’s plan generated media interest from the West Australian, 6PR and ABC. This has led to an intensifying debate about whether the City of Perth needs to look at offering free weekend parking to draw customers from suburban shopping centres.

The Property Council, although supportive of initiatives to attract shoppers to the CB felt allowing Free parking would unfairly target thee private parking provider’s, and instead, has suggested the state government reform the current parking levy rates. A lower tax in parking will result in more affordable parking 7 days a week.

You can view the Property Council’s statement here.

You can also view the story in the West Australian here.