Building Employment Opportunities in Sydney’s South · 2016-03-16 · 6 Building Employment...

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Building Employment Opportunities in Sydney’s South

Volume 1Part 1: Background

Part 2: Industrial Employment & DemandPart 3: Planning Policy Review

February 2009

The Group”comprising:

Hurstville City CouncilSutherland Shire CouncilCanterbury City Council

NSW Department of Planning

C/- The General ManagerHurstville City Council

PO Box 205Hurstville BC NSW 1481

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DISCLAIMER Whilst the information contained in this document has been prepared in good faith and with due care, no representations or warranties are made as to the accuracy, currency, completeness, suitability or otherwise of any part of such information.

Jones Lang LaSalle, its officers, employees, subcontractors and agents shall not be liable (except to the extent that liability under statute or by operation of law cannot be excluded) for any loss, liability, damage or expense arising directly or indirectly from any use or disclosure of or reliance on such information, including, without limitation, any disclosure or publication by the Client, its officers, employees, contractors or agents or any other person to any of the parties named in this document or any other third party. All rights are reserved.

PRINCIPAL AUTHORS: David Snoswell: Local Director, Jones Lang LaSalle

Craig Bagley: Urban Development Manager, HASSELL

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TABLE OF CONTENTS

1. BACKGROUND ..............................................................................6 1.1 LITERATURE REVIEW...................................................................... 6

1.1.1 St George Economic and Employment Strategy: Hill PDA, August 2006........................................................................... 6 1.1.2 The Airport City – “Aerotropolis” ......................................... 7 1.1.3 Comparative Economic Indicators: Lawrence Consulting........................................................................................ 7 1.1.4 Sutherland Shire – Retail & Commercial Analysis.............. 8 1.1.5 Sutherland Shire’s Strategic Plan – Our Shire, Our Future: Our guide for Shaping the Shire to 2030 ............................ 8 1.1.6 Hurstville Horizons and Snapshot 2004.............................. 9 1.1.7 Canterbury Industrial Lands Study, Hill PDA, May 2005 9 1.1.8 Canterbury 10 Year Strategic Plan 2008-2017................. 10 1.1.9 Towards 2032 – City of Canterbury Economic Development and Employment Strategy (Draft), 2009 ................. 10

1.2 PLANNING POLICY REVIEW .......................................................... 12 1.2.1 NSW State Plan 2006 ....................................................... 12 1.2.2 State Infrastructure Strategy ............................................. 13 1.2.3 Sydney Metropolitan Strategy - City of Cities: A Plan for Sydney's Future 2005 ...................................................... 14 1.2.4 Draft Subregional Strategy – Southern Subregion ........... 16 1.2.5 Future Role of Employment Lands in the South Subregion ...................................................................................... 19 1.2.6 SREP No. 17 - Kurnell Peninsula ..................................... 24

1.3 REGIONAL DEMOGRAPHIC ANALYSIS ............................................. 25 1.3.1 2006 Census: Usual Resident Analysis............................ 25 1.3.2 2006 Census – Employee Analysis .................................. 31 1.3.3 Employment by Destination Zone..................................... 36

2. INDUSTRIAL EMPLOYMENT & DEMAND ..................................42 2.1 ECONOMIC OVERVIEW ................................................................. 42 2.2 INDUSTRIAL PROPERTY TRENDS................................................... 43 2.3 SYDNEY INDUSTRIAL MARKET ...................................................... 45 2.4 INFRASTRUCTURE INVESTMENT .................................................... 47 2.5 EMPLOYMENT LANDS REVIEW ...................................................... 50 2.6 EMPLOYMENT PROJECTIONS........................................................ 58 2.7 IMPLICATIONS FOR THE STUDY AREA ............................................ 61 2.8 BULKY GOODS ZONES .................................................................. 63

2.8.1 Overview ........................................................................... 63 2.8.2 Supply Drivers................................................................... 63 2.8.3 Demand Drivers ................................................................ 63 2.8.4 Development Trends......................................................... 64 2.8.5 Planning Policy Issues ...................................................... 66 2.8.6 Bulky Goods Provision...................................................... 67 2.8.7 Bulky Goods in the Study Area ......................................... 68

1. PLANNING POLICY REVIEW ......................................................70 2.8.8 Council's Responses to Subregional Strategy.................. 70

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2.9 LOCAL PLANNING CONTEXT ................................................. 74 2.9.1 Canterbury Environmental Planning Instruments ............. 74 2.9.2 Hurstville Environmental Planning Instruments ................ 83 2.9.3 Sutherland Shire Council Environmental Planning Instruments.................................................................................... 90

LIST OF FIGURES Figure 1-1: Category 1 Employment Lands - Canterbury 20 Figure 1-2: Category 1 Employment Lands - Hurstville 21 Figure 1-3: Category 1 Employment Lands - Sutherland 22 Figure 1-4: Category 2 Employment Lands - Canterbury 23 Figure 1-5: Age Profile, Three LGA Total compared to Metro. Sydney, 2006 29 Figure 1-6: Birthplace, Three LGA Total compared to Metro. Sydney, 2006 29 Figure 1-7: Individual Income, Three LGA Total compared to Metro. Sydney, 2006 29 Figure 1-8: Household Income, Three LGA Total compared to Metro. Sydney, 2006 30 Figure 1-9: Household Structure, Three LGA Total compared to Metro. Sydney, 2006 30 Figure 1-10: Occupation, Three LGA Total compared to Metro. Sydney, 2006 30 Figure 1-11: Total Employment Distribution by Destination Zone, 2006 39 Figure 1-12: Proportion of Industrial Employment by Destination Zone, 2006 40 Figure 1-13: Total Industrial Employment Distribution by Destination Zone, 2006 41 Figure 2-1: Transport & logistic sector spending on buildings 44 Figure 2-2: Sydney’s Industrial Precincts 45 Figure 2-3: Industrial development activity, Sydney 46 Figure 2-4: Household Goods Turnover Growth in NSW, June 2003-June 2008 64 Figure 1-1: Employment Generating Lands – Canterbury and Hurstville 84 Figure 1-2: Employment Generating Lands - Sutherland 93

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LIST OF TABLES Table 1-1: Demographic Analysis, Selected Medians, 2006 25 Table 1-2: Demographic Analysis, Population, Birthplace and Income, 2006 26 Table 1-3: Demographic Analysis, Household Characteristics, 2006 27 Table 1-4: Demographic Analysis, Occupation and Travel to Work, 2006 28 Table 1-5: Origin of Employees within Study Area, 2006 31 Table 1-6: Destination of Employment for Residents of Study Area, 2006 33 Table 1-7: Local Employment Base versus Resident Labour Force, 2006 34 Table 1-8: Skills Base of Residents versus Local Employment Base , 2006 35 Table 1-9: Industry of Local Employment Base , 2006 36 Table 2-1: New South Wales at a Glance 42 Table 2-2: Major Industrial Zones in Study Area, Part 1 51 Table 2-3: Major Industrial Zones in Study Area, Part 2 52 Table 2-4: Major Industrial Zones in Study Area, Part 3 53 Table 2-5: Major Industrial Zones in Study Area, Part 4 54 Table 2-6: Metropolitan Strategy dwelling and job targets 58 Table 2-7: Employment levels and growth rates 59 Table 2-8: Employment Forecasts – Selected Employment Zone Industries, Three Council Area 60 Table 2-9: Employment Forecasts – Selected Growth Sectors, Three Council Area 61 Table 2-10: Major Construction Activity: Three Council Region, 2004-2009 47 Table 3-1: Standard LEP Zone Transfer: Canterbury City Council 77 Table 3-2: Standard LEP Zone Transfer: Hurstville City Council 85 Table 3-3: Standard LEP Zone Transfer: Sutherland Shire Council 94

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1. BACKGROUND

1.1 Literature review

1.1.1 St George Economic and Employment Strategy: Hill PDA, August 2006

This study was prepared for Hurstville, Rockdale and Kogarah Councils with funding assistance from the NSW Department of Planning. The objective of the study was to develop a long term regional vision for the Council areas that would stimulate sustainable economic development and employment.

Key findings/recommendations relating to Hurstville that are relevant to the current study included the following:

• There is an existing under provision of bulky goods retailing in Hurstville, although nearby precincts (Moore Park, Caringbah) cater to some of this demand.

• Bulky goods uses should not compete with or “crowd out” industrial users from industrial land, but be developed where possible in existing centre zones or mixed use zones. In some circumstances, existing clusters along main roads may be further developed.

• Employment and land modelling identified a growth in demand for transport and storage uses, which may to a degree be absorbed through the potential loss / reuse of manufacturing uses.

• Industrial zoned land should essentially be retained, with future demand being driven by proximity to the airport and port.

• More intensive development should be considered in commercial centres.

• The “global economic corridor” should be extended south to include Hurstville.

• “Upzone” Kingsgrove to allow it to emerge as a premium business park with higher FSR (2:1) and greater office floor area percentage (up to 60%).

• Encourage the clustering of industries. • Consider building off the opportunities created by

proximity to the port and airport, with the potential decline in manufacturing being replaced by local support industries and airport related industries.

• Hurstville should be differentiated from other major regional centres as a Gateway City – due to proximity to port/airport.

• Aim to lessen journey to work times by creating and

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retaining employment opportunities in Hurstville.

The phrase “aerotropolis” is used in the Hill PDA report to describe the potential of the area to build on its proximity to the airport, which is seen as a major future driver of economic growth. This term is attributed to Dr. John D. Kasarda, an American academic, and is discussed further below.

1.1.2 The Airport City – “Aerotropolis” The Airport City, or Aerotropolis is a concept that has risen to prominence this decade. Major airports are now being seen as powerful engines for local economic development.

The concept is similar to that of a central city core, with aviation-oriented businesses clustering around the airport and along transport corridors radiating out from the airport.

Drivers of growth in Airport Cities include:

• The simple fact that both passenger and freight traffic is growing at a fast rate;

• Airports are constantly looking for new sources of income;

• Airports typically have very good access to the metropolitan population and often have cost competitive land compared with other areas; and as cities grow and become more congested, using business centres near an airport for face to face meetings can save valuable time.

In terms of the relationship between the study area and the airport, the key infrastructure of the M5 Motorway and Princes Highway provide opportunities for the development of clusters of airport related activity, providing both local employment opportunities as well as sustainable industries that may replace manufacturing uses as this sector declines in terms of importance. The Hurstville City Centre may also benefit from being one of a small number of significant regional centres within close proximity to the airport. There is significant potential for the study area to benefit further from its strategic location near Sydney Airport, as well as its proximity to the Port of Botany.

1.1.3 Comparative Economic Indicators: Lawrence Consulting This report summarises a range of indicators across the three Councils, including population, employment, industrial land, land values, building approvals, gross regional product and transport. Much of this assessment is covered in Section 1.2 and 1.3 of this report in further detail.

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1.1.4 Sutherland Shire – Retail & Commercial Analysis This report was prepared for Sutherland Shire Council by Hirst Consulting Services in July 2001. The report concentrated on the main commercial and retail centres in the Shire, the three major centres being:

• Sutherland • Miranda • Caringbah

As at 2001, Miranda was the largest retail centre (Westfield Miranda), but had limited commercial space, which was centred along The Kingsway. Sutherland, at the junction of Old Princes Hwy and The Grand Parade, provided a more balanced mix of retail and non-retail uses compared with Miranda. Caringbah was described as a traditional strip centre and second to Miranda in retail space. In 2001, Caringbah had significant amounts of vacant space, which accounted for 14% of all premises.

Two main bulky goods precincts in the Shire were identified: • Taren Point Road, Caringbah; and • Old Illawarra Road, Menai

Caringbah is dominated by Caringbah Supacenta. Limited analysis of the bulky goods sector is included in this report.

The analysis points to: • Sutherland growing in terms of importance as a

commercial centre, with additional residential and retail space. Consolidation of its role as the main administrative centre.

• Miranda remaining as primarily a retail centre, but with improved integration between Westfield and the main strip. Limiting commercial expansion should be allowed in favour of Sutherland.

• Caringbah was struggling as a centre and diversification was recommended. This centre should build on its proximity to Sutherland Hospital.

1.1.5 Sutherland Shire’s Strategic Plan – Our Shire, Our Future: Our guide for Shaping the Shire to 2030

The Sutherland Shire’s Strategic Plan focuses on the three key directions of people, place and nature. Much of the document is about protecting what makes the Shire a great place to live.

In terms of employment and economic development, the relevant directions are:

• Local suburban activity centres that support a healthy

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local economy and build a sense of community; and • Promotion of the Shire as a prime location for modern,

innovative, clean commercial and industrial enterprise

Local employment opportunities that provide greater self containment, home-based businesses and opportunities for local business development / business incubators are key strategies. The Shire is considered to be well placed for business / economic development, with good major road and rail transport linkages, access to Sydney airports, Port Botany, the Sydney CBD and Wollongong. Environmentally sustainable commercial enterprises are encouraged, leading to greater economic diversity that supports local jobs and skills development.

1.1.6 Hurstville Horizons and Snapshot 2004 These documents provide strategies and long term future goals for the City of Hurstville. The major economic goal of Hurstville Horizons is the development of the Hurstville City Centre as a regional centre as well as developing other commercial and employment centres throughout the city. This goal aims to provide local employment opportunities, with a range of jobs that match the local skills base so that more people can work locally.

It is noted that this goal is in line with the direction of the Metropolitan Strategy and the draft Sub-regional Strategy for the South Subregion, which aims to strengthen the commercial centre of Hurstville as the Major Centre for the South.

Hurstville Snapshot 2004 reports on the progress of the major goals. One of the key actions being undertaken is the development of the Hurstville City Centre Master Plan.

1.1.7 Canterbury Industrial Lands Study, Hill PDA, May 2005 This report highlighted the following issues:

• Loss of 8 Ha of industrial land between 1996 and 2005 (195 down to 187 Hectares). This has resulted in under-supply of industrial land in inner suburbs and placed pressure on land prices.

• Canterbury’s industrial land seen as primarily serving a local role for Canterbury and the local region – importance as a local employer and service provider.

• Estimated that Canterbury industrial land contains 784 businesses and employs 13,000 to 14,000 workers.

• The study recommended changing the zoning of industrial land fronting Canterbury Road to a Business zoning, which would still be employment generating uses and retain the employment base.

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• Precinct 4 (Payten Avenue) and Precinct 12 (Canterbury Road / Canterbury Rail Station / Cooks River) were identified as more appropriate for non industrial use (residential at Payten Avenue; Mixed use at Canterbury Road)

Canterbury’s strategic advantage is seen as its location near Port Botany and good access to the M5, linking to Port, Airport and industrial areas to the west.

Enfield Intermodal Terminal is seen as having significant multiplier impacts, being located just north of the LGA.

A survey of businesses was carried out in November 2003 through the 14 industrial precincts in Canterbury. The survey indicated that:

• Manufacturing was main business type (45%)

• Services (22%)

• Wholesaling (18%)

Manufacturing accounted for 58% of employees

Storage uses, not surprisingly, had low employment density.

The survey identified a number of conflict areas with residents, in particular Wiggs Road Riverwood; Bonds Road Riverwood; and Harp Street Belmore/Campsie. Issues primarily related to heavy vehicles, with some odour and dust issues also identified.

1.1.8 Canterbury 10 Year Strategic Plan 2008-2017 Canterbury Council has prepared a 10 year Strategic Plan to build on Council’s priorities of building good infrastructure, creating vibrant town centres and expanding recreation facilities.

The City Plan comprises the City Strategic Plan, Delivery Plan, and Operating Plan, Works Program, Social Plan, Environmental Management Plan, and Governance Improvement Plan.

The Plan includes themes of aspiring to a prosperous local economy, quality infrastructure and transport services.

1.1.9 Towards 2032 – City of Canterbury Economic Development and Employment Strategy (Draft), 2009

The report examined the employment lands within the Canterbury LGA and recommended future economic development and employment generation strategies for the LGA.

The study highlights that Canterbury is not expected to show strong growth in employment but recent trends of employment losses need to be halted. Issues include:

• Land fragmentation

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• Close proximity but limited access to M5

• Residential conflicts

• High traffic volumes along Canterbury Road

• Rundown nature of Canterbury Road

• Lack of employment and training opportunities

Key opportunities (some long term) identified include:

• Canterbury Racecourse – possible long term opportunity

• Council assets in Kingsgrove, for “catalyst” development

• The Sunbeam site – the key vacant site in Canterbury’s employment lands, although continuing uncertainty over its development is an issue

• Harp Street (Sunbeam / Pickle) – creation of a mixed use and medical precinct

• Canterbury Town Centre – good opportunities for residential development, small scale offices and business growth along Canterbury Road

• Canterbury Road – Maximising the exposure offered by this busy road by rezoning Employment Lands to Enterprise Corridor

• Campsie Centre – Opportunities for increased commercial floor space

• Modernising Kingsgrove – Canterbury’s premier Employment Lands Precinct

The report highlights the loss of retail employment in the LGA as a particular concern and notes that no local centre in Canterbury is proposed to be elevated to “strategic” status.

Riverwood Business Park was identified as a quality recent industrial development, which has been made possible by the large size of the land holding – highlighting the importance of discouraging subdivision.

In modernizing Kingsgrove, the creation / retention of large sites and alternative access to Gareema Circuit were key strategies. Opportunities to increase industrial areas included rezoning Bus Depot, residential and recreational areas to promote redevelopment.

The proposed strategy for the Sunbeam site was to develop it as medium density residential, given the existing surrounding uses. Elsewhere, the Harp Street Belmore/Campsie precinct was proposed to be rezoned / developed into a mixed use precinct with business zoning to Canterbury Road, further medium density housing and better linkages to the Canterbury Hospital to the north.

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The draft strategy also recommends 25 economic development actions. These cover the following broad areas:

• Branding

• Promotion – eg. Of Canterbury’s cultural strengths

• Innovation – particularly in manufacturing

• Business development – including business incubation

• Supporting home based businesses

• Image – improving imaged of industrial areas

• Skills development

• Communication and information – regular communication with businesses; provision of information

• Attracting inward investment – new business attraction

• Ongoing monitoring and evaluation

It is understood the report is in draft form as at July 2009.

1.2 Planning Policy Review

1.2.1 NSW State Plan 2006 The NSW State Plan guides key services, sets priorities and seeks to respond to all identified challenges and opportunities for NSW in the next 10 years. The Plan identifies the maintenance and investment in existing infrastructure to support the forecasted growth in population and employment and improvements to transport as key community priorities. Relevant priorities for this study include:

Priority F2 Increased employment and community participation for people with disabilities: setting the target of increasing employment and community participation rates for people with a disability.

Priority P2 Maintain and invest in infrastructure: maintain average growth of 4.6% in capital expenditure.

Priority P3 Cutting Red Tape: reduce the regulatory burden on business.

Priority P4 More people participating in education and training throughout their life: Increase participation in vocational education and training from 11.7% to 16% by 2016.

Priority E3 cleaner air and progress on greenhouse gas reductions: meet national air quality goals in NSW and cut greenhouse gas emissions by 60% by 2050.

Priority E5 Jobs closer to home: sets the target to increase the percentage of the population living within 30 minutes by public transport of a city or major centre in Greater Metropolitan Sydney. In

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conjunction with the subregional strategies, the plan will ensure there is enough appropriately zoned land in the right locations to cater for projected employment growth and change in the area.

Priority E7 Improve the Efficiency of the road network: sets the target to improve the efficiency of the road network during peak times as measured by travel speeds and volumes on Sydney's major road corridors.

Priority P2: Maintain and invest in infrastructure: sets the target to maintain average annual growth rate in capital expenditure of 4.6 per cent nominal over the next decade and develop and report measures of maintenance effectiveness.

The priorities of the NSW State Plan will be considered in the formulation of any relevant policy imbued in this report.

1.2.2 State Infrastructure Strategy The State Infrastructure Strategy was released in 2006. The strategy identifies plans and delivery of a decade of infrastructure investment in New South Wales. The Strategy is primarily designed to respond to the growing demand for infrastructure, which will remain high over the next decade due to several reasons - including population growth, technological growth, and industrial and commercial development.

It has been identified that an important role for Government infrastructure is to support industry, as there is a forecasted economic growth, with an overall expansion in trade. This growth results in a 7.4 per cent growth per annum in freight transport, which will ultimately lead to an increase in freight traffic on Sydney's roads over the next 15 years. The expansion of Port Botany and Port Kembla, in association with related road and rail improvements will complement this growth.

Although the southern employment lands are not specifically mentioned in the Strategy, the success and durability of future employment lands and industrial and commercial development will rely heavily upon the support of transport links and infrastructure.

It is noted that budget estimates are provided for critical infrastructure that may affect the southern region, being the Enfield Intermodal Facility and Port Botany, as well as private investment in the expansion of Sydney Airport.

Other items of relevance to this study include the desalinisation project preparatory work at Kurnell, the Southern Sydney Freight Line and the proposed F6 transport corridor.

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1.2.3 Sydney Metropolitan Strategy - City of Cities: A Plan for Sydney's Future 2005

The Metropolitan Strategy (Metro Strategy) is the major planning initiative of the Department of Planning to meet the challenges associated with:

• Population Growth over the next 25 years. Residential accommodation and employment opportunities are needed for an additional 1.1 million people who are projected to be living in the Greater Metropolitan Region by 2025.

• Dwindling land supply and the need to contain growth to protect conservation areas and agricultural land.

• Improvements to infrastructure, particularly public transport.

• More effective use of natural resources, particularly energy and water.

The Metro Strategy determines where the key centres in the Sydney Metropolitan area are located to determine opportunities for growth and employment generation.

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There are seven strategies in the Metro Strategy including 'Economy and Employment', which aims to concentrate employment, ensure good management of existing land resources, ensure there is sufficient supply of suitable commercial sites and employment lands and efficiently utilise existing infrastructure. As defined by the Metropolitan Strategy, Employment Lands include traditional industrial areas, and business and technology parks for higher order employment.

The Metropolitan Strategy identifies employment growth and change, with a general shift towards integrated office, production and warehousing operations, which will ultimately require more land zoned for economic activities. The Strategy outlines plans and actions of relevance to this study associated with:

• ensuring that there are adequate stocks of well located lands across Sydney to meet the needs of different industries and subregions;

• ensuring that new employment lands are accessible and serviced in a timely way;

• preventing or manage conflicts between industrial and other activities; and

• ensuring coordination between planning and infrastructure provision to enhance economic, social and environmental benefits.

In spatial terms, the Strategy aims to:

• protect employment lands in strategic locations, particularly around Sydney Airport, Port Botany and the Orbital Motorway Network;

• encourage the redevelopment of disused industrial sites in suitable locations served by utilities and public transport and proximate to the labour force - and improve opportunities for new investment and jobs in these areas; and

• plan and develop new greenfield sites to meet demand in new growth areas and growth that cannot be accommodated in established areas.

The strategy for economy and employment growth forecasts 500,000 new jobs will be required in Sydney by 2031. Jobs traditionally located within industrial areas, including manufacturing, textiles, clothing, machinery, transport and storage, are predicted to decline. However, the transport, storage and logistics functions associated with the assembly and manufacturing of goods will increase. In response, an additional 7,500 hectares of industrial land will need to be set aside for these activities.

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1.2.4 Draft Subregional Strategy – Southern Subregion The Draft Subregional Strategy translates the objectives of the Metropolitan Strategy and State Plan into strategies to enable implementation at a local government level. Ten 'subregions' have been established with Canterbury, Hurstville and Sutherland Councils forming part of the larger Southern Subregion which also includes Kogarah, Rockdale and Marrickville Councils.

The three local government areas the subject of this study had a total population of 425,000 residents in 2001.

By 2031, this area is expected to require an extra 21,300 dwellings and employ an extra 11,500 people. Interestingly, the southern subregion has one of the lowest rates of residents who live and work within the same subregion with the Draft Strategy including key actions to deliver an additional 29,000 jobs within the Southern Subregion by 2031.

A key plank of the subregional strategy is the retention of Strategic Employment lands, specifically to:

• Investigate appropriate uses for particular employment areas;

• Protect employment lands identified as strategically important; and

• Plan for sufficient zoned land to accommodate subregional and LGA employment targets.

Some of the key issues coming out of the Sub-regional Strategy are: • Residential population has been growing faster than

employment • There is a relatively low level of employment self

containment, which should be addressed1 • Manufacturing industries still make up a larger than

average proportion of local jobs • The region is strategically located to Sydney Airport and

Port Botany • There is continuing pressure to use industrial zoned

land for non-industrial uses • Hurstville centre is earmarked for major employment

growth.

1 Employment self-containment is the number of residents working in local jobs as a proportion of total residents in the labour force

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The employment targets take into account total employment within each local government area (LGA). The target for each LGA and a short commentary on each is below.

Canterbury

• Deliver an additional 500 jobs within the Canterbury Local Government Area (LGA) by 2031, despite significant job losses in manufacturing areas in recent years and the possibility that this trend may continue.

• Canterbury LGA has 171.5ha of Employment Lands, with large former manufacturing plants under pressure for non-industrial uses, and generally increasing pressure to rezone industrial land in Canterbury to residential.

• Wiley Park, Belmore (Burwood Road) and Canterbury Road have been identified as land that has the potential for a wider range of employment uses.

• The M5 Motorway has been identified as a corridor with some potential to allow growth in particular for industrial lands within the Canterbury LGA.

• Canterbury Road has been identified as a potential enterprise corridor, and parts of this corridor provides for low cost accommodation, including start-up offices, light industrial, showrooms, building supplies and retail.

• The Strategy recognises the importance of enterprise corridors as locations for local employment and economic activity.

• Canterbury Council is stated as preparing an Economic Development and Employment Strategy.

Hurstville

• 3,000 additional jobs between 2001 and 2031,

• One of the key actions for the south subregion being to strengthen Hurstville's Commercial Centre, with 4,100 additional jobs, part of which is in Kogarah.

• A key issue to be addressed is limiting potential future job losses in industrial zoned areas.

• Hurstville LGA has 84ha of Employment Lands; 54ha is located at Boundary Road in Peakhurst, which is a large industrial area.

• Zoning for the Hurstville Industrial Precinct (between Durham Street, Roberts Lane and Forest Road), should be retained to ensure service for the local community

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within close proximity to the major centre is maintained.

Sutherland

• 8,000 additional jobs between 2001 and 2031, with large, strategic industrial precincts needing to be protected and opportunities for growth as well as increased technology based industries exist.

• Sutherland has been identified as a potential major centre. It has been targeted to share in 6,000 additional jobs along with other listed potential major centres

• Sutherland LGA has 376ha of Employment Lands, with little vacant land within industrial zones.

• Alternative options for employment zoned land in Heathcote (between Heathcote Station and Heathcote Caravan Park) are considered.

• Caringbah-Miranda and Taren Point (approximately 120ha) comprise the largest cluster of different employment activities in the Sutherland LGA; recommended no further intensification of residential development should be supported in the area.

• West Menai identified as potential employment area, especially industrial activities, ensuring development reflects environmental significance, any Native Title implications, and any requirements of the Department of Defence.

• Growth is expected at Sutherland Hospital, between Caringbah and Miranda.

• Large, strategic industrial precincts need to be protected. Opportunities for growth as well as increased technology based industries exist.

The Sub-regional Strategy identifies the following areas and strategies to increase employment within the region:

• Enterprise Corridor Zones • Clustering of knowledge based industries (Magnet

Infrastructure) • Sutherland Hospital growth • Hurstville City Centre growth • Centres growth – particularly a greater mix of

employment • Opportunities for business parks – particularly high tech

parks • West Menai – future employment area

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• Rejuvenating old industrial areas

Given the quite significant employment growth targets for non industrial zoned land within the three subject LGAs, particularly Hurstville and Sutherland, limited growth within the existing industrial precincts is likely to be required to meet targets. Importantly, the loss of employment in industrial zones needs to be curtailed.

1.2.5 Future Role of Employment Lands in the South Subregion In February 2006, the NSW Government announced the establishment of an Employment Lands Task Force to advise on the provision of Employment Lands within Sydney, and outline a range of measures to protect and enhance supply and servicing of these employment locations.

The future roles of the existing employment lands in the South Subregion have been grouped into the following three Categories as identified and stated in the draft Subregional Strategy:

Category 1: Land to be retained for industrial purposes The Strategy indicates that “due to anticipated continued strong demand for Employment Lands across the metropolitan region, the majority of sites are currently considered to be most appropriately placed in Category One (i.e. to retain for industrial purposes). These are sites which presently function as industrial areas and provide a regional/national economic role (including heavy and light manufacturing or major freight facilities), a subregional role (such as manufacturing and distribution links in supply chains or utilities such as bus depot and water supply) or even a local role (such as auto repairs, local business services and trade supplies including building and plumbing)”. They vary significantly in size and whilst they may not all be significant employers, collectively they are seen as vital to the health of local and regional economies and should be retained to accommodate the future range of economic services to sustain those economies.

Classification of Category 1 lands does not mean that the sites cannot be intensified or redeveloped to meet modern industrial requirements and create additional employment and economic benefits. However, these areas must continue to primarily accommodate industrial and related uses, within the range generally allowed under current zonings.

Category 1 lands have been identified in Hurstville, Canterbury and Sutherland LGAs.

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Figure 1-1: Category 1 Employment Lands - Canterbury

Ashbury

Croydon Park

Belmore Lakemba

Punchbowl

West Riverwood, Wiggs Road

Riverwood, Belmore and Bonds Roads

Chapel Street Kingsgrove North

Clemton Park

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Figure 1-2: Category 1 Employment Lands - Hurstville

Peakhurst

Beverley Hills

Kingsgrove

Hurstville

Penshurst

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Figure 1-3: Category 1 Employment Lands - Sutherland

Engadine

Kirrawee

Kurnell Caringbah, Miranda, Taren Point

Heathcote

Menai

Category 2: Land with potential to allow for a wider range of employment uses These are lands that “may have potential to accommodate a wider range of employment uses or a more intensive scale of employment activity than currently permitted under an existing industrial zone. For example, they could be rezoned in part to allow for a higher percentage of office use, or even stand alone commercial development where criteria related to centres can be met, and could support a higher job density or intensity of activity.”

“Where this is considered, it must be demonstrated that it will not negatively impact on any surrounding specialised or commercial centres, but rather can contribute towards further economic growth of these centres. Such areas are likely to be in areas well serviced by public transport and where industrial activities are not functioning well due to surrounding land uses or site constraints.

In some circumstances an element of residential or other non–employment uses may be considered on part of these sites where this can be shown to not impact on the primary employment function of the area or will be affected by other land-use planning considerations, such as busy roads, rail lines or environmental constraints. Importantly,

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in these cases any non– employment uses (i.e. residential) would only be able to form a relatively minor element of development.

“Examples of Category 2 lands may include employment locations along road and rail corridors well serviced by public transport, such as Enterprise Corridors, or on the edge of existing Strategic Centres which can contribute to their growth”.

Category 2 land has only been identified in the Canterbury LGA.

Figure 1-4: Category 2 Employment Lands - Canterbury

Category 3: Land that could be investigated for alternative uses The third category of Employment Lands is for “those which could be investigated for alternative uses, including non–employment uses such as residential or new open or civic space.”

Prior to any rezoning, it would need to be illustrated that a Category 3 area does not provide a strategic local or regional economic role and is therefore not required to meet local future demand for employment land. It should also be shown how, through their redevelopment, they must contribute towards supporting other planning objectives such as residential growth through mixed use in areas of high accessibility and amenity or renewal of identified local and Strategic Centres.”

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February 2009

This category has little bearing on this study as no land has been identified within the three local government areas to have land that could be investigated for alternative uses.

1.2.6 SREP No. 17 - Kurnell Peninsula The SREP aims to protect the peninsula's natural environment, in particular the wetlands, while facilitating compatible development, and promoting and encouraging opportunities for commercial and industrial development consistent with the unique ecological and landscape attributes of the Kurnell Peninsula. This is implemented via statutory controls contained within the Policy, which includes zoning, built form and urban footprint, environmental protection, and restrictions on development of wetlands.

Under the SREP, development for the purpose of this study is identified under Zones No 4(a) (General Industrial Zone); 4(b) (Light Industrial Zone); 4(c1) (Special Industrial (Oil Refining) Zone); 4(c2) (Special Industrial Zone). Permissible development within these zones, relevant to the study, includes light industrial activities, which are non-offensive to the surrounding environment. However, bulky retail goods and warehouses are prohibited under Zone 4(b), but warehouses are permissible under Zone 4(a).

Some key restrictions to development apply to the Special Industrial Zones, in light of the sensitive ecological environment. These include:

• minimum subdivision sizes (4Ha if relying on Captain Cook Drive for sole means of access).

• minimum 50 % of the allotment is not built upon.

• a directive to Council to consider the level of any risk to life and pollution effects, including low level long-term effects, upon the health of people,

• restrictions on hazardous industries or storage establishments, an offensive industry or a toxic industry that not less than 50 per cent of the feedstock for the product being manufactured originates from a refinery on the Kurnell Peninsula.

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February 2009

1.3 Regional demographic analysis

1.3.1 2006 Census: Usual Resident Analysis This section provides analysis of the population and housing across the three Council regions as at the 2006 Census. Sutherland Shire is broken into its two component Statistical Local Areas (SLAs). Data is compared to the average for metropolitan Sydney (Sydney).

As at the 2006 Census, the three council areas had a total population of 409,135, or 9.9% of metropolitan Sydney’s total.

Table 1-1 provides an overview of selected medians for each of the four regions compared against metropolitan Sydney. What stands out from this analysis is the relative affluence of Sutherland residents compared with Hurstville and Canterbury.

Table 1-1: Demographic Analysis, Selected Medians, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics

2006 Census Population Hurstville CanterburySutherland Shire - East

Sutherland Shire - West

Three LGA Total

Metropolitan Sydney

Selected Medians

Median age of persons 38 36 38 36 37 35 Median individual income ($/weekly) 457 366 597 603 506 518 Median family income ($/weekly) 1,208 1,007 1,567 1,713 1,374 1,350 Median household income ($/weekly) 1,060 839 1,211 1,512 1,155 1,154 Median housing loan repayment ($/monthly) 1,742 1,600 2,000 1,900 1,811 1,800 Median rent ($/weekly) 240 190 260 260 238 250 Average number of persons per bedroom 1.2 1.3 1.1 1.1 1.2 1.1 Average household size 2.7 2.8 2.5 2.9 2.7 2.7

Variation from Metro. Sydney Average

Median age of persons 8.6% 2.9% 8.6% 2.9% 5.7%Median individual income ($/weekly) -11.8% -29.3% 15.3% 16.4% -2.4%Median family income ($/weekly) -10.5% -25.4% 16.0% 26.9% 1.7%Median household income ($/weekly) -8.1% -27.3% 4.9% 31.0% 0.1%Median housing loan repayment ($/monthly) -3.2% -11.1% 11.1% 5.6% 0.6%Median rent ($/weekly) -4.0% -24.0% 4.0% 4.0% -5.0%Average number of persons per bedroom 9.1% 18.2% 0.0% 0.0% 6.8%Average household size 0.0% 3.7% -7.4% 7.4% 0.9%

The age profile is marginally older than Sydney, particularly Hurstville and Sutherland Shire – East. With relatively low proportions of children and young adults and high numbers of people heading towards retirement, these areas may have a shrinking labour force over the next 10-20 years.

Canterbury is the most culturally diverse region followed by Hurstville. Both have higher than average proportions of overseas born residents. Key cultural groups in Canterbury are Chinese, Lebanese, Greek and Vietnamese. Hurstville’s main cultural groups are from China and Hong Kong.

Sutherland is predominantly Australian born, with the largest cultural group being from the UK.

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February 2009

Income levels are well below the Sydney average in Hurstville and Canterbury but well above average in Sutherland, particularly Sutherland - West.

Table 1-2: Demographic Analysis, Population, Birthplace and Income, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics



Three LGA Total

Metropolitan Sydney

Males 35,767 64,567 47,617 53,254 201,205 2,028,730 Females 37,957 65,396 49,807 54,770 207,930 2,090,461 Total 73,724 129,963 97,424 108,024 409,135 4,119,191

GenderMales 48.5% 49.7% 48.9% 49.3% 49.2% 49.3%Females 51.5% 50.3% 51.1% 50.7% 50.8% 50.7%

Age Profile0-4 years 5.9% 7.3% 6.0% 6.9% 6.6% 6.6%5-14 years 12.3% 13.0% 11.6% 14.2% 12.9% 13.0%15-19 years 6.4% 6.0% 6.1% 7.9% 6.6% 6.6%20-24 years 7.0% 6.8% 6.5% 6.6% 6.7% 7.2%25-34 years 13.9% 15.0% 14.0% 12.4% 13.9% 15.3%35-44 years 14.9% 15.6% 14.3% 15.0% 15.0% 15.3%45-54 years 13.7% 13.1% 13.5% 15.3% 13.9% 13.5%55-64 years 10.3% 9.7% 11.2% 11.5% 10.6% 10.2%65 years and over 15.5% 13.5% 16.7% 10.2% 13.8% 12.3%

BirthplaceAustralia 60.1% 48.7% 81.5% 83.4% 68.0% 65.5%Asia 20.7% 19.4% 3.1% 2.8% 11.2% 11.5%Europe 6.4% 9.1% 3.7% 3.1% 5.7% 5.3%UK 2.4% 1.3% 4.8% 4.9% 3.3% 4.6%Other 10.5% 21.6% 6.8% 5.8% 11.8% 13.1%

Individual IncomeNegative/Nil income 11.1% 11.8% 6.8% 7.6% 9.3% 9.6%$1-$249 21.9% 27.4% 17.5% 17.8% 21.4% 20.5%$250-$399 12.9% 14.0% 12.3% 11.4% 12.7% 12.0%$400-$599 13.9% 15.0% 13.6% 13.0% 13.9% 13.3%$600-$999 20.3% 18.7% 21.6% 20.9% 20.3% 20.3%$1,000-$1,599 13.4% 9.8% 17.6% 18.6% 14.7% 14.9%$1,600 or more 6.4% 3.5% 10.7% 10.7% 7.7% 9.4%

Household IncomeNegative/Nil income 2.0% 2.1% 1.0% 0.7% 1.4% 1.5%$1-$249 7.0% 9.4% 5.7% 4.0% 6.7% 6.5%$250-$499 12.7% 15.8% 10.0% 7.8% 11.7% 10.8%$500-$999 25.0% 29.4% 22.1% 18.0% 23.8% 22.8%$1,000-$1,699 25.4% 24.1% 24.8% 25.6% 24.9% 25.0%$1,700-$1,999 14.2% 11.4% 16.8% 20.6% 15.6% 15.3%$2,500 or more 13.7% 7.8% 19.6% 23.3% 15.9% 18.0%

Canterbury has the most diverse housing stock, with 46% of housing stock being “medium density” forms. Sutherland – West is dominated by separate dwellings. Both Hurstville and Sutherland – East, which includes the coastal areas of the shire, have above average proportions of medium density housing.

In terms of household composition, there are distinct differences between Sutherland west and east, with larger family households dominating in the west and a relatively large proportion of single person households in the east. Notably, a high proportion of elderly residents live in the east.

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February 2009

Canterbury has a relatively large rental market, accounting for 38.3% of housing stock (Sydney average 32.5%). All other regions have a lower than average proportion of rental accommodation.

Rent levels in Canterbury are also well below the Sydney average, as are mortgage repayments.

Table 1-3: Demographic Analysis, Household Characteristics, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics



Three LGA Total

Metropolitan Sydney

Household StructureSeparate house 62.4% 53.3% 57.9% 78.5% 62.5% 63.6%Semi-detached / townhouse 12.0% 10.5% 13.1% 9.0% 11.1% 11.8%Units / apartments 25.2% 35.5% 28.5% 12.3% 26.0% 23.9%Other / Not Stated 0.3% 0.6% 0.5% 0.2% 0.4% 0.7%

Household CompositionNumber of persons usually resident: One 23.1% 23.1% 26.1% 16.7% 22.2% 23.1% Two 30.0% 28.3% 34.5% 29.8% 30.6% 31.2% Three or more 47.0% 48.6% 39.4% 53.6% 47.2% 45.7%

Household TypeOne Family Household 73.9% 73.7% 70.4% 81.6% 74.9% 72.7%Lone Person Household 23.1% 23.1% 26.1% 16.7% 22.2% 23.1%Group Household 3.1% 3.2% 3.5% 1.8% 2.9% 4.2%

TenureFully owned 40.0% 34.5% 40.2% 38.8% 38.1% 33.1%Being purchased(b) 30.8% 27.2% 32.7% 44.9% 33.8% 34.4%Rented 29.2% 38.3% 27.1% 16.4% 28.1% 32.5%

Mortgage Repayments$1-$749 10.9% 11.5% 9.0% 10.5% 10.4% 10.4%$750-$1,199 14.6% 18.7% 11.9% 13.6% 14.6% 14.7%$1,200-$1,599 16.1% 19.3% 13.5% 14.7% 15.8% 16.0%$1,600-$1,999 15.9% 14.9% 14.5% 14.6% 14.9% 15.2%$2,000-$2,999 26.7% 23.5% 29.1% 30.4% 27.8% 26.6%$3,000 and over 15.8% 12.2% 21.9% 16.2% 16.5% 17.0%

Rents$0-$99 11.6% 12.5% 9.5% 11.7% 11.5% 11.8%$100-$179 11.3% 29.1% 10.5% 8.3% 18.0% 13.3%$180-$224 20.1% 25.1% 13.7% 9.7% 19.0% 16.0%$225-$349 44.5% 27.2% 43.3% 50.5% 38.0% 36.1%$350-$449 9.2% 4.4% 15.2% 15.2% 9.6% 12.6%$450-$549 1.7% 0.7% 4.4% 2.9% 2.1% 5.0%$550 and over 1.6% 1.1% 3.4% 1.6% 1.8% 5.2%

Number of motor vehicles per dwellingNone 14.9% 19.2% 9.8% 6.1% 12.6% 13.7%1 motor vehicle 43.2% 44.7% 37.8% 30.2% 38.9% 40.1%2 or more motor vehicles 41.9% 36.2% 52.4% 63.7% 48.4% 46.2%

Both Sutherland and Hurstville have average levels of residents in white collar occupations compared with Sydney while Canterbury residents have low levels of white collar occupations. Nearly 40% of Canterbury’s resident workforce are employed in blue collar occupations, including technicians and trades workers, machinery operators and drivers, and labourers.

A relatively high proportion of workers in Hurstville and Canterbury travel to work by train or bus (19.9% and 17.7% respectively). It is noted that both Council areas are well served by heavy rail.

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February 2009

Sutherland Shire residents are less likely to use public transport, with below 10% of residents travelling to work by train or bus.

Sutherland has a higher proportion of residents that state they work from home than either Hurstville or Canterbury, most likely self employed residents.

Table 1-4: Demographic Analysis, Occupation and Travel to Work, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics



Three LGA Total

Metropolitan Sydney

OccupationManagers 11.5% 9.9% 15.1% 13.9% 12.8% 13.5%Professionals 22.5% 17.5% 22.1% 22.1% 21.0% 24.3%Technicians & trades workers 13.7% 15.6% 14.1% 14.7% 14.6% 13.0%Community & personal service workers 8.3% 8.3% 9.2% 8.7% 8.7% 8.2%Clerical & administrative workers 19.5% 16.3% 17.8% 19.9% 18.3% 17.1%Sales workers 9.7% 10.2% 11.1% 10.5% 10.4% 9.7%Machinery operators and drivers 6.3% 9.5% 4.3% 4.3% 6.0% 6.1%Labourers 8.4% 12.7% 6.3% 6.0% 8.2% 8.2%

Upper White Collar 34.0% 27.4% 37.2% 36.0% 33.7% 37.7%Lower White Collar 37.5% 34.8% 38.2% 39.1% 37.5% 35.0%Blue Collar 28.4% 37.8% 24.7% 24.9% 28.8% 27.3%

Method of Travel of WorkTrain/Bus 19.9% 17.7% 7.9% 9.9% 13.2% 13.1%Car, as driver 52.6% 54.0% 60.9% 60.0% 57.4% 54.6%Car, as passenger 5.0% 6.3% 5.0% 4.2% 5.1% 5.4%Motorbike/scooter 0.3% 0.3% 0.5% 0.4% 0.4% 0.5%Bicycle 0.3% 0.3% 0.5% 0.3% 0.4% 0.6%Walked only 3.0% 2.9% 3.3% 1.6% 2.6% 4.3%Other 1.7% 2.4% 2.2% 1.9% 2.1% 2.5%Total one method 82.7% 83.9% 80.4% 78.4% 81.1% 80.9%Two or more methods 0.4% 0.4% 0.3% 0.5% 0.4% 0.5%Worked at home 2.7% 2.2% 4.1% 3.5% 3.2% 4.0%Did not go to work 9.5% 8.3% 11.7% 12.4% 10.6% 9.9%

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February 2009

Figure 1-5: Age Profile, Three LGA Total compared to Metro. Sydney, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

0-4 years

5-14 years

15-19 years

20-24 years

25-34 years

35-44 years

45-54 years

55-64 years

65 years and over

Three LGA Total Metropolitan Sydney

Figure 1-6: Birthplace, Three LGA Total compared to Metro. Sydney, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Australia

Asia

Europe

UK

Other


Figure 1-7: Individual Income, Three LGA Total compared to Metro. Sydney, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Negative/Nil income

$1-$249

$250-$399

$400-$599

$600-$999

$1,000-$1,599

$1,600 or more


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February 2009

Figure 1-8: Household Income, Three LGA Total compared to Metro. Sydney, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Negative/Nil income

$1-$249

$250-$499

$500-$999

$1,000-$1,699

$1,700-$1,999

$2,500 or more


Figure 1-9: Household Structure, Three LGA Total compared to Metro. Sydney, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

One Family Household

Lone Person Household

Group Household


Figure 1-10: Occupation, Three LGA Total compared to Metro. Sydney, 2006 Source: Jones Lang LaSalle, Australian Bureau of Statistics

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Managers

Professionals

Technicians & trades workers

Community & personal service workers

Clerical & administrative workers

Sales workers

Machinery operators and drivers

Labourers


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February 2009

1.3.2 2006 Census – Employee Analysis This section provides analysis of the employees across the three Council regions as at the 2006 Census. Sutherland Shire is broken into its two component Statistical Local Areas (SLAs).

The vast majority of employment opportunities within Sutherland Shire are filled by residents of the same local government area (75%). This is more than double the proportion of jobs in Hurstville (29.9%) and Canterbury (33.7%) that are filled by local residents.

Canterbury draws workers from the broadest region, primarily due to its more central location. Residents of Bankstown, Sutherland, Hurstville and Rockdale are key origin local government areas.

Hurstville also draws significant workers from its neighbouring council areas of Sutherland, Kogarah, Bankstown and Rockdale.

Table 1-5: Origin of Employees within Study Area, 2006 Source: Transport Data Centre, Jones Lang LaSalle

Origin LGA Canterbury Hurstville Sutherland - East

Sutherland - West

Total

Sutherland Shire 1,539 3,113 24,354 16,499 45,505 Canterbury 8,124 1,262 437 189 10,012 Hurstville 1,491 5,871 913 464 8,739 Bankstown 2,831 1,468 485 487 5,271 Rockdale 1,093 1,452 1,136 333 4,014 Kogarah 611 1,901 936 372 3,820 Wollongong 150 306 1,191 1,481 3,128 Liverpool 879 573 337 318 2,107 Campbelltown 611 417 242 206 1,476 Fairfield 612 232 138 88 1,070 Marrickville 620 228 155 66 1,069 Other / Unknown 5,576 2,818 2,334 1,403 12,131 Total 24,137 19,641 32,658 21,906 98,342 Percentages Canterbury Hurstville Sutherland

- East Sutherland

- West Total

Sutherland Shire 6.4% 15.8% 74.6% 75.3% 46.3% Canterbury 33.7% 6.4% 1.3% 0.9% 10.2% Hurstville 6.2% 29.9% 2.8% 2.1% 8.9% Bankstown 11.7% 7.5% 1.5% 2.2% 5.4% Rockdale 4.5% 7.4% 3.5% 1.5% 4.1% Kogarah 2.5% 9.7% 2.9% 1.7% 3.9% Wollongong 0.6% 1.6% 3.6% 6.8% 3.2% Liverpool 3.6% 2.9% 1.0% 1.5% 2.1% Campbelltown 2.5% 2.1% 0.7% 0.9% 1.5% Fairfield 2.5% 1.2% 0.4% 0.4% 1.1% Marrickville 2.6% 1.2% 0.5% 0.3% 1.1% Other / Unknown 23.1% 14.3% 7.1% 6.4% 12.3% Total 100.0% 100.0% 100.0% 100.0% 100.0%

Note: Census 2006 employment numbers are lower than actual total employment numbers due to under-enumeration

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February 2009

Of the 190,652 residents of the study area who stated they were employed as at Census 2006, over 18% were employed in the Sydney local government area and 22.5% were employed in Sutherland Shire (the vast majority being also residents of the Shire).

Other key destinations were Canterbury, Hurstville, Botany Bay, Bankstown, Rockdale and Kogarah.

Sutherland Shire has a relatively high proportion of employment containment, with 40.6% and 36.2% of residents in the east and west of the Shire respectively working locally.

Only 16.1% of Canterbury residents work locally, partly a reflection of the labour force outnumbering the local employment opportunities but also a reflection of its good accessibility to the CBD.

Similarly, only 17.6% of Hurstville residents work locally.

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February 2009

Table 1-6: Destination of Employment for Residents of Study Area, 2006 Source: Transport Data Centre, Jones Lang LaSalle

Employment Destination Canterbury Hurstville Sutherland Shire - East


Grand Total

Sutherland Shire 626 1,377 19,820 21,033 42,856 Sydney 10,491 7,389 7,513 9,338 34,731 Canterbury 8,124 1,491 618 921 11,154 Hurstville 1,262 5,871 1,211 1,902 10,246 Botany Bay 1,627 1,364 2,864 2,680 8,535 Bankstown 2,920 1,593 1,156 2,757 8,426 Rockdale 1,231 1,671 1,703 1,725 6,330 Kogarah 561 1,610 1,826 2,125 6,122 Marrickville 2,541 653 523 569 4,286 Randwick 890 638 947 899 3,374 Parramatta 1,097 577 498 933 3,105 North Sydney 906 682 599 752 2,939 Auburn 1,037 501 497 840 2,875 Liverpool 646 487 612 1,120 2,865 Other Metro. Sydney 9,017 3,842 3,576 4,966 21,401 Other, Unknown 7,404 3,587 4,874 5,542 21,407 Total 50,380 33,333 48,837 58,102 190,652 Percentages Canterbury Hurstville Sutherland

Shire - East Sutherland

Shire - West Grand Total

Sutherland Shire 1.2% 4.1% 40.6% 36.2% 22.5% Sydney 20.8% 22.2% 15.4% 16.1% 18.2% Canterbury 16.1% 4.5% 1.3% 1.6% 5.9% Hurstville 2.5% 17.6% 2.5% 3.3% 5.4% Botany Bay 3.2% 4.1% 5.9% 4.6% 4.5% Bankstown 5.8% 4.8% 2.4% 4.7% 4.4% Rockdale 2.4% 5.0% 3.5% 3.0% 3.3% Kogarah 1.1% 4.8% 3.7% 3.7% 3.2% Marrickville 5.0% 2.0% 1.1% 1.0% 2.2% Randwick 1.8% 1.9% 1.9% 1.5% 1.8% Parramatta 2.2% 1.7% 1.0% 1.6% 1.6% North Sydney 1.8% 2.0% 1.2% 1.3% 1.5% Auburn 2.1% 1.5% 1.0% 1.4% 1.5% Liverpool 1.3% 1.5% 1.3% 1.9% 1.5% Other Metro. Sydney 17.9% 11.5% 7.3% 8.5% 11.2% Other, Unknown 14.7% 10.8% 10.0% 9.5% 11.2% Total 100.0% 100.0% 100.0% 100.0% 100.0%

Comparing the size of the labour force residing in each Council area with the actual employment opportunities provides a guide to the potential to achieve employment containment. Sutherland Shire – East is relatively well supplied with job opportunities, however the western region of the Shire reflects a more typical outer suburban “dormant” suburb, with local job opportunities being less than 38% of total employees living in the region.

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February 2009

Hurstville has a relatively high number of jobs for its population, suggesting good potential for a greater level of containment, although as noted earlier, this hasn’t been achieved.

Table 1-7: Local Employment Base versus Resident Labour Force, 2006 Source: Transport Data Centre, Jones Lang LaSalle

Employment Destination Canterbury Hurstville Sutherland Shire - East


Grand Total

Local Employment 24,137 19,641 32,658 21,906 98,342 Resident Employed Labour Force

50,380 33,333 48,837 58,102 190,652

Proportion Local Jobs to Resident Employees

47.9% 58.9% 66.9% 37.7% 51.6%

Note: Census 2006 employment numbers are lower than actual total employment numbers due to under-enumeration.

The following table compared the skills base of the resident employees with the local jobs in each Council Area. Overall, each Council area appears to provide a reasonably broad skills base, however as noted above, the resident labour force far outnumbers the local job opportunities.

• Canterbury has a higher proportion of blue collar workers resident in the Council area than its employment base. Conversely Sutherland is under-supplied with labourers.

• Sutherland - East and Hurstville have a high proportion of sales jobs compared to its resident labour force. This is due to the location of large shopping centres such as Westfield Miranda and Hurstville.

• Hurstville has a higher proportion of professionals than its employment base.

• Sutherland has a higher proportion of managers and professionals than its employment base

• Canterbury’s resident labour force is under-supplied with managers.

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February 2009

Table 1-8: Skills Base of Residents versus Local Employment Base , 2006 Source: Transport Data Centre, Jones Lang LaSalle

Resident Population Canterbury Hurstville Sutherland - East

Sutherland - West

Total

Managers 9.6% 11.3% 14.9% 13.7% 12.5% Professionals 17.0% 22.0% 21.7% 21.8% 20.5% Technicians And Trades Workers 15.1% 13.4% 13.8% 14.5% 14.3%

Community And Personal Service Workers 8.0% 8.1% 9.1% 8.6% 8.5%

Clerical And Administrative Workers 15.8% 19.0% 17.5% 19.6% 18.0%

Sales Workers 9.9% 9.5% 10.9% 10.3% 10.2% Machinery Operators And Drivers 9.2% 6.2% 4.3% 4.2% 5.9%

Labourers 12.3% 8.2% 6.2% 5.9% 8.1% Inadequately described/Not Stated 3.1% 2.3% 1.7% 1.4% 2.1%

Total 100.0% 100.0% 100.0% 100.0% 100.0%

Workforce Population Canterbury Hurstville Sutherland - East

Sutherland - West Total

Managers 13.0% 12.7% 12.9% 11.2% 12.5% Professionals 17.7% 19.1% 18.0% 22.1% 19.0% Technicians And Trades Workers 14.1% 13.2% 13.8% 14.1% 13.8%

Community And Personal Service Workers 8.6% 9.0% 9.6% 12.1% 9.8%

Clerical And Administrative Workers 14.4% 18.4% 15.1% 16.0% 15.8%

Sales Workers 12.0% 13.6% 16.7% 10.9% 13.6% Machinery Operators And Drivers 9.4% 5.8% 4.6% 4.4% 6.0%

Labourers 9.6% 7.2% 8.5% 8.4% 8.5% Inadequately described/Not Stated 1.3% 1.1% 0.9% 0.8% 0.8%

Total 100.0% 100.0% 100.0% 100.0% 100.0%

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February 2009

In terms of industry of the local employment base, Canterbury has the largest proportion of “industrial type” business employment, accounting for 35.6% of its employment. This is well above the metropolitan average of 28%. Hurstville is in line with the metropolitan average while Sutherland is strong in industrial type businesses in the eastern portion but weak in its western area.

Manufacturing companies is clearly the major industrial use followed by wholesale trade and construction companies.

Table 1-9: Industry of Local Employment Base , 2006 Source: Transport Data Centre, Jones Lang LaSalle

Industry Description Canterbury Hurstville Sutherland - East

Sutherland - West

Metro. Sydney

Agriculture, Forestry & Fishing 0.1% 0.1% 0.2% 0.1% 0.4%Mining 0.0% 0.0% 0.1% 0.1% 0.2%Manufacturing 15.0% 10.1% 13.5% 7.1% 10.1%Electricity, Gas, Water & Waste Services

0.2% 0.6% 0.5% 0.6% 0.9%

Construction 7.3% 6.2% 7.2% 7.6% 5.3%Wholesale Trade 8.2% 7.8% 5.4% 3.1% 5.9%Retail Trade 14.3% 14.4% 19.6% 13.9% 10.9%Accommodation & Food Services 6.4% 6.2% 8.7% 7.1% 6.1%Transport, Postal & Warehousing 4.8% 3.9% 2.5% 3.1% 5.3%Information Media & Telecommunications

0.9% 2.0% 0.7% 0.5% 3.1%

Financial & Insurance Services 1.6% 6.7% 2.9% 2.8% 6.9%Rental, Hiring & Real Estate Services

1.7% 2.3% 2.4% 1.7% 2.0%

Professional, Scientific & Technical Services

3.9% 6.6% 5.6% 10.7% 9.4%

Administrative & Support Services 2.1% 2.7% 2.1% 2.4% 3.2%Public Administration & Safety 6.1% 5.0% 1.9% 7.5% 5.9%Education & Training 8.2% 8.0% 6.5% 12.5% 7.6%Health Care & Social Assistance 12.1% 10.2% 12.7% 11.0% 10.3%Arts & Recreation Services 1.3% 1.4% 1.6% 1.2% 1.5%Other Services 4.8% 4.8% 4.6% 6.0% 3.8%Inadequately described / Not Stated

1.2% 1.0% 1.2% 1.1% 1.3%

Total (Industry Categories) 35.6% 28.6% 29.5% 21.7% 28.0%

1.3.3 Employment by Destination Zone Within the three Council areas, there are 158 employment destination zones. This section provides analysis of the distribution of employment across the study area, in particular industrial employment.

For this analysis, we have assumed industrial employment comprises the following categories:

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• Agriculture, Forestry and Fishing • Mining • Manufacturing • Electricity, Gas, Water and Waste Services • Construction • Wholesale Trade • Transport, Postal and Warehousing

Industrial employment in the study area is concentrated in a relatively small number of precincts comprising 10 of the 158 destination zones. These zones collectively account for approximately 50% of the total industrial employment within the three local government areas.

The main industrial concentrations are listed below:

In Hurstville: • Corner of Forest Road and Boundary Road, Peakhurst /

Mortdale (DZN 637). This area is predominantly manufacturing businesses with construction and wholesale businesses also well represented.

In Canterbury and Hurstville: • Kingsgrove Road, both north and south of the South

Western Motorway (DZN 621, 855) The Hurstville side is predominantly wholesale businesses and the Canterbury side is a mix of wholesale and manufacturing businesses.

In Canterbury: • Corner Bonds Road and South Western Motorway,

Riverwood (DZN 854) Dominated by manufacturing businesses

In Sutherland Shire: • Kurnell (DZN 766, 769)

A mix of industrial businesses but primarily manufacturing, construction and wholesale trade.

• Taren Point Road, Caringbah & Taren Point (DZN 704, 711, 712). A very large concentration of manufacturing businesses as well as significant wholesale and construction businesses. Bulky goods retailing also has a strong presence along Taren Point Road.

• Kirrawee (DZN 705). Primarily manufacturing businesses

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February 2009

The following maps illustrate the distribution of total employment and employment within industries that typically locate in industrial zones across the study area (referred to as “industrial employment”).

Canterbury’s industrial employment is much more dispersed throughout the Council area. While there are only two precincts with over 1,000 employees working in industrial based industries, there are many small precincts throughout the council area with significant industrial employment (in the 200-500 employee range).

Hurstville, on the other hand, has well over 60% of its industrial employment in the Kingsgrove and Peakhurst precincts.

Sutherland’s industrial employment is also quite concentrated in its three key precincts, particularly the eastern region within Kurnell and Caringbah/Taren Point.

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February 2009

Figure 1-11: Total Employment Distribution by Destination Zone, 2006 Source :Transport Data Centre, Jones Lang LaSalle, Pitney Bowse

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Figure 1-12: Proportion of Industrial Employment by Destination Zone, 2006 Source :Transport Data Centre, Jones Lang LaSalle, Pitney Bowse

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Figure 1-13: Total Industrial Employment Distribution by Destination Zone, 2006 Source :Transport Data Centre, Jones Lang LaSalle, Pitney Bowse

Of the industrial employment within the study area, the manufacturing sector dominates the profile. It should be noted, however, that the manufacturing industry sector includes companies who belong to the manufacturing sector but whose activity within the study area may not include actual manufacturing of goods. For example, Toyota at Caringbah belongs to the manufacturing sector but does not carry out manufacturing at this site.

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February 2009

2. INDUSTRIAL EMPLOYMENT & DEMAND

2.1 Economic Overview Industrial property demand has historically been closely linked to Economic growth. This section provides a brief overview and outlook of the New South Wales state economy.

Indicators of activity in the NSW economy including demand, retail sales and the labour market have softened over the past six months under the weight of tight credit conditions and high fuel prices.

State Final Demand (SFD) moderated to 2.7% in the 12 months to June 2008 from 5.1% in December 2007. The slowdown can be attributed to a downturn in household consumption and private investment.

While we have yet to see the effects of a rate cut on retail sales, prior to the cut retail sales declined. A decline of 1.0% was recorded in the June quarter, following a 0.4% decline the previous quarter.

The labour market in NSW has softened, with a 0.2% rise in the unemployment rate to 4.9% in September 2008. The unemployment rate in NSW is now 0.8% higher than the national level.

Table 2-1: New South Wales at a Glance Source: Jones Lang LaSalle, ABS, RBA. *GSP was derived from Access Economics figures.

Indicators Period (y-o-y %)

New South Wales

Australia

Demand Growth (SFD) June 2008 2.7% 4.3%

Economic Growth (GSP*) June 2008 1.8% 2.7%

CPI / Inflation (Sydney) June 2008 4.3% 4.5%

Labour Price Index June 2008 3.9% 4.2%

Retail Sales (seasonally Adjusted)

June 2008 2.6% 2.2%

Total Employment Growth Aug 2008 1.1% 2.3%

Unemployment Rate Aug 2008 4.9% 4.1%

Official Cash Rate As at 12 Sep08 NA 7.00%

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Economic growth forecasts have been downgraded significantly for most world economies, including Australia. Furthermore, the NSW state economy has been performing below the national average since 2002 and is expected to continue this pattern at least over the short term.

As at September 2008, Access Economics forecasts Gross State Product (GSP) in NSW of 1.1% in 2008, 2.0% in 2009 and an average of 2.2% over the five years to 2012. This compares to the national GDP projection of 2.5% for 2008, 2.5% in 2009 and an annual average of 3.0% over the five years to 2012. GSP for NSW is forecast to be lower than the long term annual average over the past 20 years of 2.8%.

The level of slowdown in the national economy is comparable to 2001 rather than 1991 or 1981, i.e. weak growth but not a recession.

The relatively modest population growth in the study area points towards the three council regions mirroring the economic growth of NSW rather than outperforming it. However, the study area is well placed to benefit from increased economic activity associated with the airport and port.

2.2 Industrial Property Trends Over the last few years, both the demand for and supply of Australian industrial property has grown dramatically. The expansion has been far in excess of that indicated by economic growth, a traditional driver of demand for industrial property. The reason for the sudden growth was a structural change in the property needs of industrial space occupiers.

The change in occupier needs was sparked by changes in technology. Mobile communications as well as improved data and inventory management has allowed firms in the transport and storage as well as the wholesale and retail service industries to change their business processes. Changes include outsourcing to specialist logistic firms, consolidation and centralisation of warehousing as well as the adoption of just-in-time inventory management. However, for these changes to be effected, purpose built facilities need to be available at a reasonable cost. A series of land releases in major cities adjacent to new roads allowed for comparative ease in the development of new facilities suitable for the new business processes.

The sudden change in operations is evident in a survey of expenditure conducted by the Australian Bureau of Statistics (ABS). The ABS conducts a survey each December of the planned expenditure over the following 12 months by industries on buildings and structures and plant and equipment. Figure 3.1 shows that planned expenditure by companies in the transport and storage sector leapt by over 220% between 2001 and 2004 as they planned moves to new premises following land releases and road openings. While slow over 2006 to

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2007, the change continues with expenditure in 2008/09 expected to jump by 89% on 2007/08 levels.

Figure 2-1: Transport & logistic sector spending on buildings

Source: Jones Lang LaSalle Research & Consulting, ABS

Expected capital expenditure (buildings, structures, equipment, plant & machinery) over next fiscal year, December Survey.

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1988/89 1991/92 1994/95 1997/98 2000/01 2003/04 2006/07

A$

Mill

ions Structural change in T&L

As well as moving to new premises to improve efficiencies, another structural shift in the use of industrial property has been a change in the nature of Australian manufacturing. Over the last 30 years, manufacturing has gone from approximately 20% of GDP to about 11%. That is, its contribution to the economy has halved as manufacturers have had to cope with increased competition from Asia and until very recently, a strong Australian dollar, with the higher dollar making exports more expensive and imports cheaper. One strategy has been to move production offshore and import products that are either already assembled or may only require light assembly. This has resulted in a shift in some manufacturers’ property requirements from factory to warehouse space.

Transport and logistics companies focusing on reducing costs, reducing travel times and increasing operational efficiencies will continue to seek out markets that offer them lower real estate costs as a proportion of their operating costs. This is likely to favour sites on the fringe of metropolitan areas with good accessibility to key road infrastructure; in Sydney for example, Blacktown, Penrith and Campbelltown LGAs.

In the longer term, the cost of fuel may contribute to an acceleration of the program already underway to shift a greater proportion of freight via rail in an effort to decrease truck movements on congested roads. A structural shift is already underway in the transport industry. In most states, government and industry have already agreed on set targets for

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February 2009

rail; in NSW, the Government and Sydney Ports has a shared objective of achieving a 40 per cent mode share to rail for containers that are transported into and out of Port Botany.

2.3 Sydney Industrial Market The Sydney industrial market is made up of six sub-markets – North, South, Inner West, Outer North West (ONW), Outer Central West (OCW) and Outer South West (OSW). The study area lies within the South sub-market and competes with other locations within the precinct such as Alexandria Seven Hills, Kings Park, Blacktown and Huntingwood. The ONW would also compete with the OCW, which incorporates established industrial precincts (eg. Wetherill Park / Smithfield) and new release areas (eg. Greystanes, Eastern Creek and Erskine Park) – see Figure 4.3.

Figure 2-2: Sydney’s Industrial Precincts Source: Jones Lang LaSalle Research & Consulting

Over the past decade, the supply and demand for industrial land / buildings has been concentrated in the three Outer west sectors, as this is the only region offering large vacant developable land parcels at a relatively low cost. The area has also become more accessible with the completion of the M7 Motorway and construction activity has been spurred by the release of land along the M7 route.

Figure 2.2 shows that over half of industrial construction activity each year has taken place in the three Outer west sectors (based on 10-yr average annual supply – 1998-2007). In the past three years, the

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Outer west’s share of new completions has been as high as 73% indicating solid demand from investors / developers and users, especially in the Outer North West (eg. Arndell Park, Minchinbury, Seven Hills and Huntingwood) and Outer Central West (eg. Wetherill Park, Greystanes, Eastern Creek and Erskine Park).

The supply pipeline in 2008-09 is expected to remain strong, although the downturn in the global financial markets will see some speculative developments delayed.

Figure 2-3: Industrial development activity, Sydney Source: Jones Lang LaSalle Research & Consulting, *As at Q2/2008 (Only includes 5,000sqm+ developments

0

200

400

600

800

1,000

1998 2000 2002 2004 2006 2008* 2010*

Squa

re M

etre

s ('0

00s)

North South Inner WestOuter Central West Outer North West Outer South West

10-yr average

As can be seen, the southern sector has contributed very limited new supply to metropolitan Sydney, due to a relative lack of developable sites. The main areas of new supply in the southern region is around the airport and Port Botany (Botany, Banksmeadow, Matraville, Alexandria).

In the five years between 2004 and 2008, only eight major industrial projects (5,000 sqm and over; excluding bulky goods) have been constructed in the study area, totalling 103,000 sqm of floor area. These developments have typically been aimed at small owner-occupiers and investors, being strata titled developments that have been constructed on a speculative basis for sale. The Riverwood Business Park is different in that it is an institutional project providing leasing opportunities rather than opportunities for the owner-occupier and private investor.

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Table 2-2: Major Construction Activity: Three Council Regions, 2004-2009

Source: Jones Lang LaSalle

Building Name Address Suburb Completion Date

Development Stage

Total GLA (m²)

Owner/Developer

Mangrove Ln Factory Units

8 - 16 Mangrove Ln

Taren Point 2004 Completed 7,200 Camray Nominees Pty Ltd

Forrester St Industrial Units

13-15 Forrester St Kingsgrove 2004 Completed 12,000 Hanan Properties

Riverwood Business Park

92-100 Belmore Rd

Riverwood 2004 Completed 34,700 ING Industrial Fund

Discovery Industrial Estate

10 - 28 Sir Joseph Banks Dr

Kurnell 2005 Completed 12,397 Rosecorp

Taren Point Industrial Estate

7 - 9 Production Rd

Taren Point 2006 Completed 8,700

Box Rd Industrial Development

1 Box Rd Taren Point 2006 Completed 7,000 Altenburg Corporation Pty Ltd

Clerke Place Industrial Development

5-6 Clerke Pl Kurnell 2008 Under Construction

11,562 Caleb Griffiths Pty Ltd

St Albans Rd Industrial Units

16-18 St Albans Rd

Kingsgrove 2008 Under Construction

9,678 Frutex Australia Pty Ltd

Box Road Industrial Complex

3 Box Rd Caringbah 2009 Under Construction

16,000

Captain Cook Drive Development

230-236 Captain Cook Dr

Kurnell 2009 Plans Submitted

14,545 Lipman Pty Ltd

Looking forward, three projects are in the pipeline for completion in 2009, contributing a further 37,600 sqm of industrial floor space to the market.

These modern industrial complexes are typically providing between 10-20% of the total floor area for offices with the balance being functional warehouse / factory space. The higher proportion of office space would suggest greater potential for significant employment generating businesses, as warehousing typically employs very low staff numbers.

2.4 Infrastructure Investment Infrastructure investment is a key consideration for the location of industry.

Economic and population growth places demands on infrastructure and budget surpluses allow greater scope to invest in infrastructure. Not surprisingly, the greatest infrastructure spending is occurring in the high growth states of Queensland and Western Australia.

Key infrastructure, both existing and proposed, that influences the location of industry across the study area includes the following:

• Sydney Airport • Port Botany • Proposed Enfield Intermodal Logistics Centre

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• M5 Motorway

Sydney Airport is the air freight gateway to Australia, handling 50% of international airfreight traffic and 30% of domestic volumes. Compared to land and sea freight, air freight is expensive and dominated by perishables, high value manufactured goods and mail.

Within a 5km radius of the airport there are 150 forwarders and integrators. Many of these groups would be located in industrial zones. The key industrial areas in the study area of Kingsgrove and Riverwood are between 7 and 11 km from the airport freight terminal.

Sydney Airport throughput is expected to grow from 500,000 tonnes in 2004-05 to 1.3 million tonnes by 2023/24.

It should also be noted that the Sydney Airport is a major employer, with over 60,000 people directly employed in airport related activities.

Port Botany is Metropolitan Sydney’s ’s major port facility. Long-term forecasts prepared by the BTRE (2006) suggest that container throughput at Port Botany will double to three million TEU (twenty foot equivalent units) by 2021.

The Port is set to undergo expansion by 2011 to provide sufficient container handling capacity for the next 20 years. Most of the freight movements generated by the Port have an origin or destination in the outer south-western and outer western industrial areas. Much of this traffic would use the M5 motorway.

This strong growth of trade through both Port Botany and Sydney Airport will contribute to a rapid increase in the freight task, placing pressures for improved road and rail infrastructure linking to the ports and increased demand for well located industrial land by companies associated with the freight task.

Industrial zones located in close proximity to the M5 corridor are strategically placed to capitalise on both their proximity to the Port of Botany, access to quality road infrastructure and forecast demand. Kingsgrove, for example, is only 15km from the Port.

Enfield Intermodal Logistics Centre is being proposed by Sydney Ports at the former Enfield Marshalling Yards, near Strathfield. The facility is aimed at taking pressure off Port Botany and reducing truck movements to Port Botany by diverting more freight into the Port to rail. The idea is for importers and exporters who are located in the western suburbs, including those located in the study area along the M5 corridor, to use Enfield essentially as an “inland port”, delivering goods for export and collecting imported products. Such a facility is likely to increase demand for industrial land by importers and exporters in industrial precincts such as Kingsgrove and Riverwood as well as smaller precincts such as Punchbowl Road, directly south of the subject site.

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Existing use of industrial land for container storage in the study area may relocate to Enfield, which would have provision for such low intensity industrial use, thus freeing up industrial land for more intensive use.

The M5 South-West Freeway provides a direct route from the airport and Port of Botany to Casula, in Sydney’s west, where it links with the South Western Freeway (Hume Highway) and Westlink M7. It opened in 1992 and is owned and operated by Interlink. Access to this critical link between the ports and major industrial areas of western and south-western Sydney is a major factor influencing the location of companies. Industrial zoned land within the study area adjacent to the Freeway includes Kingsgrove and Riverwood.

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2.5 Employment Lands Review The employment lands precincts were identified in the South Subregion Draft Subregional Strategy. This identified 13 precincts in Canterbury covering 173.8 Hectares, five in Hurstville covering 86.4 Hectares and seven in Sutherland covering 237.5 Hectares.

Of these precincts, all but three, located in Canterbury and comprising nine Hectares, were considered to be land to be retained for industrial purposes. The three small precincts at Canterbury Road, Wiley Park (1 Ha); Burwood Road, Belmore (5 Ha); and Canterbury Road, Campsie (3 Ha) were considered more appropriate for a mix of uses under a business zoning.

Field work of the major industrial zones was undertaken to review the mix of uses, their economic relevance and importance as industrial areas. This field work was complemented by discussions with Jones Lang LaSalle’s industrial sales and leasing agents and national industrial analyst, together with our monitoring of new supply within the study area and demand for industrial space.

The results of this assessment is summarised in the following tables. The location of all industrial zones in the study area together with a review of the planning instruments covering these zones is presented in Section 3.

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February 2009

Table 2-3: Major Industrial Zones in Study Area, Part 1 Source: Jones Lang LaSalle

Menai ANSTO Burns Road, Heathcote

Kirrawee

Address Old Illawarra Road New Illawarra Road, Lucas Heights

Corner, Burns Road and Princes Highway, Heathcote

Princes Hwy, Waratah Street, Bath Road

Size (HA) 4.0 N.A. 3.5 47.5 Key Industries Auto, Service Retail,

Local Focus High Tech, Nuclear medicine

Service industries, landscape supplies, timber sales, manufacturing

Auto showrooms and service, self storage, service industries, engineering, manufacturing, office/warehouse

Key Companies

Menai Homemakers Centre; Autoplaza; Menai Services Centre; Menai Trades Centre

Australian Nuclear Science and Technology Organisation; Cyclomedica; PETNET; Lucas Heights Tech. Park

Conveying Equipment Manufacturers

Bath Road Works Depot, Bunnings (u/c), PPK, Auto Plaza, Major car yards on Princes Highway

Lot Sizes Large allotments developed as small units

Large Medium but redevelopments for smaller strata units

Large

Age & Quality Modern - 10 years Modern, high quality and well maintained

Mixed. Some new development

Mixed with some sites ready for redevelopment

Redevelopment Potential

Low High Under-utilised sites to south of Burns Road

Relatively high. Bunnings is taking up the major one

Viability Viable for local services. Low vacancies

Strong - relies on Australian Government support

Only industrial area of note in Heathcote

High

Residential Interface

Residential to the south but good separation

None Residential to north. Some conflict with truck movements

Poor. Residential leading off industrial streets or opposite industrial uses.

Strategic Importance

Low from a regional perspective. Important locally.

Very high Low-medium High

Accessibility Good OK. Purposely remote but good road access.

OK but speed of traffic on Princes Hwy makes accessing area difficult

Good from Princes Highway and Waratah Street.

Key Infrastructure

Major Road frontage. Near intersection of Alfords Point Road and Menai Road.

New Illawarra Road; Heathcote Road

Princes Hwy. Near rail line but not near station

Near rail. Princes Hwy

Other/Ancillary Uses

Opposite Menai Central. Short walk to Menai Market Place

Café; Motel; Visitors Centre; recreation facilities

N.A. Bunnings, Café

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February 2009


Taren Point/Caringbah

Kurnell Harp Street, Belmore/Campsie

Lakemba Street, Belmore

Address Taren Point Road, Captain Cook Drive

Captain Cook Drive Harp Street Lakemba Street

Size (HA) 120.0 166.0 30.0 3.5 Key Industries Manufacturing,

Engineering, Bulky Goods, Office/Warehouse, wholesale distribution

Oil Refining Mixed local service industries.

Local Industry, mixed business, local, auto

Key Companies

Toyota, Players Biscuits, AAMI, Chemcorp, Bunnings, Harvey Norman, HKL Global Solutions, Leutenegger

Caltex, Desalination Plant, Boral, Continental Carbon Australia

Mitre 10. Pickles Auctions, Former Sunbeam site

SEC Plating

Lot Sizes Large Large Major sites as noted above but most other sites small

Small to medium

Age & Quality Some new high quality development. Some with large office component

Mixed with some new development getting underway

Mostly old stock old, poor


Yes - 3BoxRoad. Other large sites for redevelopment

High. Commencing further west of Caltex along southern side of Captain Cook Drive

Sunbeam site and longer term - Pickles site

Limited

Viability High High Questionable particularly for Sunbeam site due to interface with residential uses

Likely to be some pressure from residential over the medium term


Some residential within industrial area

Residential township is quite separate -

Poor - at times residential uses opposite industry.

To the south


High. High, although primarily the site for Caltex (and now desalination plant)

Not as high as other zones but still a relatively large and important employment area

Low - local importance only

Accessibility Good, Main Road frontages and wide internal roads

OK but isolated Average. Alfred St and Elizabeth St double for residential access

Lakemba Street

Key Infrastructure

Taren Point Road, Captain Cook Drive

Port facilities? Captain Cook Drive

N.A. Rail nearby


Bulky goods / showrooms to Taren Point Road. Food outlets

Near important historic site (Cook's landing). Minor services within township

Mitre 10 at interface with Canterbury Rd

Tae Kwon Do

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February 2009


Lakemba Moxon Road,

Punchbowl Wiggs Road, Riverwood

Bonds Road, Riverwood

Address Punchbowl Road Corner Canterbury Road and Moxon Road

Wiggs Road Between Bonds and Belmore Roads; South of Canterbury Road; North of M5

Size (HA) 12.0 15.5 6.0 49.0 Key Industries Storage, local

manufacturing, service industries

Small factory units, local industries, engineering, auto, mixed

Manufacturing, printing, electronics, fencing, plating

Regional uses, manufacturing, wholesaling, trade supplies

Key Companies Astor Base Metals, Kennards

Punchbowl Industrial Complex, Bankstown Business Park

Hills, York Precision Plastics

Spicers Paper, Riverwood Business Park, Patti's Hire, Austral Pavers

Lot Sizes Some large sites Some quite large Mixed Very large

Age & Quality Old, Run down Old & run down Old, no landscaping, relatively poor quality

Mixed. Good landscaping for new developments. Parking on site


Yes Yes - vacant sites and under-utilised sites

Minor - appears mostly strata properties

Strong - old sites are being redeveloped

Viability Given main road frontage, it should be good.

Medium Medium High


Poor with some streets having residential on opposite side of road

On eastern side of Moxon Road. Poor interface

Very poor, especially off Bell St to Scholefield St. Undergoing residential redevelopment is some areas

Poor on Belmore Rd (west side is residential). To north on Bonds Rd - which has a lot of heavy traffic


Medium Medium - but site adjoins other industrial areas

Medium High

Accessibility Good for main road frontage but internally the narrow streets do not assist

Moxon Rd - running off Canterbury Rd and Wiggs Rd (off Belmore Rd). Reasonable

Wiggs Rd - off Belmore. OK for local companies without too much heavy traffic.

OK

Key Infrastructure

Major road Close to M5 intersection with Fairford Rd

Near M5 Motorway, Riverwood - major industrial precinct nearby

M5 and Canterbury Rd


Islamic centre nearby

Near McLaughlin Oval, Officeworks (Canterbury Rd)

Near McLaughlin Oval. Other recreational facilities. Cafes

Some showrooms and trade supplies. Cafes

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February 2009


Peakhurst Kingsgrove South Kingsgrove Chapel Street, Roselands

Address Boundary Rd, Lorainne St, Roberts Ave

Vanessa Street, The Crescent, Kingsgrove

Kingsgrove Road, Moorefields Road, Gareema Circuit

Chapel Street, Roselands

Size (HA) 54.0 26.0 35.0 7.0 Key Industries Mixed small

manufacturing, trades, wholesaling, small business

Large manufacturing, corporate office/ warehouses

Office/warehousing, small business - mixed, some manufacturing, service trades

Council Depot, Wholesalers, Service Trades, Small manufacturers

Key Companies Ace Gutters, Council Depot, Sub Station,

Allied Mills, Air Grilles, Sony, Tyco Electrical, SEMA, EBOS, Goldwell, Epic Stone

Sydney Buses, Domus Lighting, DouweEgbert, Sara Lee, Skye, Timken, Pacific Brands, Protex, Yakka

Décor Tiles, A&H Trading, Canterbury Council Works Depot

Lot Sizes Large lots developed for small units

Large Large off Forrester Road; small elsewhere

Small (except Council Depot)

Age & Quality Poor Mixed with some modern quality development

Mixed Older stock


Limited by small size of allotments

High - under-utilised sites

Yes - Long term. Sydney Bus Depot, High School). Older under-utilised sites

Minor

Viability Yes but secondary in nature

High with good access

High Medium - secondary industrial area


Poor in parts with residential opposite industry

Minimal. Residential across park from industrial

Very poor in some areas - Forrester road and St Albans Road (and streets running off these)

Residential on east side of Chapel Street - poor


High due to size of zoned industrial land

High High Low

Accessibility Boundary and Forest Roads as well as internal road. OK but not for larger vehicles

Good access. Relatively wide road

OK - Some internal roads are not particularly wide. Served by main roads

Chapel St - takes a lot of traffic for a relatively minor street - not suited to large trucks

Key Infrastructure

Near M5, railway station

M5 nearby, Kingsgrove Rail Station

M5


Plants Plus, Council Depot, St George Maso's, bulky goods (minor), Mitre 10, Cafes, Health Centre, IGA, Peakhurst Inn.

Near business uses on Kingsgrove Road

Parks (Clemton Park), Kingsgrove High School, Café

Wholesale Nuts - Sales direct to public, creating considerable traffic. Park nearby

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February 2009

Further comments on key industrial zones in the study area follow:

Kurnell has struggled to attract development as it is viewed as being too isolated from the main industrial precincts of Taren Point and Caringbah. The negative perception of Kurnell is considered to be due to its perceived isolation as well as it being seen as a location for heavy industry, due to the location of Caltex and Continental Carbon.

More recently, “push and pull” factors have seen an increase in demand for industrial property in Kurnell. As a result of the lack of development opportunities in traditional industrial locations such as Taren Point / Caringbah as well as difficulty in accessing quality buildings in the core traditional areas, many companies are now willing to consider Kurnell as a possible location. The pull factor is simply the lower land cost advantage of locating in Kurnell.

The growth in land values in Taren Point / Caringbah plus the lack of land has pulled the prices of land in Kurnell along, whereby we may start to see in the short term (1-2 years) a more rapid rate of growth in values for Kurnell.

There is no doubt that Kurnell offers significant medium term opportunities for further industrial development, due to its cost advantage and lack of other new land releases in the south. Due to the fragile environment of the peninsula, industrial development will need to have low impact on the surrounding environment.

Taren Point/Caringbah has seen exponential growth over the last 5-7 years, with the rate of growth in capital values now likely to slow. The lack of amenity and services for workers is a continued issue in these older industrial areas, with newer industrial subdivisions raising the bar considerably. Just as the quality of the work place has become an important factor for office based companies, industrial uses are looking for improved amenities and services as a means of attracting and retaining staff.

Demand for bulky goods premises along both Taren Point Road and Captain Cook Drive is expected to continue, with a premium price expected for this valuable main road frontage. As discussed in Section 2.7, new players within the bulky goods sector and expansion by nation chains is creating further demand in this sector and unlike some regions of Sydney, there appears to be an under-supply of quality bulky goods space in the overall study area.

Several larger tracts of land in Taren Point / Caringbah remain to be unlocked, and are likely to come to market within 3 years as small lot land subdivisions, catering for mainly the local owner occupier market. Taren Point/Caringbah is driven by relatively high net worth owner-occupiers who live within a 10km radius. These occupiers provide valuable local employment opportunities to residents of the Sutherland Shire.

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Kirrawee is a very local industrial market catering for relatively small occupiers. There is considered to be room for further gentrification as many larger older manufacturers give way to newer strata style development. Recent redevelopment of the Ingal Civil Industrial Galvanisers site for the new Bunnings will create a substantial knock on affect for similar/complementary uses, feeding off the Bunnings patronage.

Demand remains very strong from small users within Kirrawee, a reflection of the lack of other appropriately zoned locations for local businesses such as service trades.

Bonds Road, Riverwood has the advantage of being located adjacent to the M5, although the lack of southern access to the M5 is an issue (exit in one direction only). Solid demand for industrial property is coming from airport related and other central located businesses, with the precinct seen as a lower cost alternative to South Sydney (Alexandria). It is therefore providing opportunities for companies to decentralise without needing to go to the outer-west or south-western industrial areas. The proximity to residential development is not ideal.

Peakhurst/Mortdale is considered very much a secondary industrial precinct, characterised by a mix of conflicting land uses, fragmented ownership which makes redevelopment difficult, and local owner-occupiers and investors rather than institutional investors. Smash repairers and other service trade premises as well as small manufacturers dominate. It provides primarily a local and sub-regional service role for the local population.

Kingsgrove has similar advantages to Bonds Road, Riverwood in that it is the first port of call heading out from the Airport along the M5. It does, however, have better motorway access than Riverwood. The southern portion of the precinct has the added advantage of good railway access for staff.

Kingsgrove has attracted a range of mid to large owner occupiers as well as a mix of high net worth private and institutional investors.

In summary, the M5 plays a major role in the demand for property in areas such as Kingsgrove and Riverwood, although accessibility from the south is an issue. Proximity to the airport and the cost advantage over locations such as Alexandria and Botany also influence demand for industrial property in the northern part of the study area. Kurnell is expected to see greater interest with its cost advantage and potential for new land releases critical “pull” factors. Finally, poor amenity is an issue in many of the industrial precincts, and while some local service trade companies may be less influenced by such factors, issues such as services and facilities, public transport access, on-site parking, landscaping and presentation of the industrial units are critical in a competitive industrial property market.

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Harp Street, Belmore/Campsie The Sunbeam site has been the subject of considerable debate in recent years. The draft subregional strategy recommends that the site, which is approximately 4.3 Hectares, should be retained for industrial purposes. There has been considerable pressure for the site to be redeveloped for a mix of uses, including residential and retail uses. A Stage 1 development application is currently being assessed by the NSW Department of Planning as a major project. The project comprises the following 5 stages:

• A 30,117sqm bulky goods and commercial development

• Multiple unit housing (58 units) and child care centre

• A supermarket anchored shopping centre (5,336sqm), medical centre 3,719sqm) and dwellings (214 units)

• Multi unit housing (64 units)

• Multi unit housing, including seniors living (59 independent living units)

• The site is surrounded on three sides by residential uses, which has added to the pressure for a change of use.

In terms of economic contribution, Macroplan has indicated the project will generate 1,497 employees.2 This is 3 times the target employment growth within Canterbury over the next 20-25 years. This appears relatively high, and is based on ratios of employment to floor space of 1employee:22sqm for retail, 1:15 for commercial and 1:43 for bulky goods retail.

2 Macroplan (23 April 2009), from Preferred Project Report, Worley Parsons

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2.6 Employment Projections The NSW Department of Planning’s 2005 City of Cities Metropolitan Strategy set out a 25-year vision for Sydney, with an expected addition of 1.1 million people, 640,000 new homes and 500,000 new jobs by 2031. It links into the draft Sub-regional Strategy for the South Sub-region, one of the ten sub-regional strategies, which covers Sutherland, Hurstville, Canterbury Kogarah, Marrickville and Rockdale LGAs. These targets in Table 2.5 are a guide as they are based on 2001 / 2004 data and yet to be reviewed / updated based on 2006 Census (this is expected to be completed by end 2008).

Table 2-7: Metropolitan Strategy dwelling and job targets Source: Jones Lang LaSalle Research & Consulting, NSW Department of Planning

Sub-region Dwellings

2004 Dwellings

2031 Additional dwellings

% of total

Jobs 2001

Jobs 2031

Additional jobs

% of total

East 122,000 142,000 20,000 3% 130,000 155,000 25,000 5%

North East 90,000 107,300 17,300 3% 83,000 102,500 19,500 4%

Inner North 129,000 159,000 30,000 5% 228,000 288,000 60,000 11%

North 88,000 109,000 21,000 3% 79,000 92,500 13,500 3%

South 248,600 283,600 35,000 6% 185,500 214,500 29,000 5%

South West 129,000 284,000 155,000 24% 119,500 208,500 89,000 17%

North West 251,000 391,000 140,000 22% 237,000 367,000 130,000 25%

West Central 228,500 324,000 95,500 15% 308,500 369,500 61,000 12%

Central Coast 139,000 175,000 36,000 6% 94,000 129,300 35,300 7%

Inner West Draft pending 30,000 5% Draft pending 10,000 2%

City of Sydney Draft pending 55,000 9% Draft pending 58,000 11%

TOTAL 634,800 530,300

Note: The South Sub-region includes Sutherland, Hurstville and Canterbury as well as Kogarah, Marrickville and Rockdale.

While the south is one of the larger regions in terms of population and dwelling numbers, its forecast employment targets are relatively small, accounting for just 5% of the metropolitan total.

Given both the economic advantages of increased business activity as well as improved employment opportunities for the resident labour force, achieving higher than targeted jobs creation would generally be seen as a positive outcome.

Based on state government forecasts, the three Council region is projected to see modest employment growth of just 13,700 between 2001 and 2031, or 0.4% per annum. This compares with 0.9% per

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annum growth in employment across the Sydney metropolitan area between 2006 and 2031.3

The majority of employment growth in the study area is expected to occur in the Sutherland Shire (10,549) with just 247 additional employees in Canterbury and 2,890 in Hurstville

It should also be noted that these projections do not take into account the potential impact the global financial markets meltdown may have on employment growth, particularly in the Sydney CBD, which is more exposed to financial markets than both other capital cities and other parts of the metropolitan area.

Table 2-8: Employment levels, growth rates and forecasts Source: Jones Lang LaSalle Research & Consulting, NSW Ministry of Transport – projections as at November 2006

Employment (No.)

Area 2001 2006 (f) 2011 (f) 2016 (f) 2021(f) 2026(f) 2031(f)

Canterbury 30,659 32,198 32,615 32,472 31,974 31,409 30,906

Hurstville 23,453 25,059 25,884 26,261 26,428 26,421 26,343

Sutherland Shire - East

37,560 40,048 41,371 42,141 42,638 42,891 43,032


24,837 26,742 27,963 28,710 29,247 29,613 29,914

Study area 116,509 124,047 127,833 129,584 130,287 130,334 130,195

Sydney SD 2,285,962 2,488,000 2,636,000 2,752,000 2,841,000 2,905,000 2,953,000

% Growth (per annum)

2001-2006

2006-11 2011-16 2016-21 2021-26 2026-31

Canterbury 1.0% 0.3% -0.1% -0.3% -0.4% -0.3% 1.0%

Hurstville 1.3% 0.6% 0.3% 0.1% 0.0% -0.1% 1.3%

Sutherland Shire - East

1.3% 0.7% 0.4% 0.2% 0.1% 0.1% 1.3%


1.5% 0.9% 0.5% 0.4% 0.2% 0.2% 1.5%

Study area 1.3% 0.6% 0.3% 0.1% 0.0% 0.0% 1.3%

Sydney SD 1.7% 1.2% 0.9% 0.6% 0.4% 0.3% 1.7%

Note: (f) is forecast numbers as per NSW Ministry of Transport projections

3 Forecasts are proposed to be updated by December 2008, with 2006 being the base year.

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Employment in sectors that are likely traditional occupiers of industrial space is forecast to decline substantially between 2001 and 2031 (see Table below). The continued trend of taking manufacturing off-shore as well as greater automation is likely to see manufacturing diminish in terms of local employment numbers. In the transport and storage sector, structural change in favour of larger facilities on the fringe of metropolitan areas and in close proximity to the main interstate truck and rail routes is likely to see strong growth in local government areas such as Blacktown, Campbelltown and Penrith at the expense of inner and middle suburban locations. Strong growth in this sector, however, is also expected adjoining the port and airport in the City of Botany Bay.

Table 2-9: Employment Forecasts – Selected Employment Zone Industries, Three Council Area

Source: Jones Lang LaSalle Research & Consulting, NSW Ministry of Transport – projections as at November 2006

2001 2006 2031 Change, 2001-31

Agriculture/Mining 320 352 537 217Manufacturing 17,014 16,981 13,612 -3,402Energy, water, sewerage 214 201 150 -64Construction 8,155 8,735 8,046 -109Wholesaling 7,004 6,843 7,541 537Transport and storage 3,641 3,580 1,561 -2,080Total - Selected Industries 36,348 36,692 31,447 -4,901Total - All Industries 116,509 124,047 130,195 13,686

The major employment growth sectors are expected to be retailing and property and business services, which combined are expected to contribute an additional 15,262 jobs to the study area between 2001 and 2031, more than the total growth in new jobs. Many of these jobs are likely to be created outside the existing industry / employment zones, notably in designated major centres and town centres.

Assuming that the respective councils wish to see a similar number of employment opportunities provided in existing industry / employment zones, it is likely that changes to the industry mix within these zones may need to be considered. This may include some retail / showroom uses on main road frontages, or business uses in integrated, modern business parks.

We would also expect “back office” and warehousing requirements for many businesses within the property and business sector as well as retailing sector will be major areas of growth.

We consider that the proximity of some industry zones to the airport and port as well as key transport infrastructure such as the M5 suggests there should be strong demand for businesses associated with importing, exporting and distributing goods.

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It is noted that the manufacturing sector can be quite labour intensive in terms of employment per Hectare of industrial land compared to, say wholesaling and Transport and storage. This suggests that while employment may be lost from employment lands, the demand for land may be strong, with the future mix of uses within employment zones yielding lower employment numbers per Hectare.

It should also be noted that the employment breakdown presented in this section is by industry sector rather than land use. For example, the large Toyota facility at Caringbah would be considered part of the manufacturing sector, (Toyota being a car manufacturer) despite no actual manufacturing occurring on site. Likewise, a warehouse operated by a retailer would be part of the retailing sector.

Table 2-10: Employment Forecasts – Selected Growth Sectors, Three Council Area

Source: Jones Lang LaSalle Research & Consulting, NSW Ministry of Transport – projections as at November 2006

Industry Sector 2001 2006 2031 Change, 2001-31

Retailing 23,364 25,948 31,659 8,295 Property and business services 12,792 14,331 19,759 6,967 Education 8,426 9,042 9,088 662 Health services 8,434 9,193 10,396 1,962 Cultural and recreational services 2,487 2,976 3,781 1,294 Accommodation, restaurants, cafes, clubs 5,611 6,442 7,869 2,258 Personal and other services 4,740 5,178 5,105 365 Total - Selected Growth Sectors 65,854 73,110 87,657 21,803

2.7 Implications for the Study Area The employment forecasts reflect the structural changes that are occurring across Australia’s labour markets and affecting demand for property in employment / industrial zones.

The loss of manufacturing jobs will be difficult to prevent at a local level. What is critical is ensuring that disused factory space is redeveloped for productive purposes.

It may not be economically viable to redevelop inner and middle suburban industrial areas for transport and storage purposes – the trend in this sector is for larger premises on the outskirts of metropolitan areas, where land values are low and accessibility to the national road and rail network is good. However, distribution facilities for high value goods requiring smaller premises may choose a more central location such as Hurstville or Canterbury.

With the continued move towards a service based economy, some employment lands may be adapted for alternative employment generating uses. Such uses are likely to be more employee intensive

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and better reflect the local employment base, providing higher levels of professional, management and administrative employment.

Business park locations such as Macquarie Park, Norwest Business Park and Homebush Bay / Rhodes have attracted companies in the Communication Services, Property & Business Services and Health & Community Services sectors. These sectors are forecast to see stronger employment growth in the study area than traditional industrial land uses. It is noted that the inner north, inner west and north-west have all benefited from successful business park development, but no such product has been offered in the southern Sydney region.

The emergence of fringe and suburban office locations as well as an increase in office space within industrial developments and business parks has attracted some firms to move out of the CBD. For some sectors, a CBD location is not a critical success factor and can even be a disadvantage. Attractions of a non CBD location include the following:

• Cost effectiveness;

• Availability of affordable car parking;

• Access to a large number of sites;

• Proximity to centre of operations;

• Proximity to workforce;

• Custom-designed buildings.

In order to compete for employment opportunities, the southern metropolitan area will need to provide quality suburban office locations. This should provide a mix of opportunities, including town centre based office development and business park development.

Finally, the existing land fragmentation within the industrial zones throughout the study area will create a constraint to redevelopment, particularly in the short term, as may inappropriate uses. Government may need to consider strategies to help unlock the potential of land that is fragmented and currently under-utilised, including assistance to relocate businesses that may prevent viable redevelopment from occurring.

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2.8 Bulky goods zones

2.8.1 Overview Bulky goods retailing refers to the sale of high-bulk goods such as furniture, electrical goods, hardware items and garden supplies and includes free-standing showrooms such as Bunnings and Officeworks and multi-tenanted ‘homemaker centres’.

The bulky goods sector has enjoyed a lengthy period of unprecedented growth in supply, with over 2.6 million sqm of floor space built over the past decade across Australia’s major markets. This growth has continued despite a more subdued housing sector and concerns of oversupply emerging in the past three years. Aggressive expansion plans of major retailers, increasing appeal of stores due to new product ranges, new store concepts and increasing affordability of many household goods have all contributed to the growth.

2.8.2 Supply Drivers The aggressive expansion strategies of major bulky goods retailers in building their market share have fuelled the growth of this sector. Key tenants include Bunnings and Harvey Norman, while other major players include The Good Guys, Spotlight, Officeworks, Freedom and JB Hi-Fi.

This trend is likely to persist. Compared to other retail sectors, most notably the supermarket and department store sectors, much of the bulky goods sector is still relatively fragmented. This suggests that key retailers will be keen to consolidate their market position and grow their market share, both via store roll-out programmes and merger and acquisition activities.

The size of individual retailers has also increased significantly. Bunnings Warehouse stores are typically over 10,000 square metres while Harvey Norman stores are typically between 6,000 and 10,000 square metres in size.

While new shopping centre developments are largely restricted to existing retail centre zones, planning regulations have generally been more flexible for bulky goods stores, realising the difficulty in providing adequate sized sites in existing town centres for larger format stores.

2.8.3 Demand Drivers Strong growth in housing construction supports solid retail spending. In particular, sales of furniture and floor coverings have followed a similar pattern to that of residential completions. Spending on these goods has eased recently due to the downturn in the housing sector, which began in 2003 along the eastern states and particularly in New South Wales.

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The high value of the Australian dollar for much of the past four years has helped to reduce import prices of home entertainment systems and computers; and this has increased demand. These sub-sectors have also benefited from advances in technology and significant drops in prices of items such as DVD players and flat panel televisions.

The relatively high rate of household formation, due in part to the continued growth in single person households as well as the baby boomer generation reaching retirement and “down-sizing”, has also been a driver of bulky goods demand. Each new household provides demand for major household items (appliances, furniture and floor coverings) while boomers downsizing will often trade in their old furniture and appliances for new items.

While sales of household goods has been affected by a weak housing sector, there is no denying that the household goods sector, which comprises the majority of bulky goods retailers, has been the key growth sector in retailing for much of the past 10 years. In New South Wales, this growth continued until very recently despite the weakening housing sector.

Figure 2-4: Household Goods Turnover Growth in NSW, June 2003-June 2008

Source: Jones Lang LaSalle, Australian Bureau of Statistics

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08

Month

ly Ch

ange

(%)

Monthly Change (Trend)

2.8.4 Development Trends From Homemaker to Lifestyle As the sector matures, bulky goods centres are providing a more diverse mix of tenants. Along with the traditional furniture, electrical and white goods retailers, it is not uncommon to now see pet food/accessories suppliers, sporting goods, party supplies, pharmaceuticals, fitness centres, nursery supplies, storage solutions and toy stores now being incorporated within centres.

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Larger Centres Developers are moving towards larger homemaker centres. Five years ago, a centre of 20,000 square metres was considered large. It is now common for centres of well over 30,000 square metres. Recent developments have pushed the boundaries even further, with centres of 50,000 squares metres and over now on the drawing boards in most metropolitan markets. For example, the completion in August 2007 of extensions to the Hills Homemaker Centre in Sydney increased the centre's total size to 55,000 square metres.

High End Centres As the sector matures, a market for high end centres has emerged, with some centres rivalling major regional and sub-regional centres in terms of quality and design. The Homemakers Supa Centa in Belrose, for example is a fully enclosed bulky goods centre over five levels featuring generous public space, quality shop fronts and ancillary services for customers such as food options and a kids’ play area.

Location Requirements The core retail goods that are sold through bulky goods centres, namely furniture, major electrical goods, hardware, garden supplies and camping goods, have typically accounted for a very low proportion of sales within town centres. This is not a recent phenomenon – furniture and electrical stores have long been developed along arterial roads.

In this regard, bulky goods retailers locating outside of town centre zones have very limited economic impact on the trading levels within town centres. This is because bulky goods retailers do not directly compete with the vast majority of retailers within town centres.

Large format bulky goods retailers typically sell “bulky items” and their specific requirements tend to preclude them from locating either in traditional shopping centres or the retail cores of town centres. A list of typical requirements for a bulky goods retailer are below.

• High visibility with main road frontage • Good accessibility • Ample Parking • Large level site • Loading / unloading facilities for transporting of bulky

purchases • A range of complementary retailers providing

comparison shopping opportunities

Access by public transport to bulky goods precincts is rarely used by bulky goods customers. Firstly a car is typically used to transport the purchases home (or home delivery is arranged) and secondly, the

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busy times for bulky goods centres are weekends, which coincides with poorer public transport services.

There is a move towards larger, integrated centres, which allow for comparison shopping across a range of household goods and accommodate the large floor plates desired by the retailers. This has seen most successful bulky goods centres / precincts providing at least 30,000 square metres of floor area. Larger centres also have the advantage of providing a “one stop shop” for all household goods, potentially minimising shopping trips.

2.8.5 Planning Policy Issues The Metropolitan Strategy gives guidance as to the future location of bulky goods uses and retailing generally. The South Subregion Draft SubRegional Strategy 2006 – 2031 emphasises that retailing, including bulky goods, should be located in centres, “business development zones” and “enterprise corridors”. This is a change in previous policy, where bulky goods retailing competed with industrial uses in light industry zones. This practice is now discouraged in order to protect industrial land for industrial uses. The aim now is to consolidate existing clusters of bulky goods and locate new bulky goods either within ‘centres zones’, most likely on the periphery of core retail activity, or in ‘business development zones’.

In 2001, the New South Wales state government released State Environmental Planning Policy 66 (SEPP 66) – ‘Integrating Land Use and Transport: The Right Place for Business and Services’. This policy advocates a series of tests to justify the development of bulky goods retailing, including the following:

• the economic and social impacts on existing and planned centres

• the demand for the amount of floor space for trading bulky goods and the potential impact any oversupply would have on existing centres

Issues specific to the southern region includes the development of non-aviation related uses such as bulky goods on land at Sydney Airport (and nearby Bankstown Airport).

The Draft Subregional Strategy states that the:

“Business Development Zone has been created in the LEP template to assist in planning for the transition of areas or centres from underutilised areas to commercial core or other activities over time. This may be appropriate for Hurstville and potentially Sutherland for smaller centres in Rockdale and Kogarah to assist in those Town Centres achieving greater employment or other strategic objectives.”

The strategy noted that bulky goods retail uses in industrial areas (rather than centres) creates excessive trip generation to out–of–centre

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locations. It is noted, however, that historically bulky goods uses have been located out of centres. These uses are a significant employer and contributor to the economy, and whilst not an industrial use, they may provide a more appropriate use along busy arterial roads currently zoned for industrial.

The Draft SubRegional Strategy nominates “Enterprise Corridors” as an appropriate location for bulky goods retail land uses, where they can take advantage of signage opportunities, have a more compatible built–form and where there is better access to public transport.

As mentioned earlier, new centres of 50,000 square metres plus are becoming common within the major metropolitan markets, including greater metropolitan Sydney, while some precincts have in excess of 100,000 square metres of bulky goods floor area.

2.8.6 Bulky Goods Provision Jones Lang LaSalle has been monitoring major bulky goods development since 1996. The table below shows trends in the provision of bulky goods floor space over the past 10 years and compares this growth to the sales growth of household goods retailing, which accounts for a large proportion of bulky goods sales.

Table1: Bulky Goods Provision and Turnover Trends in Australia Source: Jones Lang LaSalle, Australian Bureau of Statistics

Bulky Goods Floor Space (sqm per person)

Sales Growth (average growth psqm pa, %)

1997 2002 2007 1992–1997

1997–2002

2002–2007

Sydney 0.319 0.374 0.457 2 2.1 1.6

Melbourne 0.366 0.422 0.480 6.7 2.8% 0.9

SE Queensland 0.340 0.462 0.548 2.7 6 2.8

Adelaide 0.335 0.364 0.424 3.9 9.1 –0.2

Perth 0.343 0.423 0.451 9.1 –4.2 9.2

This broad analysis suggests that much of the supply in bulky goods floor space has been balanced by increased demand for space, but that over the past five years, most markets have seen weaker sales growth per square metre, with growth being lower than inflation – in other words turnover is going backwards.

The strong supply growth in recent years has had a dampening impact on rental growth. This has been most evident in Sydney, which saw

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nominal rental growth averaging just 0.8% in the year ending June 2008. This was due to the strong growth in supply, together with a weaker housing market and retail sales. With rental growth below inflation, rents have effectively gone backwards in real terms.

2.8.7 Bulky Goods in the Study Area The major concentration of bulky goods retailing in the study area is along Taren Point Road in the area bounded by Captain Cook Drive, Taren Point Road, Parraweena Street and Willawong Road. This area comprises the following:

• Homeworks (Harvey Norman, Freedom, Nick Scali, Fantastic Furniture)

• Domayne • Bunnings Warehouse

These three key properties account for approximately 32,000 sqm of bulky goods retailing space. Other developments contribute further to the overall precinct, including Rays Outdoors, The Good Guys, Frasers, Seconds World, Kleenmaid, Officeworks, Flower Power and Beacon Lighting. We estimate that total bulky goods retailing provision within the Taren Point Road precinct is approximately 50,000 sqm. Whilst a major destination with very strong anchor tenants, the precinct is considerably smaller that other precincts such as Parramatta Road and Castle Hill. Further bulky goods development in this area may be warranted in order to accommodate emerging bulky goods retailers, including those in the leisure and lifestyle categories.

Unlike some regions of Sydney where there is clearly too much bulky goods space, there is very limited bulky goods retailing within Hurstville, Canterbury or the western region of Sutherland. Hurstville and Canterbury are served by bulky goods precincts outside their respective Council areas, namely Bankstown, Caringbah, Alexandria / Moore Park and to a lesser extent Pacific Highway Rockdale. An Ikea superstore is proposed at Tempe, which will no doubt draw residents from the study area while potential bulky goods development on airport land may also serve the northern portion of the study area.

In terms of proposed bulky goods retailing, the following two projects are of note:

• Small proposal at 152-158 Taren Point Road, Caringbah has been mooted, comprising approximately 5,600 sq.m of retail floor space;

• 13,500 sq.m Bunnings Warehouse is under construction at 127 Bath Road, Kirrawee, only 4km from Taren Point Road. The site is located in the Kirrawee industrial area, formerly occupied by Ingal Civil Products.

With an overall population of 409,000 people (2006 Census), the current provision of bulky goods space is well below the average for

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the Sydney Metropolitan Area of 0.45 sq.m per person (184,000sqm), and apart from Taren Point Road, is primarily fragmented and secondary space.

We consider that some of the local demand can be catered for by sites outside of the study area, including Bankstown, Rockdale, Alexandria and Auburn, as well as potential future development at Sydney Airport. It is not, however, desirable for residents of the study area to be so poorly served by bulky goods retailing and be required to travel long distances to access what has become a major sector of retailing.

We consider that further provision for growth in this retail sector should be considered, and the over-riding policies within the Metropolitan Strategy provide guidance as to where such additional retailing should go. These are summarised below:

• Further growth of Taren Point Road, Caringbah for bulky goods retailing to secure this precinct as the major location for bulky goods retail in the southern region.

• Provision for bulky goods retailing in the western region of Sutherland Shire, possibly in the vicinity of Menai.

• Opportunities along potential Enterprise Corridors and main arterial roads, for example King Georges Road, Canterbury Road and Princes Highway.

• Potential for bulky goods retailing within Hurstville City Centre, or on the fringe of the town centre.

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1. PLANNING POLICY REVIEW

2.8.8 Council's Responses to Subregional Strategy Following the release of the Draft Subregional Strategy in December 2007, Canterbury, Hurstville and Sutherland Councils resolved to make submissions to the draft Strategy, generally seeking clarification of a number of issues. The individual submission from all three councils is summarised as follows:

Canterbury Council believes that the proposed job target of 500 additional jobs for the City of Canterbury can be met within the timeframes of the strategy, although clarification is requested regarding a number of Category 1 and 2 Industrial Sites.

The Category 1 Industrial Lands precinct of Wiggs Road, Riverwood is described as an area exhibiting amenity issues with adjoining residentially zoned land in Bell Street and Schofield Street, Riverwood and it is suggested that a variation to the boundaries of this industrial area would reduce negative impacts.

The Category 2 Lands at Wiley Park (Including a number of isolated sites along Canterbury Road in the vicinity of Pentland and Draper Streets and an isolated site in Payten Avenue, Roselands) are suggested to be suitable for rezoning to a business zone. Although this is generally supported, Council does not believe the site in Payten Avenue is suitable for a business zone as it is surrounded by low density residential uses.

The Category 1 Lands around Canterbury Town Centre are the subject of a separate study that proposes this area be rezoned for a mix of commercial and residential uses to better utilise its proximity to Canterbury Railway Station.

The Centres and Corridors Section of the Strategy identifies Canterbury Road and King Georges Road as potential Enterprise/ Renewal Corridors. However, it is believed that the inclusion of an Enterprise Corridor would not be appropriate until the proposed Master Plan and supporting DCP for Canterbury Road is finalised by Council and the Department.

Council seeks further advice regarding the Government's rail freight strategies, in order to coordinate with the future expansion of Port Botany and the associated increase at the Enfield Terminal, as it is forecasted there will be a significant increase in rail/road traffic along the existing goods rail corridor and in nearby streets.

It is believed when the proposed regional road connecting Coronation Parade with Bexley Road, known as the Campsie Bypass is completed, it will provide an important link for regional traffic.

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Hurstville The employment capacity target of 3,000 additional jobs is supported by Council, and it is believed growth can be accommodated within the existing land use zones.

Council supports and acknowledges the fact that many of the older industrial areas adjoin residential areas, and measures need to be implemented in order to alleviate any issues between industrial and residential land uses. The main area of concern and focus is the large industrial area in Peakhurst, which is surrounded by residential development.

The Strategy proposed the benefits of potentially establishing Business Improvement Districts (BID) implementation which are a way of engaging property owners and businesses in the strategic planning of centres. Council highlights there are no specific actions identified under the objective, and there is no determining who the 'representative body' is who will allocate revenues to priority projects, or what its membership is. As Hurstville has been identified as a 'Major Centre', it is vital to ensure a co-ordinated approach with State agencies to ensure Hurstville City Centre achieves its maximum potential.

Council collects a Town Improvement Rate from three of its ten town centres and a special rate for businesses positioned within the Hurstville City Centre.

Council supports Hurstville's position within the Strategic Bus Corridor. Currently, Council has been working with local bus operators in the development of the Hurstville Bus Interchange.

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Sutherland Council believes there are a number of areas which require further study/direction. These include the status of Sutherland, Miranda and Caringbah Centres, and the future of the F6 freeway corridor.

Council’s Economic Development Committee (EDC) are particularly concerned about the roles of the various centres, the range of permissible uses in employment zones, the lack of transport options in the Shire, and the failure of the strategy to address social and demographic trends in the region.

Further investigation of the potential to utilise surplus land at west Menai is supported. Environmentally sensitive land should be excluded.

Taren Point Employment land is categorised in the Strategy as Category 1 ‘Land to be retained for Industrial Purposes'. However, recent research revealed demand for more flexibility in zoning permissibility in the employment land zone at Taren Point and Kirrawee. Flexibility in zoning might lead, for example, to a mixture of commercial and industrial uses on a site, with a net increase in the numbers of people employed. These areas should be considered in the strategy as Category 2 ‘Land with Potential to allow for A Wider Range of Employment Uses’.

The Department of Planning needs to assist Council in identifying measures to ‘intensify’ industrial use. Council cannot zone more land for industrial purposes, and increasing the development potential through increased FSR and height has limited impact on employment numbers.

The EDC noted that Taren Point is close to the airport and should be considered in association with airport related development and the transport corridor that is created.

The requirement for Council to investigate ways to ensure sufficient zoned land to enable the provision of comparatively low cost premises for start–up businesses is difficult given the limited land available in the Shire. If the NSW Government wishes to promote such initiatives financial support would be appropriate.

The strategy fails to satisfy the general objectives of the State Government’s Integrating Land Use and Transport Strategy. It addresses the various transport modes independently but fails to properly address their integration at the local and regional level and links to key employment generators and land use activity generally. The issue of transport generally appears un-integrated, almost detached, from its inter-relationship with employment. The strategy fails to address the high car dependency in the Shire, particularly for employment and recreational journeys. Transport across the Shire is disconnected and inefficient, and transport within employment zones is non existent; therefore the Shire’s car dependence is exacerbated.

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The strategy's focus on transport within the southern region limits its effectiveness and ability to integrate with the broader metropolitan / regional transport network and address the impact of employment and freight demands, major residential, commercial and retail land use developments in other areas and subregions.

The strategy also fails to recognise the strong employment and educational links between the Subregion and Wollongong.

Council supports the incorporation of Kurnell SREP17 into the Shire’s template LEP.

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2.9 LOCAL PLANNING CONTEXT This section provides a review of the existing local planning instruments relevant to this study provided by Canterbury City, Hurstville City and Sutherland Shire Councils. This will be subject to further discussion with HASSELL and the individual Councils. Key issues concerning the study area have been extracted from each document and are summarised below:

Statutory Policies

• Canterbury Environmental Planning Instruments;

• Hurstville City Council Local Environmental Plan 1994;

• Sutherland Shire Council Local Environmental Plan 2006;

• Canterbury City Council Development Control Plan N0. 21;

• Hurstville Development Control Plan 2007; and

• Sutherland Shire Development Control Plan 2006.

2.9.1 Canterbury Environmental Planning Instruments This section provides a review of the planning instruments and controls relevant to the study area.

Canterbury Planning Scheme Ordinance and Canterbury Local Environmental Precinct Plans Zone No. 3(f) (Peripheral Business) The objectives of Zone No 3(f) are:

(a) To recognise the special character and function of main road frontages within the area of Canterbury, and

(b) To allow low density retail, display, commercial and office development which does not:

• significantly compete with or detract from existing retail centres within the Area, or

• generate significant traffic, and

(c) To allow uses which are compatible with main road frontage without adversely affecting the amenity of properties in the vicinity, and

(d) To enable a flexible yet comprehensive approach to redevelopment in areas that may be physically and economically in need of renewal, and

(e) To provide employment opportunities, and

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(f) To allow interim use of properties without affecting the potential for long term comprehensive redevelopment, and

(g) To enable the Council to prepare development control plans for the purpose of providing additional details, controls and guidelines.

Permissible Uses: Bulky goods salesroom; business premises; light industry; office premises; peripheral business; and warehouse and distribution centre..

Zone No 3(f) (Specialised Business) The objectives of Zone No 3(f) are:

(a) To recognise the special character and function of main road frontages within the City of Canterbury, and

(b) To allow low density retail, display, commercial and office development which does not:

• significantly compete with or detract from existing retail centres within the City, or

• generate significant traffic, and

(c) To allow uses which are compatible with main road frontage without adversely affecting the amenity of properties in the vicinity, and

(d) To enable a flexible yet comprehensive approach to redevelopment areas that may be physically and economically in need of renewal,

(e) To provide employment opportunities, and

(f) To allow interim use of properties without affecting the potential for long term comprehensive redevelopment, and

(g) To enable the Council to prepare development control plans for the purpose of providing additional details, controls and guidelines.

Permissible Uses: Bulky goods salesroom; business premises; light industry; utility undertaking; vehicle sales centre; warehouse & distribution centre.

Industrial 4a (Light Industrial Zone) The objective of this zone is to achieve:

(a) A range of light industries which expand the local employment base and do not detrimentally affect the amenity of residential areas; and

(b) Suitable uses which support industrial development.

Permissible Uses: Light industry; light industry (change of use); telecommunications facilities; trade services; transport depot; utility

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undertaking; vehicle body repair workshop; vehicle repair station; and warehouse and distribution centre.

Clause 44(4A) identifies the maximum floor space ratio for development on land zoned Industrial 4(a) as 1.5:1.

Industrial 4d (Industrial Business Zone) The objective of this zone is to achieve a variety of business, office and compatible

(a) Light industrial development and other suitable uses which contribute to employment and economic growth of the area.

Permissible Uses: Light industry; light industry (change of use); office premises; office premises (change of use); telecommunications facilities; trade services; transport depot; utility undertaking; and warehouse and distribution centre.

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Table 1-1: Standard LEP Zone Transfer: Canterbury City Council

In existing LEP, not Standard Template In Standard Template, not existing LEP

Canterbury Planning Scheme Ordinance/Local Environmental Plans Standard Local Environmental Plan Template

Zone No 3(f) Specialised Business Zone Zone B7 Business Park

Objectives Objectives

(a) comprehensive development for a variety of retail, display, business and office uses which serve a regional or specialised demand and do not detrimentally affect the amenity of residential areas; and

(a) to provide a wide range of light industrial, warehouse and related land uses.

(b) development that does not significantly compete with, or detract from, existing retail centres in the area.

(b) to encourage employment opportunities and to support the viability of centres

(c) to minimise any adverse effect of industry on other land uses

(d) to enable other land uses that provide facilities or services to meet the day to day needs of workers in the area.

Without development consent Permitted without Consent

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Only with development consent Permitted with Consent

Depots; Light industries; Neighbourhood shops; Warehouse or distribution centres

Prohibited Prohibited

Zone No 4(a) Industrial General Zone Zone IN2 Light Industrial


(a) achieve a range of light industries which expand the local employment base and do not detrimentally affect the amenity of residential areas; and


(b) achieve suitable uses which support industrial development. (b) to encourage employment opportunities and to support the viability of centres

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(d) to enable other land uses that provide facilities or services to meet the day to day needs of workers in the area

Permitted without Consent Permitted without Consent

Industries referred to in Schedule 5; utility installations other than gas holders; generating works or both.

Development allowed only with consent Permitted with Consent

Any purpose other than a purpose included in item 1 or 3 Depots; Light industries; Neighbourhood shops; Warehouse or distribution centres


Boarding houses; caravan parks; child care centres; commercial premises (other than auction rooms, premises used for the purposes of rag collecting and dealing or recreation facilities); concrete batching plants; dwellings and dwelling-houses (other than dwellings and dwelling-houses used in conjunction with development for a purpose permitted in this zone); educational establishments; extractive industries; hospitals; institutions; mines; motels; motor showrooms; multiple unit housing; offensive or hazardous industries; places of assembly; roadside stalls; stock and sale yards; shops other than those referred to in Schedule 3; town houses; villa homes.

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Zone No 4(d) Industrial Business Zone Zone IN2 Light Industrial


(a) to achieve a variety of business, office and compatible light industrial development and other suitable uses which contribute to employment and economic growth of the area.





Without development Consent Permitted without Consent

Exempt development; public utility undertakings other than gas holders or generating works

Only with development Permitted with Consent

Any purpose other than those prohibited by Column 5 Depots; Light industries; Neighbourhood shops; Warehouse or distribution centres

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Boarding houses; caravan parks; child care centres; commercial premises (other than auction rooms, premises used for the purposes of rag collecting and dealing; or recreation facilities); dwellings and dwelling-houses (other than dwellings and dwelling-houses used in conjunction with development for a purpose permitted in this zone); educational establishments; hospitals; hotels; institutions; industries other than light industries; junk yards; liquid fuel depots; mines; motels; multiple unit housing; shops other than those referred to in Schedule 3; shops referred to in Schedule 3 having a Canterbury Road frontage; stock and sale yards; roadside stalls; town houses; villa homes.

DEFINITIONS

Bulky Goods Salesroom or Showroom: means a building or place used for the sale (by retail or auction), hire or display of items (whether goods or materials) which are of such a size, shape or weight as to require:

(a) a large area for handling, storage or display, or

(b) direct vehicular access to the site from the building or place by members of the public for the purpose of loading items into their vehicles after purchase,

but does not include a building or place used for the sale of foodstuffs or clothing.

Industry: means the manufacturing, assembling, altering, repairing, renovating, ornamenting, finishing, cleaning, washing, dismantling, processing or adapting of any goods or articles for a commercial purpose, but does not include anything elsewhere defined in this clause (except hazardous, light and offensive industries).

Light Industry: means an industry in which the processes carried on, or the transportation involved, or the machinery or materials used, do not interfere unreasonably with the amenity of the neighbourhood, but does not include anything (other than industry) elsewhere defined in this clause.

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Canterbury Council Development Control Plan Industrial Development Code No. 21 The Canterbury DCP 21 – Industrial Development Code applies to land zoned General Industrial 4(a) and Light Industrial 4(b) under the Canterbury Planning Scheme Ordinance and Industrial 4(a) under the Local Environmental Precinct Plans. It provides guidelines for the direction and control of development within the industrial centres of the region.

The Industrial Development Code No 21 aims to control the layout of industrial development with regard to the provision of building footprint, car parking, loading and unloading facilities, advertising signs, and environmental impacts.

The objectives of the Code are to provide for industrial development that:

(a) Is of a high standard of environmental design;

(b) Has adequate on-site parking and area for manoeuvring of vehicles;

(c) Has a visually pleasing appearance to the street; and

(d) Does not have a negative impact on adjacent or nearby residential uses.

Standard Controls include:

• Site Frontage: a minimum site frontage of 23m is required;

• Site Coverage: a maximum site coverage of 66% applies;

• Building Setbacks

A front boundary setback of 10m is required; this may be varied to 5m as long as the 5m is entirely landscaped

On corner sites, a landscaped setback of 2m is required to the secondary frontage.

• Landscaping: a minimum landscaped area of not less than 10% of the total site area is required, with a minimum landscaped strip of 3m deep across the property frontage;

• Retailing for industrial zones: the direct sales of goods to the public is limited to an ancillary activity supportive of the main function. Specific controls include:

Ancillary display and retail sale of goods is limited to 15% or 100 sqm of the floorspace of

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the building, whichever is lesser; and

Service shops are permitted, except on land fronting Canterbury Road.

2.9.2 Hurstville Environmental Planning Instruments This section provides a review of the planning instruments and controls relevant to the study area.

Hurstville City Council Local Environmental Plan (HELP) 1994 The Hurstville Local Environmental Plan (HELP) 1994 is the principal statutory document that applies to the Hurstville LGA, proving zoning objectives and development controls for residential, business, commercial, industrial, private and public open spaces, arterial roads and public transport corridors.

The relevant zones under the HELP 1994 of relevance to this study include Zone No 4 (Light Industrial Zone)

Zone No 4 (Light Industrial Zone) Zone No 4 (Light Industrial Zone) aims to promote economic well-being, growth and employment of both traditional and modern forms of light industrial development.

The objectives of the zone are:

(a) to accommodate both traditional and modern forms of light industrial, warehousing and like development outside areas used or zoned for residential or business purposes and so encourage economic and employment growth in Hurstville,

(b) to ensure industrial development creates areas which are pleasant to work in, safe and efficient in terms of transportation, land utilisation and service distribution,

(c) to encourage development of, and accommodate innovation in, the sources of economic growth,

(d) to enhance and improve the physical environment of the city by minimising disturbances caused by air pollutants, water pollutants, noise pollutants and other pollutants,

(e) to enable limited retailing for bulky goods where, in the opinion of the Council, this is unlikely to detract from the role and function of land zoned for business purposes,

(f) to enable development for the purposes of retailing only where it is associated with, and ancillary to, manufacturing purposes on the same land or where it serves the daily convenience needs of the local workforce.

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Permissible Uses: Bulky goods retail; light industries; and warehouse and distribution centres.

Clause 13 identifies the maximum Floor Space Ratio for a building within Zone No 4 as 1:1.

Clause 17 of the HELP contains matters of consideration for the purpose of bulky goods retailing on land within Zone No. 4 which specifies that:

"The council may grant consent to the carrying out of development on land within Zone No 4 for the purposes of a bulky goods showroom only if it is satisfied that:

(a) suitable land for the development is not available in any nearby business centre; and

(b) the carrying out of the development would not, by reason of the number of retail outlets which exist or are proposed on the land, conflict with the objectives of Zone No 4.

Figure 1-1: Employment Generating Lands – Canterbury and Hurstville

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Table 1-2: Standard LEP Zone Transfer: Hurstville City Council


Existing Hurstville Local Environmental Plan 1994 Standard Local Environmental Plan Template

Zone No 4 (Light Industrial Zone) Zone IN2 Light Industrial


(a) to accommodate both traditional and modern forms of light industrial, warehousing and like development outside areas used or zoned for residential or business purposes and so encourage economic and employment growth in Hurstville;


(b) to ensure industrial development creates areas which are pleasant to work in, safe and efficient in terms of transportation, land utilisation and service distribution;


(c) to encourage development of, and accommodate innovation in, the sources of economic growth;


(d) to enhance and improve the physical environment of the city by minimising disturbances caused by air pollutants, water pollutants, noise pollutants and other pollutants;


(e) to enable limited retailing for bulky goods where, in the opinion of the Council, this is unlikely to detract from the role and function of land zoned for business purposes;

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(f) to enable development for the purposes of retailing only where it is associated with, and ancillary to, manufacturing purposes on the same land or where it serves the daily convenience needs of the local workforce.

Permitted without Consent Permitted without Consent

Exempt development; public utility undertakings other than gas holders or generating works

Development allowed only with consent Permitted with Consent

Any purpose other than a purpose included in item 1 or 3 Depots; Light industries; Neighbourhood shops; Warehouse or distribution centres


Boarding houses; business premises, office premises and shops (other than those ordinarily incidental or subsidiary to industry, or which are primarily intended to serve persons occupied or employed in uses otherwise permitted in this zone, or which by virtue of their nature, the services provided, or the products produced, distributed or sold are, in the opinion of the council, appropriately located in an industrial zone); caravan parks; dual occupancies; dwellings (other than those attached to and ancillary to other buildings permitted in this zone); educational establishments; group homes; hazardous storage establishments; hospitals; industries other than light industries; institutions, liquid fuel depots; multiple dwellings; mines; motels; offensive industries; offensive storage establishments; residential flat buildings; transport depots.

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Zone 5 (b) Railway Special Uses Zone Zone SP2 Infrastructure


(a) to accommodate development for railways and associated purposes on railway land; and

(a) to provide for infrastructure and related uses.

(b) to encourage the redevelopment of railway land and air space in the vicinity of railway stations to take advantage of public transport accessibility.

(b) to prevent development that is not compatible with or that may detract from the provision of infrastructure.

Without development consent Permitted without consent

Advertising; exempt development; public utility undertakings other than gas holders or generating works.

Only with development consent Permitted with consent

Any purpose other than a purpose included in item 1 or 3 The purpose shown on the Land Zoning Map, including any development that is ordinarily incidental or ancillary to development for that purpose.

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Amusement centres; animal establishments; automotive uses; boarding houses; caravan parks; convenience stores; gas holders; generating works; group homes; hazardous industries; hazardous storage establishments; hospitals; industries other than light industries; liquid fuel depots; materials recycling yards; offensive industries; offensive storage establishments; panel beating workshops; plant and equipment hire establishments; service stations; sex services premises; warehouse or distribution centres.

DEFINITIONS

Bulky Goods Salesroom or Showroom: means a building or place used for the sale (by retail or auction), hire or display of items (whether goods or materials) which are of such a size, shape or weight as to require:

(a) a large area for handling, storage or display, or

(b) direct vehicular access to the site from the building or place by members of the public for the purpose of loading items into their vehicles after purchase,

but does not include a building or place used for the sale of foodstuffs or clothing.

Industry: means the manufacturing, assembling, altering, repairing, renovating, ornamenting, finishing, cleaning, washing, dismantling, processing or adapting of any goods or articles for a commercial purpose, but does not include anything elsewhere defined in this clause (except hazardous, light and offensive industries).

Light Industry: means an industry in which the processes carried on, or the transportation involved, or the machinery or materials used, do not interfere unreasonably with the amenity of the neighbourhood, but does not include anything (other than industry) elsewhere defined in this clause.

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Hurstville City Development Control Plan 2007 The Hurstville Development Control Plan provides specific guidelines which contain detailed provisions on various aspects of development. These provisions are given weight in the assessment of development applications. Any proposed development should satisfy the requirements of the relevant sections of the DCP.

The Hurstville DCP No. 1 applies to all land within the City of Hurstville, to which the Hurstville Local Environmental Plan applies, except for land identified in DCP No. 2 Hurstville City Centre. In reference to the relevant content, DCP No. 1 addresses and specifies development controls for Light Industrial Areas.

The relevant sections of the DCP that may apply to the purpose of the study include:

Development Control Plan No. 1: Hurstville Local Government Area Wide DCP Section 3: Development Guidelines

Section 5: Control for Specific Non-Residential Development Types

Standard Controls relevant to the study include:

• Floor Space Ratio: stated maximum FSR of 1:1;

• Lot Size: the minimum allotment size for allotments with a full street frontage is 650m2, with a width of at least 15m.

• Setbacks:

A minimum front boundary setback of 4.5m, with a minimum of 3m to be landscaped

Corner allotments are required to have a minimum 2m setback on the secondary frontage

If there is a common boundary with residential development, a minimum width of 2m landscaped strip is required to screen the two land uses

• Height: maximum height of two storeys or 9.5m; may be varied to three storeys of 12.5m if the development is in context with the topography and surrounding development.

• Fencing: maximum height of 2.5m permitted for front fencing.

• Car parking:

Office Area: 1 space per 40m2 GFA

Manufacturing (factory): 1 space per 100m2

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GFA

Warehouse (storage): 1 space per 300m2 GFA

2.9.3 Sutherland Shire Council Environmental Planning Instruments

This section provides a review of the planning instruments and controls relevant to the study area.

Sutherland Shire Council Local Environmental Plan 2006 The zones permitting land uses associated with employment include:

• Zone 7 - Mixed Use - Kirrawee

• Zone 11 - Employment

• Zone 12 - Special Uses

Zone 7 - Mixed Use - Kirrawee The objectives of this zone are as follows:

(a) to take advantage of the zone's access and profile from the Princes Highway.

(b) to create development that mixes employment activities within a liveable urban environment,

(c) to encourage high employment-generating development that encompasses high technology industries, commercial display centres and light industries compatible with the existing locality and adjoining residential buildings,

(d) to allow the zone to support a live-and-work culture that provides for local employment and acts as a transition between the employment activity and strict residential uses in the surrounding neighbourhood.

(Objectives e to j)

NB the gazettal of draft LEP Amendment 4 is imminent (by end of the year DoP has informed Council) and provides for the following additional objectives in Zone 7:

(k) to ensure any expansion of retail activity within the zone maintains the role and function of Kirrawee Town Centre and does not adversely impact on the sustainability of other centres in the Sutherland Shire,

(l) to ensure any new shops integrate with and support the existing Kirrawee Town Centre,

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(m) to ensure development is compatible with, and does not adversely impact on, the amenity of the surrounding residential area, particularly in terms of air pollutants, noise emissions and visual effects.

Permissible Uses: High technology industries; support industries; and warehouses

Zone 11 - Employment The objectives of this zone are as follows:

(a) to ensure development supports the role and functioning of employment areas,

(b) to promote appropriate development that will contribute to employment generation and the economic growth of Sutherland Shire,

(c) to provide for a range of related land uses to provide direct services to employees,

(d) to provide for development for the purposes of shops and businesses ancillary to other development carried out on the land concerned,

(e) to provide for bulky goods premises only on selected sites.

Permissible Uses: Bulky goods premises (only as mapped); high technology industries; industries; service support industries; and warehouses.

Clause 33(11) states the building height of any building on land in Zone 11 - Employment must not exceed a height of 12 metres, as measured from ground level to the highest point of the roof.

Clause 35(11) identifies the maximum floor space ratio applying to development on land zoned Zone 11 - Employment as 1:1.

Clause 36 – Landscaped Area aims to ensure adequate opportunities for vegetation are provided for. Cl.36(9) states the minimum landscaped area for Zone 11 - Employment is 15% of the area of the site.

Zone 12 - Special Uses The objectives of this zone are as follows:

(a) to provide for a range of community facilities and services to meet the needs of the community,

(b) to allow for development by public authorities,

(c) to provide for a variety of development in accordance with local educational, religious or similar community demand,

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(d) to ensure the scale and nature of new development is compatible with the surrounding urban form and natural setting of the zone, and

(e) to recognise critical requirements, as identified by the Commonwealth, relating to the use of the Commonwealth land for defence purpose

Permissible uses: include advertisements, car parks, childcare centres, community facilities, educational establishments, public hospitals, recreation areas, roads, utility installations (except for gas holders or generating works), waste recycling and management centres.

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Figure 1-2: Employment Generating Lands - Sutherland

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Table 1-3: Standard LEP Zone Transfer: Sutherland Shire Council


Sutherland Shire Local Environmental Plan 2006 Standard Local Environmental Plan Template

Zone 7 - Mixed Use - Kirrawee Zone B4 Mixed Use or B5 Business Development Zone)


to take advantage of the zone's access and profile from the Princes Highway. to provide a mixture of compatible land uses.

to create development that mixes employment activities within a liveable urban environment,

to integrate suitable business, office, residential, retail and other development in accessible locations so as to maximise public transport patronage and encourage walking and cycling.

to encourage high employment-generating development that encompasses high technology industries, commercial display centres and light industries compatible with the existing locality and adjoining residential buildings,

to allow the zone to support a live-and-work culture that provides for local employment and acts as a transition between the employment activity and strict residential uses in the surrounding neighbourhood.

Without development consent Permitted with development consent

Development for the purpose of drainage; exempt development

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Development (other than development included in Item 2) for the purpose of:

advertisements, arts and crafts centres, awnings, backpackers’ accommodation, boarding houses, building identification signs, business premises, car parks, childcare centres, community facilities, convenience stores, educational establishments, entertainment facilities, food shops, high technology industries, hotels, medical facilities, mixed use premises, motels, places of assembly, places of public worship, recreation areas, recreation facilities, registered clubs, residential flat buildings, restaurants, roads, seniors housing, service support industries, shop-top housing, shops, tourist facilities, utility installations (except for gas holders or generating works), warehouses. Demolition not included in Item 2

Boarding houses; Business premises; Child care centres; Community facilities; Educational establishments; Entertainment facilities; Function centres; Hotel or motel accommodation; Information and education facilities; Office premises; Passenger transport facilities; Recreation facilities (indoor); Registered clubs; Retail premises; Seniors housing; Shop top housing.


Any development not included in item 2 or 3.

Zone 11 - Employment Zone IN2 Light Industrial


(a) to ensure development supports the role and functioning of employment areas; (a) to provide a wide range of light industrial, warehouse and related land uses.

(b) to promote appropriate development that will contribute to employment generation and the economic growth of Sutherland Shire;


(c) to provide for a range of related land uses to provide direct services to employees; (c) to minimise any adverse effect of industry on other land uses

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(d) to provide for development for the purposes of shops and businesses ancillary to other development carried out on the land concerned;

(d) to enable other land uses that provide facilities or services to meet the day to day needs of workers in the area.

(e) to provide for bulky goods premises only on selected sites.

Without development consent Permitted without Consent

Development for the purpose of: bush fire hazard reduction work, drainage. Exempt development.

Only with development consent Permitted with Consent

Development (other than development included in Item 2) for the purpose of:

advertisement, animal boarding or training establishments (not including a riding school), arts and crafts centres, awnings, brothels, bulky goods premises (but only on land identified on the map for such a purpose, bus depots, business identification signs, car parks, childcare centres, community facilities, convenience stores, dwelling houses ancillary to other permissible uses, food shops, generating works, high technology industries, junk yards, liquid fuel depots, maritime activities, motor showrooms, nightclubs, passenger transport facilities, places of public worship, recreation areas, recreation facilities, registered clubs, repair centres, road transport terminals, roads, service stations, service support industries, sex shops, utility installations, vehicle and mechanical repair premises, vehicle rental centres, veterinary hospitals, warehouses, waste recycling and management centres. Demolition not included in item 2.

Depots; Light industries; Neighbourhood shops; Warehouse or distribution centres

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Zone 12 - Special Uses Zone SP1 Special Activities


to provide for a range of community facilities and services to meet the needs of the community,

to provide for special land uses that are not provided for in other zones

to allow for development by public authorities, (b) to provide for sites with special natural characteristics that are not provided for in other zones.

to provide for a variety of development in accordance with local educational, religious or similar community demand,

(c) to facilitate development that is in keeping with the special characteristics of the site or its existing or intended special use, and that minimises any adverse impacts on surrounding land.

to ensure the scale and nature of new development is compatible with the surrounding urban form and natural setting of the zone, and

to recognise critical requirements, as identified by the Commonwealth, relating to the use of the Commonwealth land for defence purpose

Without development consent Permitted without consent

Development for the purpose of: bush fire hazard reduction work, drainage; Exempt development.

The purpose shown on the Land Zoning Map, including any development that is ordinarily incidental or ancillary to development for that purpose.

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Development (other than development included in item 2) for the purpose of:

the particular use indicated in respect of land by lettering on the map, advertisements, car parks, childcare centres, community facilities, educational establishments, public hospitals, recreation areas, roads, utility installations (except for gas holders or generating works), waste recycling and management centres. Demolition not included in item 2.



DEFINITIONS

Bulky goods premises: means a building or place used primarily for the sale by retail, wholesale or auction of (or for the hire or display of) bulky goods, being goods that are of such size or weight as to require:

(a) a large area for handling, display, or storage, or

(b) direct vehicular access to the site of the building or place by members of the public, for the purpose of loading and unloading such goods into or from their vehicles after purchase or hire,

but does not include a building or place used for the sale of foodstuffs or clothing unless their sale is ancillary to the sale or hire of bulky goods.

Industry: means the manufacturing, production, assembling, altering, formulating, repairing, renovating, ornamenting, finishing, cleaning, washing, dismantling, transforming, processing or adapting, or the research and development of any goods, chemical substances, food, agricultural or beverage products, or articles for commercial purposes, but in clause 11 (Zoning Table) does not include extractive industry, hazardous industry, high technology industry, offensive industry or a mine.

Light Industry: means an industry, not being an offensive industry or hazardous industry, in which the scale of activities involved, the processes carried on, the transportation involved or the machinery or materials used do not, in the opinion of the consent authority, interfere unreasonably with the amenity of the neighbourhood

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Sutherland Shire Development Control Plan 2006 The Sutherland Shire DCP 2006 identifies aims and controls for development within the Local Government Area (LGA). Chapter 2: Locality Strategies identifies strategies for site specific areas based on their unique location, land use, history or geography, and Chapter 3: Urban Design outlines the relevant urban design principles in order to achieve a high quality development and minimise potential impacts on surrounding development.

Four primary employment areas within the Sutherland Shire are addressed in the chapter. These include:

• Taren Point Employment Area;

• Heathcote Employment Area;

• Kirrawee Employment Area; and

• Miranda Employment Area.

The key aims of the employment areas are:

• To mitigate the detrimental environmental impacts of industrial development;

• To enhance the visual appearance of the employment area by ensuring new development achieves a high architectural and landscape standard;

• To improve pedestrian amenity in the street and throughout the area;

• To encourage new enterprises to establish and grow in Taren Point by providing a range of suitable accommodation types. These may be either High Technology businesses or new economy businesses which form part of a chain in the design and manufacturing process;

• To recognise the potential that exists for employment in the maritime and aquatic leisure markets and to encourage the growth of this sector to take advantage of the area's location;

• To encourage businesses to establish in the area to take advantage of the skill and education levels of the Shire's residents;

• To increase its attractiveness as an employment location;

• To protect the existing service industries and heavy industries in the area from competition from inappropriate retail activities or business premises; and

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• To encourage Shire residents to establish and develop their businesses locally.

The DCP provides controls for land zoned Zone 11 Employment Lands and aims to set reasonable economic, urban design and environmental standards for the identified employment lands.

Controls for land within Zone 7 and Zone 12 are site specific, that is, covered in locational strategies in the DCP. However, general controls for employment lands include:

• Allotment size: the minimum allotment size is 10,000sqm with a minimum width of 21m and a minimum depth of 27m.

• Setbacks:

Minimum front setback of 9m

For corner sites there is a minimum 3m setback for the secondary street frontage

• For sites in excess of 10,000sqm, an outdoor staff recreation area is required, being a minimum of 16sqm, with a minimum dimension of 3m.

Building Employment Opportunities in Sydney’s South · 2016-03-16 · 6 Building Employment...

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Transcript of Building Employment Opportunities in Sydney’s South · 2016-03-16 · 6 Building Employment...