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GREATER SYDNEY COMMISSION – EMPLOYMENT LANDS ANALYSIS

FINAL REPORT Prepared for

17.07.2018 Published Oct 2019

Greater Sydney Commission (GSC)

GSC - Employment Lands Analysis 180717_v2.docx

© SGS Economics and Planning Pty Ltd 2018

This report has been prepared for Greater Sydney Commission (GSC). SGS Economics and Planning has taken all due care in the preparation of this report. However, SGS and its associated consultants are not liable to any person or entity for any damage or loss that has occurred, or may occur, in relation to that person or entity taking or not taking action in respect of any representation, statement, opinion or advice referred to herein.

SGS Economics and Planning Pty Ltd ACN 007 437 729 www.sgsep.com.au Offices in Canberra, Hobart, Melbourne, Sydney

Greater Sydney Commission – Employment Lands analysis 1

TABLE OF CONTENTS

EXECUTIVE SUMMARY 4

1. CONTEXT 6

2. DATA & CONCORDANCE RISKS 7

2.1 Introduction 7

2.2 Data quality 7

2.3 Geographic concordances 8

3. LAND STOCK AND SPATIAL DISTRIBUTION 12

3.1 Current land stock 12

3.2 Historic development and spatial distribution 14

3.3 Dynamic of releases 16

3.4 Land Zoning 17

4. ACTIVITIES IN EMPLOYMENT LANDS 19

4.1 Type of activities 19

4.2 Spatial distribution 20

4.3 Historical change (Census 2011-2016) 26

4.4 Neighbouring use spill overs - ERRORS 28

5. RENTS AND LAND VALUES 31

5.1 Rents and Land values 31

5.2 Assumptions and limitations 33

6. ECONOMIC MEASURES 34

6.1 Job density and intensification 34

6.2 Industry compatibility and diversification 35

6.3 Productivity (GVA) 39

6.4 Nature of zones 46

6.5 Urban services 47

APPENDIX 1 – DATA THREATS (PRECINCT LEVEL) 49

APPENDIX 2 – INDUSTRY GROUPS 57

APPENDIX 3 – URBAN SERVICES INDUSTRIES 58

APPENDIX 4 – AUDITED PRECINCTS FOR LAND VALUES AND RENTS 59


LIST OF FIGURES

FIGURE 1: INTERSECTION OF ELDM PRECINCTS AND INPUT GEOGRAPHIES 8

FIGURE 2: IDENTIFICATION OF CONFLICTING PRECINCTS 9

FIGURE 3: NEIGHBOURING LAND USE SPILL OVERS 9

FIGURE 4: CHANGING AREAL EXTENT OF GEOGRAPHIES 10

FIGURE 5: TOTAL EMPLOYMENT LANDS STOCK AT 2017 (HA) 12

FIGURE 6: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS AT 2017 (HA) 13

FIGURE 7: MAP OF EMPLOYMENT LANDS IN GREATER SYDNEY AT 2017 13

FIGURE 8: HISTORIC SPATIAL DISTRIBUTION OF ZONED EMPLOYMENT LANDS (DISTRICT) (HA) 14

FIGURE 9: HISTORIC SPATIAL DISTRIBUTION OF ZONED EMPLOYMENT LANDS (LGA) (HA) 15

FIGURE 10: EMPLOYMENT BY INDUSTRY GROUP IN GREATER SYDNEY AT 2016 20

FIGURE 11: EMPLOYMENT BY INDUSTRY GROUP IN CENTRAL CITY DISTRICT AT 2016 21

FIGURE 12: EMPLOYMENT BY INDUSTRY GROUP IN WESTERN CITY DISTRICT AT 2016 22

FIGURE 13: EMPLOYMENT BY INDUSTRY GROUP IN EASTERN CITY DISTRICT AT 2016 23

FIGURE 14: EMPLOYMENT BY INDUSTRY GROUP IN NORTH DISTRICT AT 2016 24

FIGURE 15: EMPLOYMENT BY INDUSTRY GROUP IN SOUTH DISTRICT AT 2016 25

FIGURE 16: EXAMPLE 1 – NEIGHBOURING USE SPILL OVER (HEALTH AND EDUCATION) 28

FIGURE 17: EXAMPLE 2 – NEIGHBOURING USE SPILL OVER (POPULATION SERVING) 29

FIGURE 18: OTHER EXAMPLES OF NEIGHBOURING USE SPILL OVER 30

FIGURE 19: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS LAND VALUES AT 2018 ($ PER SQM) 32

FIGURE 20: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS RENTS AT 2018 ($ PER SQM) 32

FIGURE 21: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS JOB DENSITIES AT 2016 35

FIGURE 22: CURRENT INDUSTY DIVERSITY IN EMPLOYMENT LANDS AT 2016 (SD) 36

FIGURE 23: SPATIAL DISTRIBUTION OF INDUSTRY DIVERSIFICATION IN EMPLOYMENT LANDS 2011-2016 (SD) 37

FIGURE 24: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS GVA AT 2016 ($M) 40

FIGURE 25: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS GVA ($ PER JOB) AT 2016 41

FIGURE 26: EMPLOYMENT LANDS GVA ($ PER JOB) COMPARED TO LGA AVERAGE AT 2016 42

FIGURE 27: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS GVA GROWTH 2011-2016 ($M) 43

FIGURE 28: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS GVA GROWTH 2011-2016 ($ PER JOB) 44

FIGURE 29: URBAN SERVICES IN EMPLOYMENT LANDS (PER HA) AT 2018 48

LIST OF TABLES

TABLE 1: EMPLOYMENT LANDS STOCK PER DISTRICT AT 2017 (HA) 12

TABLE 2: ZONED EMPLOYMENT LANDS GROWTH RATES 14

TABLE 3: ZONED EMPLOYMENT LANDS DISTRIBUTION (%) 14

TABLE 4: DEVELOPED EMPLOYMENT LANDS DISTRIBUTION AND GROWTH RATES 16

TABLE 5: UNDEVELOPED SERVICED EMPLOYMENT LANDS DISTRIBUTION AND GROWTH RATES 16

TABLE 6: UNDEVELOPED UNSERVICED EMPLOYMENT LANDS DISTRIBUTION AND GROWTH RATES 17


TABLE 7: EMPLOYMENT LANDS ZONING MIX AT 2017 (HA) 17

TABLE 8: EMPLOYMENT LANDS ZONING MIX AT 2017 (DISTRICTS) (%) 17

TABLE 9: INDUSTY SPLIT IN EMPLOYMENT LANDS AT 2016 (JOB NUMBERS) 19

TABLE 10: INDUSTY SPLIT IN EMPLOYMENT LANDS AT 2016 (%) 19

TABLE 11: SPATIAL DISTRIBUTION OF INDUSTRY GROUPS AT 2016 20

TABLE 12: CENTRAL CITY DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC) 21

TABLE 13: WESTERN CITY DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC) 22

TABLE 14: EASTERN CITY DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC) 23

TABLE 15: NORTH DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC) 24

TABLE 16: SOUTH DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC) 25

TABLE 17: GROWTH BY INDUSTRY GROUP 2011-2016 (JOB NUMBERS) 26

TABLE 18: GROWTH BY INDUSTRY GROUP 2011-2016 (%) 26

TABLE 19: LAND VALUES OF EMPLOYMENT LANDS AT 2018 ($ PER SQM) 31

TABLE 20: EMPLOYMENT LANDS RENTS AT 2018 ($ PER SQM) 31

TABLE 21: JOB DENSITIES IN EMPLOYMENT LANDS (JOBS PER HA) 34

TABLE 22: INDUSTRY DIVERSIFICATION IN EMPLOYMENT LANDS (SD) 36

TABLE 23: EMPLOYMENT LANDS GVA ($M) 39

TABLE 24: EMPLOYMENT LANDS “PER JOB” GVA ($) 39

TABLE 25: EMPLOYMENT LANDS GVA PER INDUSTRY GROUP AT 2016 ($M) 40

TABLE 26: EMPLOYMENT LANDS “PER JOB” GVA ($) BY INDUSTRY GROUP AT 2016 41

TABLE 27: BUSINESS COUNT IN DIFFERENT EMPLOYMENT LAND ZONES AT 2018 46

TABLE 28: SPLIT OF BUSINESSES IN DIFFERENT EMPLOYMENT LAND ZONES (%) AT 2018 46

TABLE 29: SPLIT OF BUSINESSES IN DIFFERENT EMPLOYMENT LAND ZONES (PER HA) AT 2018 46

TABLE 30: RATIO OF URBAN SERVICES IN EMPLOYMENT LANDS TO “OTHER” LANDS AT 2018 47

TABLE 31: URBAN SERVICES IN DIFFERENT EMPLOYMENT LAND ZONES AT 2018 47

TABLE 32: SUMMARY OF PRECINCT DATA RELIABILITY AND THREATS 49

TABLE 33: PRECINCT DATA RELIABILITY AND THREATS 49

TABLE 34: INDUSTRY GROUPS 57

TABLE 35: LIST OF URBAN SERVICES INDUSTRIES 58

TABLE 36: SUMMARY OF AUDITED PRECINCTS FOR LAND VALUES AND RENTS 59

TABLE 37: AUDITED PRECINCTS FOR LAND VALUES AND RENTS 59


EXECUTIVE SUMMARY

Gaining a better understanding of Employment Lands is essential as we plan for Sydney’s future. Despite current pressure for rezonings and competing pressures on the use of land, the economic contribution of Employment Lands is significant, and their management critical for the functioning of the city.

Summary of findings

Part of the Employment Lands Database development project

This report was undertaken for the Greater Sydney Commission (GSC) as part of the Employment Lands Database development project. The primary intent for the database is to serve as a single point of information and provide Local Councils with a valuable resource on industrial lands.

Challenges and limitations associated with the data

During the development of the database, several challenges and limitations were identified. These relate particularly to the geographic concordances (when trying to scale down the data to a specific location), but also in the way data is collected and the overall integrity of the main dataset (ELDM) used in this analysis. As a consequence, analysis of this data must be cognisant of these limitations, particularly at a fine-grained level. It also identifies a clear case for future actions to improve the data accuracy.

Employment Lands encompass over 13,800Ha of zoned land

Sydney’s overall Employment Lands stock encompasses over 13,800Ha of zoned land (developed or undeveloped) with about 6,500Ha of proposed land located in the Western City District (particularly around future Western Sydney Airport - Badgerys Creek). The majority of the zoned land is situated in the Western and Central City districts with limited room for growth in the Eastern City, North and South districts.

Increase of stock by 550Ha

There has been an increase of stock between the two most recent Censuses (2011-2016) by about 550Ha of zoned land - taking place in the Western and Eastern City districts, with the remaining Greater Metropolitan area experiencing a loss. The overall distribution of land between the districts has remained relatively similar.

IN1 most dominant land-use zone

The most dominant land zone in Employment Lands is IN1 (64% of total) with certain “unexpected” uses finding their way into the precincts due to rezonings, such as Business zones and residential developments. The South District shows the highest variety of zones with the Western City District having a focus on IN1.

575,000 jobs taking place in Employment Lands

A multitude of activities take place in Employment Lands and their diversity challenges the perception of them being one-dimensional manufacturing hubs. There is an overall of 575,000 jobs (28% of all Greater Sydney’s jobs) while the broad ‘Industrial’ job classification remains the most prevalent industry group, with strong growth trends in the other three categories – Population Serving, Health and Education and Knowledge Intensive arranged in descending order. All districts are experiencing a job growth in Employment Lands, with greatest


tendencies in Western City District. The top five 1-digit ANZSIC industries, by number of employees, are Manufacturing, Retail Trade, Transport, Postal and Warehousing, Construction and Wholesale Trade.

Average land value of $550 per Sqm, rents at $100 per Sqm

Land values and rents follow similar patterns from a district perspective, having the average Metropolitan1 purchase price of $550 per Sqm and rental price of $100 per Sqm. The most expensive district is the North, with the Western City having the lowest values. Compared to land values, rents show a more even spatial distribution at a precinct level.

Growing outputs (GVA – total of $83 billion) and intensification of jobs

The output generated by Employment lands (measured using GVA) as well as the intensity of activities taking place (measured in jobs per Ha) have recorded growth over the five-year period between the two latest census. GVA has increased by $16 billion to an overall of $83 billion. The per job productivity has also increased from $125,000 to $145,000. All districts are recording positive trends. The jobs per Ha rates has changed from 52 to 54, with only the Eastern and Central City districts experiencing a slight decline.

Increasing variety and diversification of industries

The variety of industries and overall diversification taking place in Employment Lands is also on the rise. The most diverse precincts are located around Sydney/Parramatta CBD, Mascot-Alexandria (Airport), Kogarah-Strathfield corridor and across the North District.

Mixture of business, especially in IN2 zones

REMPLAN2 business point data shows a variety of activates taking place in the different land-use zones within Employment Lands. This re-affirms the overall findings of Census 2016 employment data, validating there is a mixture of industries and businesses (35,000) existent in the precincts. The nature of zones is heterogeneous with IN1 zones hosting the largest count of businesses – around 20,000 while IN3 zones have the greatest variety. The largest intensity (per Ha) is present in IN2 zones.

High density of Urban Services

One of the main roles of Employment/industrial Lands is their overall importance in the functioning of the city and serving its population. Although some industries aren’t highly productive per se (when viewed through a GVA lens), by supporting other industries and the overall operational capacity of the city (as a whole), they contribute immensely to the overall economy. An estimated 10,000 Urban Services businesses locate in Employment Lands. The highest intensity (per Ha) of is by far in the North District (nearly two and a half times higher than the Metropolitan average). From a land-use perspective, IN2 zones have the greatest per Ha ratio.

Recommended next steps

It is recommended that further work be undertaken to confirm the initial findings of this report, including stakeholder engagement around improved data sources, and develop a better understanding of the end user needs. Engagement with relevant stakeholders such as the DPE and TPA is recommended as a first step. Amending the data collection and precinct spatial definition, applied by different agencies (so that it fits Employment Lands needs), would also enhance the evidence-base. Additional steps could also include: auditing of problematic geographies, carrying out further research to determine the actual state of play in problematic precincts (potentially involving spatial statistics) and sourcing smaller scale data inputs.

1 Limited sampling of data (excludes Eastern City). See Rents and land values Chapter 5 and Appendix 3 - Audited precincts for land values and rents 2 https://remplan.com.au/

https://remplan.com.au/


1. CONTEXT

SGS Economics and Planning has been commissioned by the GSC to build an Employment Lands Database and answer a set of specific analytical questions using the outputs.

This report was undertaken for the Greater Sydney Commission (GCS) as part of the Employment Lands Database development project. The initiative to create this comprehensive and diverse collection of data was multifaceted and included a number of stakeholders, extensive geoprocessing and the application of expert knowledge, methods and theories from various fields.

The primary intent of the database is to serve as a single source of “truth” and provide Local Councils with a valuable resource on industrial lands. It also achieves consistent outputs across Greater Sydney and establishes a broader baseline of understanding Employment Lands.

This report serves several purposes:

▪ Present the findings of data analysis

▪ Identify the limitations of data sources

▪ Interrogate wider questions around industrial lands

▪ Identify precincts and/or places of interest for further examination.


2. DATA & CONCORDANCE RISKS

This chapter points out potential challenges and assumptions related to the datasets and geoprocessing methods used during this work.

2.1 Introduction Before the data is analysed in subsequent chapters, it is important that the limitation of the data sources and the desktop-based approach be articulated.

The analysis in this report is largely dependent on two major components. Firstly, the quality and reliability of the data received from the Department of Planning and Environment (DPE), Greater Sydney Commission (GSC) and other participating stakeholders, in particular the Employment Lands Development Monitor (ELDM). Secondly, the assumptions associated with the different types of geographies and potential issues on how they concord/change over time.

A variety of methods and techniques have been applied to address these, nevertheless, there is still need for caution and additional investigation of certain outputs. Professional judgement should be used accordingly.

Note: The findings and numbers (jobs, floorspace, land etc.) in this report are referring to Employment Lands only. The Eastern, Central and Western City are referring to the Greater Sydney districts (as defined by the Greater Sydney Commission) and NOT the Three Cities, unless otherwise specified with a footnote. 2.2 Data quality The overall quality, diversity and richness of data received was very good. Some minor errors were noted in relation to the ELDM dataset, especially around data integrity - which could potentially lead to small discrepancies when comparing precincts over a period of time (time-series). The main issue noted revolved around a lack of a consistent precinct unique identifier (ID), making the linking of data more challenging. There was also some mismatch between the alpha numeric (Excel/PDF reports) and spatial (GIS) inputs.

Although a rigorous QA of the received input data was conducted, there is still potential for errors occurring at the source.

Potential issues noted:

▪ Lack of unique identifier (ID)

▪ Multiple precincts having the same name ▪ Mismatch between naming in Excel and GIS layers

▪ Trailing spaces and spelling mistakes ▪ Inconsistent number of precincts between Excel and GIS layers

Most of these points have been addressed and noted in the database with more detailed explanations.


2.3 Geographic concordances Several geographies and sources were used during the collation of spatial (GIS) datasets. As different agencies and departments use distinctive ways of storing/reporting data this was unavoidable. However, this creates potential for a number of errors when carrying out concordances and trying to “narrow down” the data to a smaller (precinct) scale.

Allocation of input geographies (DZN, TZ, SA2 etc) to precincts

The initial challenge was focused around the concordance of input data-geographies (DZN, TZ, SA2 etc) to specific precincts and was twofold in its nature. The first step of intersecting the two different layers, requires making an assumption on when the intersection area is sufficient to be considered viable and when it is purely a geoprocessing error (small areas). The conclusion was to only include Destination Zones (DZN) that precincts intersect by more than 5 Ha or 5% of their original area. This was advanced in order to avoid allocating data from the larger geography to a very small area (sliver) of the precinct, causing an unreasonable inflation.

FIGURE 1: INTERSECTION OF ELDM PRECINCTS AND INPUT GEOGRAPHIES

Source: SGS Economics and Planning 2018

Precinct conflicts

The second challenge revolved around internal “conflicting” precincts. If there is more than one precinct in a geography, there is no definitive way of determining the split of data without reaching out for expensive research methods such as audits. The assumption made was to allocate the data based on the area overlap proportion of the two (or more) “conflicting” precincts. If, for example, Precinct 1 intersects TZ1 by 70Ha, and Precinct 2 by 30Ha, 70% of the data would be allocated to Precinct 1 and 30% of the data to Precinct 2. The following formula is applied to each record (e.g. TZ1, TZ2… TZn) in the input geography layer (e.g. TPA Travel Zones).

Precinct X data allocation % = Precinct X intersect area/ of all Precinct intersect areas *100

Precinct

TZ 2

Precinc

TZ 3

Precinct 3

Sliver intersection

Full intersection

Precinct

TZ 2

Precinc

TZ 3

Precinct 3


FIGURE 2: IDENTIFICATION OF CONFLICTING PRECINCTS


Neighbouring land use spill overs

An additional challenge is when the input geographies encompass much more land than the precinct itself. While it might be acceptable to ignore this concern when the neighbouring land uses are “environmental” in nature (e.g. RE1, RE2 etc.) the issue arises when these uses are labour intensive, such as business and special purpose zones. As the main assumption is that all the associated input data (e.g. employment in DZN) is located in the precincts (Employment Lands) this almost certainly creates a “spill over” from these neighbouring uses. This cannot be easily addressed without extensive research or hard to acquire datasets3.

FIGURE 3: NEIGHBOURING LAND USE SPILL OVERS


Changes of geographies over time

The changing extent of various geographies, especially on the urban fringe is another challenge. This makes it hard to compare data over different periods of time and might create unusual “drops” or increases of specific activities in certain precinct. In the example above, if Travel zone (TZ2) got split up into two Travel zones (TZ2 and TZ4), and excluded the hospital from the employment precinct, the data would show a “drop” in health-related industries. Although these health jobs were actually never located in the precinct, it creates confusing outputs that require extensive small-scale research in order to understand the changes. However, by solving the previous issue (spill over) this would automatically address most of the data discrepancy produced by the changing extent of the geographies as well.

3 One potential dataset to consider might be Workcover

Precinct 1

Precinct 2

TZ 1

Precinct 1/2

TZ 2

Precinct 1/2

TZ 3

Precinct 3

Jobs allocation

SP1

SP1 spill over

(Hospital)


FIGURE 4: CHANGING AREAL EXTENT OF GEOGRAPHIES


Recommendations

The following list of recommendations is intended to provide guidance in analysing the data and articulates potential further steps which could improve the way the data is captured at the source.

When analysing the data:

▪ Take caution (especially with precinct level outputs)

When analysing the database and drawing conclusions from this report, in particular related to small scale precinct data or conflicting precincts, certain reservations and precautions must be taken.

▪ Check Appendix 1 for list of data “threats”

The problematic geographies and precincts have been flagged in the database, with the intent to point out areas requiring special attention and further investigation. Refer to Appendix 1 – Data threats (precinct level) for a detailed list of identified risks.

▪ Use professional judgement (in particular with jobs, GVA and DA data)

There is high risk for making high-impact “real-world” decisions related to any of these precincts, solely based on data sources used in this report, with their noted limitations. The intention of the data is to help understand broader patterns and show general trends, but also to document and find solutions to some of these problems. Outputs that especially require additional attention are related to: jobs, GVA and DA approvals.

Further steps:

▪ Advise DPE on data collection and precinct spatial structure

Collaborate with DPE in further developing the ELDM and addressing outstanding issues as noted in Section 2 – Data quality.

▪ Audit problematic geographies

Carry out further research to determine the actual state of play in problematic precincts.

▪ Develop advanced concordance algorithm

Progress more advanced statistical research and analysis that would develop a concordance algorithm grounded in spatial statistics.

▪ Source smaller scale data inputs

Reach out for other potential datasets/providers that could supply detailed point data with business details such as number of employees.

▪ Collaborate with TPA/ABS on potential geography amendments

Precinct 1/2

TZ 2

Precinct 1/2

TZ 3

Precinct 3

Jobs allocation

SP1

SP1 spill over

(Hospital)

TZ 4


Seek advice and collaborate with TPA/ABS to find possible solutions that would allow “closer” tracking of Employment Lands - e.g. amend existing and/or establish new geographies.

INSIGHTS

▪ Good base – DPE Employment Lands Development Monitor (ELDM) ▪ Slight inconsistency and lack of data integrity ▪ Rich datasets (ABS, TPA, REMPLAN, POI etc.) ▪ Geographic concordance issues:

▪ Allocation of data to smaller geographies ▪ Precinct conflicts ▪ Changing extents over time ▪ Neighbouring land-use spill overs


3. LAND STOCK AND SPATIAL DISTRIBUTION

This chapter analyses the quantum and spatial distribution of Employment Lands in the past, present and future, particularly focusing on the dynamic of releases.

3.1 Current land stock There is around 10,800Ha of developed industrial land and 3,000Ha of undeveloped industrial land in Greater Sydney. Of the undeveloped land, 2,500Ha is not serviced and only 600Ha serviced. The ratio of developed to undeveloped land is approximately 4:1 and there are large amounts of proposed Employment Lands, particularly in the Western City District, concentrated around the future Western Sydney Airport.

TABLE 1: EMPLOYMENT LANDS STOCK PER DISTRICT AT 2017 (HA)

District Developed Undeveloped Serviced Unserviced Total - Zoned Proposed

Western City 3,865 1,571 450 1,121 5,436 6,643

Central City 3,412 1,244 118 1,125 4,656 -

South 1,526 140 8 132 1,666 -

Eastern City 1,458 39 - 39 1,497 -

North 533 39 11 28 571 -

Total 10,794 3,032 587 2,445 13,826 6,643

Source: DPE ELDM 2017 and SGS Economics and Planning 2018

Most of the developed land (67%) is located in Sydney’s Western City and Central City districts with very small amounts (4%) in the North District. Similar patterns are present in undeveloped lands, with the exception that there is limited room for growth in the Eastern City and the North/South Districts - ratio of developed to undeveloped is 16:1 compared to 2.5:1 in the Western/Central City. The main locations of serviced undeveloped land are Erskine Park, Moorebank, precincts around Prospect Reservoir, Blacktown, Penrith and Campbelltown.

FIGURE 5: TOTAL EMPLOYMENT LANDS STOCK AT 2017 (HA)



FIGURE 6: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS AT 2017 (HA)


FIGURE 7: MAP OF EMPLOYMENT LANDS IN GREATER SYDNEY AT 2017



3.2 Historic development and spatial distribution The overall distribution and quantity of zoned4 Employment Lands has mostly remained constant across Greater Sydney (increase of 550Ha between 2011 and 2017), with the Western and Eastern City districts experiencing highest growth rates - CAGR5 of 1.7% and 1.6% respectively. Growth in the Central City and South district remained relatively flat, while the North District experienced a negative CAGR of -1.25%.

TABLE 2: ZONED EMPLOYMENT LANDS GROWTH RATES

District 2011 2017 Ha CAGR

Western City 4,909 5,436 527 1.71%

Central City 4,719 4,656 -63 -0.22%

South 1,670 1,666 -4 -0.04%

Eastern City 1,361 1,497 136 1.60%

North 617 571 -45 -1.26%

Total 13,275 13,826 550 0.68%

Source: DPE ELDM 2011-2017 and SGS Economics and Planning 2018

TABLE 3: ZONED EMPLOYMENT LANDS DISTRIBUTION (%)

District 2011 2017

Western City 37% 39%

Central City 36% 34%

South 13% 12%

Eastern City 10% 11%

North 5% 4%

Total 100% 100%


FIGURE 8: HISTORIC SPATIAL DISTRIBUTION OF ZONED EMPLOYMENT LANDS (DISTRICT) (HA)


4 All developed and undeveloped land, excluding proposed 5 Compound Annual Growth Rate – CAGR. The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period https://www.investopedia.com/terms/c/cagr.asp

https://www.investopedia.com/terms/c/cagr.asp


LGAs experiencing the most significant change are located in the Western City District, namely: Penrith, Fairfield, Liverpool, Wollondilly and Camden. Strathfield, Bayside and Hornsby have also experienced similar, but less significant patterns. Another interesting phenomena worth noting are “creeping” residential developments6 occurring in Employment Lands, particularly Bayside (4.5Ha) and Inner West (4.25Ha).

FIGURE 9: HISTORIC SPATIAL DISTRIBUTION OF ZONED EMPLOYMENT LANDS (LGA) (HA)


6 These residential developments didn’t result in land rezonings, as they used alternative DA pathways and are effectively still part of the industrial zones

Western City

Central City Eastern City

South District North District


3.3 Dynamic of releases

Developed land

There has been an overall increase in Developed Employment Lands between 2011 and 2017 by 7% (689Ha) (1.1% CAGR), although a minor dip in the stock occurred in 2012. The majority of the releases took place in the Western and Eastern City districts following similar trends as in Figure 9: Historic spatial distribution of Zoned Employment lands (LGA) (Ha).

TABLE 4: DEVELOPED EMPLOYMENT LANDS DISTRIBUTION AND GROWTH RATES

District 2011 2017 Change (PP) Ha CAGR

Western City 34% 36% 2.62% 384 1.76%

Central City 32% 32% -1.32% 148 0.74%

South 15% 14% -0.96% 29 0.32%

Eastern City 13% 14% 0.56% 174 2.15%

North 6% 5% -0.90% -46 -1.37%

Total 100% 100% - 689 1.1%


Undeveloped serviced land

There is an obvious commensurate relationship between developed and undeveloped land. As developed land increase, undeveloped land decrease (assuming no increase in supply of the latter). There has been an overall drop in Undeveloped Serviced Employment Lands between 2011 and 2017 by -23% (-175Ha) with a CAGR of -4.26%. This is most noticeable in the Central City District, with undeveloped land declining but total stock remaining relatively stable. The Western City District stock is increasing due to recent or proposed rezonings.

TABLE 5: UNDEVELOPED SERVICED EMPLOYMENT LANDS DISTRIBUTION AND GROWTH RATES


Western City 49% 77% 27.97% 79 3.26%

Central City 49% 20% -28.60% -253 -17.36%

South 1% 1% -0.10% -3 -5.45%

Eastern City 1% 0% -1.12% -9 -52.31%

North 0% 2% 1.84% 11 -

Total 100% 100% - -175 -4.26%


Undeveloped unserviced and proposed land

Undeveloped and unserviced land stock has remained relatively stable, experiencing some fluctuation over time, but remaining at relatively similar levels between 2011 and 2017 (a 36Ha change overall). This might be explained by an influx of additional, newly zoned land even with the transformation of unserviced to serviced land. The spatial distribution has remained similar across all districts, with a slight additional shift towards the Western City District.

There is no historic data on proposed Employment Lands, but the current “pending” stock should be considered as a reservoir for undeveloped unserviced land. The entire contingent (6,643Ha) is located in Sydney’s Western City District, around the Western Sydney Airport, Moorebank, Glen Lee (Campbelltown) and Catherine Fields (Camden). This reflects the ability to rezone for industrial uses in the Central and Western Cities districts. This is highly unlikely in the Eastern City District due to land use conflicts and land prices.


TABLE 6: UNDEVELOPED UNSERVICED EMPLOYMENT LANDS DISTRIBUTION AND GROWTH RATES


Western City 43% 46% 2.75% 64 0.98%

Central City 46% 46% 0.43% 43 0.64%

South 7% 5% -1.44% -30 -3.38%

Eastern City 3% 2% -1.30% -30 -8.99%

North 2% 1% -0.45% -10 -4.91%

Total 100% 100% - 36 0.25%


3.4 Land Zoning The most dominant land use zone in Employment Lands is IN1 (64%) accounting for almost twice as much as all the other zones combined. Although not part of the original nomenclature, there are also noticeable traces of B5-B7 zones (due to rezonings) and small amounts of residential developments.

Comparing the different districts, the zoning mix is quite diverse across. The South District shows the greatest variety, while the Western City District has a focus on IN1 land.

TABLE 7: EMPLOYMENT LANDS ZONING MIX AT 2017 (HA)

Land-use zone Central City Western

City Eastern City North South Total7

IN1 3,036 3,994 804 300 900 9,033

IN2 878 703 139 229 450 2,400

IN3 224 416 - - 238 878

IN4 - - - 16 4 20

B5 183 240 39 7 30 500

B6 105 26 109 18 10 268

B7 134 20 89 2 42 287

Other 161 142 381 8 4 696

Residential 0.7 3.5 6.6 0.1 - 11


TABLE 8: EMPLOYMENT LANDS ZONING MIX AT 2017 (DISTRICTS) (%)

District IN1 IN2 IN3 IN4 B5 B6 B7 Other Total

Central City 64% 19% 5% 0% 4% 2% 3% 3% 100%

Western City 72% 13% 7% 0% 4% 0% 0% 3% 100%

Eastern City 52% 9% 0% 0% 2% 7% 6% 24%8 100%

North 52% 40% 0% 3% 1% 3% 0% 1% 100%

South 54% 27% 14% 0% 2% 1% 2% 0% 100%


7 A small discrepancy might be present ~1% between the zoning totals and all other Employment Lands totals (which are constant – 13,826Ha) elsewhere reported in this paper, due to GIS processing 8 Most of this land is associated with Port Botany – SP1


INSIGHTS

▪ Overall stock of 13,700Ha of zoned land

▪ 10,700 of developed and 3,000Ha of undeveloped land ▪ Increase of 550Ha between two Censuses 2011-2016 ▪ Reduced stock in 3 out of 5 districts ▪ IN1 most dominant zone

▪ 6,500Ha of proposed land in Western City District ▪ Majority of land stock in Western and Central City districts ▪ Limited room for growth in Eastern City and North/South districts ▪ Creeping residential developments

FURTHER STEPS

▪ Work with DPE to further improve the ELDM ▪ Develop evidence-based method for precinct categorisation

(GSC definition - Industrial and urban services activity types) ▪ Research reasoning behind proposed zonings ▪ Consolidate other GSC precinct specific reports ▪ Slight inconsistency and lack of data integrity


4. ACTIVITIES IN EMPLOYMENT LANDS

This chapter examines the type of activities (jobs) taking place in Employment Lands, their spatial distribution and historical dynamics.

4.1 Type of activities Employment lands are home to a variety of industries and are significant accommodators of jobs. They account for approximately 575,000 jobs9 or 28% of all Greater Sydney’s jobs. Jobs have been categorised by four employment types identified by the GSC – Knowledge Intensive, Health and Education, Population serving and Industrial10. These are outlined in Appendix 2.

Overall, the most prevalent industry group is Industrial followed by Population Serving. This clustering of various activities demonstrates the multiple roles that Employment lands play in supporting the functioning of the city and serving its population. It also demonstrates that Employment Lands aren’t purely manufacturing hubs but have a multi-dimensional role in Sydney’s economy.

TABLE 9: INDUSTY SPLIT IN EMPLOYMENT LANDS AT 2016 (JOB NUMBERS)

District Knowledge Intensive

Health and Education

Population Serving

Industrial Other11 Total -

Districts

Central City 23,582 9,790 45,326 67,890 9,964 156,551

Western City 17,337 12,030 45,836 55,033 8,795 139,032

Eastern City 27,487 11,165 40,101 46,899 6,388 132,040

North 18,375 14,932 25,850 16,878 3,893 79,928

South 8,297 6,679 23,989 27,380 4,952 71,297

Total 95,078 54,596 181,102 214,080 33,993 578,848

Source: Census 2016 and SGS Economics and Planning 2018

TABLE 10: INDUSTY SPLIT IN EMPLOYMENT LANDS AT 2016 (%)



Population Serving

Industrial Other11 Total -

Districts

Central City 16% 7% 31% 46% 6% 100%

Western City 13% 9% 35% 42% 6% 100%

Eastern City 22% 9% 32% 37% 5% 100%

North 24% 20% 34% 22% 5% 100%

South 13% 10% 36% 41% 7% 100%

Total 16% 9% 31% 37% 6% 100%


9 Due to slightly different methodologies, this numbers might vary from DPE findings 10 SGS Economics and Planning and GSC 2016 11 T-Inadequately Described ANZSIC category


4.2 Spatial distribution The most active district in Greater Sydney is the Central City, containing over 27% of total jobs. It also has the highest job count in Industrial, with similar levels of employment to the Western City and Eastern City districts in Population Serving and Knowledge Intensive category respectively. The Eastern City District has the highest proportion of Knowledge Intensive jobs, likely driven by the migration of jobs away from the Sydney CBD. The North District has a high proportion of Health and Education jobs, due to its proximity to Royal North Shore hospital and the Artarmon precinct (and the Travel Zone spill overs).

TABLE 11: SPATIAL DISTRIBUTION OF INDUSTRY GROUPS AT 2016

District Central City Western City Eastern City North South Total

Knowledge Intensive 25% 18% 29% 19% 9% 100%

Health and Education 18% 22% 20% 27% 12% 100%

Population Serving 25% 25% 22% 14% 13% 100%

Industrial 32% 26% 22% 8% 13% 100%

All jobs 27% 24% 23% 14% 12% 100%


FIGURE 10: EMPLOYMENT BY INDUSTRY GROUP IN GREATER SYDNEY AT 2016



Central City District

The Central City District is Greater Sydney’s biggest employer. Its main focus is around the Industrial and Population Serving groups with top industries in Manufacturing, Transport, Postal and Warehousing, Wholesale Trade, Construction and Retail Trade. It is experiencing a strong growth across all categories with the interesting exception of Industrial. This could be driven by the increased demand for other uses that require the location of precinct characteristics now competing for space. The “high activity” points are Silverwater, Seven Hills and Kings Park.

FIGURE 11: EMPLOYMENT BY INDUSTRY GROUP IN CENTRAL CITY DISTRICT AT 2016


TABLE 12: CENTRAL CITY DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC)

Industry (ANZSIC) Jobs

Manufacturing 29,439

Transport, Postal and Warehousing 17,874

Wholesale Trade 16,323

Construction 16,115

Retail Trade 15,346



Western City District

The Western City District is Sydney’s second largest Employment Lands employer, having a similar industry breakdown as the Central City District. Its top industries are Manufacturing, Retail Trade, Construction, Transport, Postal and Warehousing and Wholesale Trade. The highest growth is occurring in Population Serving (similar number of jobs to the Eastern City District), while also experiencing the lowest decline of all districts in Industrial. This suggests that there might be a transitioning of existing and new Industrial jobs to the Western City District. The increase in industrial land and the focus on Western Sydney Airport attest to this change. Its best performers are Wetherill Park, Ingleburn and Moorebank.

FIGURE 12: EMPLOYMENT BY INDUSTRY GROUP IN WESTERN CITY DISTRICT AT 2016


TABLE 13: WESTERN CITY DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC)



Retail Trade 15,492

Construction 15,248





Eastern City District

The Eastern City’s dominant industry group is Industrial. It has a greater proportion than all the other districts in Knowledge Intensive jobs and a sizable proportion/largest growth in Population Serving. Its main industries are Transport, Postal and Warehousing, Retail Trade, Manufacturing, Construction and Wholesale Trade. Eastern City’s leading precincts are Mascot and Alexandria, which are at the same time, Greater Sydney’s largest employers (in the context of Employment Lands).

FIGURE 13: EMPLOYMENT BY INDUSTRY GROUP IN EASTERN CITY DISTRICT AT 2016


TABLE 14: EASTERN CITY DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC)



Retail Trade 15,791


Construction 10,696




North District

The North District supports 80,000 jobs with an even distribution of industries. It has the highest proportion of Health and Education jobs, while having the lowest count in Industrial. Growth is predominately occurring in the Health and Education and Population Serving groups, following similar negative, declining trends to other districts in Industrial. North Districts top industries are Health Care and Social Assistance, Retail Trade, Manufacturing, Construction and Professional, Scientific and Technical Services while St Leonards and Brookvale present the stand out precincts.

FIGURE 14: EMPLOYMENT BY INDUSTRY GROUP IN NORTH DISTRICT AT 2016


TABLE 15: NORTH DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC)


Health Care and Social Assistance 11,063

Retail Trade 10,017

Manufacturing 7,127

Construction 6,940

Professional, Scientific and Technical Services

6,512



South District

The South District employs around 12% of all Sydney’s Employment Lands workers. It is mainly Industrial and Population Serving focused. The highest growing industry is Health and Education, with Industrial experiencing a decline over the last two Census periods. The top five industries are Manufacturing, Construction, Retail Trade, Wholesale Trade and Transport, Postal and Warehousing. Caringbah/Taren Point and Chullora represent the largest employing precincts.

FIGURE 15: EMPLOYMENT BY INDUSTRY GROUP IN SOUTH DISTRICT AT 2016


TABLE 16: SOUTH DISTRICT – TOP 5 INDUSTRIES AT 2016 (ANZSIC)



Construction 8,866

Retail Trade 6,977





4.3 Historical change (Census 2011-2016) The historical data and trends, between the two Censuses, are showing a shift from a strong Industrial focus towards a more mixed distribution of industries. Out of the districts, Central City is undergoing the biggest structural change, effectively losing 15,000 Industrial jobs, while experiencing a growth of 14,000 jobs in the other three sectors. The Population Serving category is experiencing strong growth across all districts, in particular the Western and Eastern City (36% growth), while Health and Education are growing in the South and North District in particular.

TABLE 17: GROWTH BY INDUSTRY GROUP 2011-2016 (JOB NUMBERS)



Population Serving

Industrial Other11 Total – District Growth

Central City 4,276 1,741 8,549 - 15,716 7,570 6,419

Western City 1,654 1,449 12,134 - 3,423 7,110 18,925

Eastern City 4,165 1,790 10,364 - 8,430 4,912 12,801

North 1,721 2,889 4,549 - 4,609 2,760 7,310

South 690 1,634 4,024 - 7,175 4,005 3,178

Total 12,506 9,503 39,620 - 39,353 26,358 48,633

Source: Census 2011, 2016 and SGS Economics and Planning 2018

TABLE 18: GROWTH BY INDUSTRY GROUP 2011-2016 (%)



Population Serving

Industrial Other11 Total – District Growth

Central City 22% 22% 23% -19% 316% 4%

Western City 11% 14% 36% -6% 422% 16%

Eastern City 18% 19% 35% -15% 333% 11%

North 10% 24% 21% -21% 244% 10%

South 9% 32% 20% -21% 423% 5%

Total 15% 21% 28% -16% 345% 9%


Note: Due to a methodological change in the way ABS captures the Place of Work information, the Other T-Inadequately Described ANZSIC Division has experienced a large increase


INSIGHTS

▪ Overall of 575,000 jobs taking place in Employment Lands (28% of all Greater Sydney’s jobs)

▪ Variety of industries - largest proportion in Industrial group ▪ Growth of non-Industrial groups ▪ Districts findings:

▪ Central City contains 27% of total jobs ▪ Western City highest proportion of Population Serving ▪ Eastern City highest proportion of Knowledge Intensive ▪ North District biggest variety ▪ Commonality in top five 1-digit industries

▪ Census findings:

▪ Decline of Industrial over 5-year period ▪ Diversification towards other industry groups

▪ Spill over issues

FURTHER STEPS

▪ Resolve spill over issues ▪ Further understand what is influencing the location of industries ▪ Find ways to link land releases and type of jobs locating ▪ Look into potential future transitioning of industries in Central City and

Western City districts


4.4 Neighbouring use spill overs – Data limitations and ERRORS As mentioned earlier in the report (Section 2.3) there are risks for potential job inflations of certain precincts and sequentially districts, due to neighbouring land use spill overs and concordances. This is particularly evident in Health and Education (major hospitals sharing the same DZN) but is harder to spot in the other industry categories. A couple of examples have been provided that explain this issue in detail and point out the risks of applying the employment (activity) without a critical lens.

Example 1 – Health and Education (hospital) spill over

As shown in Figure 16, the Artarmon precinct intersects four Travel Zones (1810, 1838, 1841 and 1843). All four intersections meet the sliver test12. The calculation is also showing that only 4% of the land use zones (excluding IN1-IN4 and B5-B7), within these Travel Zones, are considered job intensive and represent a “threat”. Nevertheless, within these 4%, there is a major Health and Education employer, namely, the Royal North Shore Hospital (5,000+ jobs). As the specific Travel Zone that contains the hospital (1843) passes the sliver test, these jobs get allocated to the Artarmon precinct13 and essentially inflate the job numbers for this industry group. This doesn’t mean that the precinct lacks Health and Education jobs, but that it is impossible to make the distinction of the number without further research and analysis (small scale business datasets or audits).

FIGURE 16: EXAMPLE 1 – NEIGHBOURING USE SPILL OVER (HEALTH AND EDUCATION)

Source: TPA 2016, DPE ELDM 2017 and SGS Economics and Planning 2018

12 The precinct forms an intersect with each Travel Zone by more than 5 Ha or 5% of its original area 13 The initial assumption is that all jobs within the TZ are located in the Employment Lands precinct


Example 2 – Population Serving (shopping centre) spill over

In the second example, we see a similar case but with a different industry involved. The Brookvale precinct is made out of two Travel Zones that both pass the sliver test (2145 and 2144). Similarly, to the first example, 4% of the neighbouring land uses are considered a potential “threat”. As the map is pointing out, the only difference is that in this particular instance the “intruder” isn’t a hospital (Health and Education) but a shopping centre (Population Serving). Using the same principles as in Example 1, the precincts job numbers get inflated by the employment associated with Warringah Mall.

FIGURE 17: EXAMPLE 2 – NEIGHBOURING USE SPILL OVER (POPULATION SERVING)



Other cases of spill over

Apart from the demonstrated examples, there are other cases of neighbouring spill over worth noting. The risks essentially exist for each precinct that has neighbours (take up of neighbouring uses in associated Travel Zones more than 0%). If the employer is large enough, even a 1% land take up can inflate the jobs number substantially. Developing a quantitative way of determining a certain threshold above which the risks become greater, would require extensive research and assumptions related to the employment “split” itself. Another interesting example is associated with very small precincts that take up modest amounts of intersecting Travel Zones and appear to have a “diverse” palette of jobs, when in fact, these are result of spill overs. These precincts are especially present in Sydney’s Inner Suburbs.

FIGURE 18: OTHER EXAMPLES OF NEIGHBOURING USE SPILL OVER



5. RENTS AND LAND VALUES

This chapter examines rents and land prices based on Valuer General and improved capital values14. This chapter does not contain a complete data set due to the information available at time of reporting.

5.1 Rents and Land values The average Greater Sydney per Sqm price of Employment Lands is around $550, excluding the Eastern City District15. This value varies across districts and is highest in the North ($952) while lowest in Western City ($396). This variation might be attributed to available land stock, overall demand and proximity to population and businesses. Especially high values are noticed around Hornsby, Parramatta and Liverpool indicating a potential relationship between land prices and proximity to centres.

TABLE 19: LAND VALUES OF EMPLOYMENT LANDS AT 2018 ($ PER SQM)

District $ per Sqm

Central City $619

Western City $396

Eastern City N/A

North $952

South $566

Total $546

Source: JLL 2018

The rents follow similar trends in terms of average district values. The Metropolitan average is $106, North District having the highest ($144) and Western City District the lowest values ($92). On the other hand, rents have a far more even spatial distribution of prices compared to land values.

TABLE 20: EMPLOYMENT LANDS RENTS AT 2018 ($ PER SQM)

District $ per Sqm

Central City $112

Western City $92

Eastern City N/A

North $144

South $113

Total $106

Source: JLL 2018

14 At this stage, the analysis encompasses a limited number of precincts and districts. See Appendix 4 for a full list. 15 Eastern City not included at this time due to availability of previous studies. See Appendix 4 for full list of covered precincts.


FIGURE 19: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS LAND VALUES AT 2018 ($ PER SQM)

Source: JLL 2018 and SGS Economics and Planning 2018

FIGURE 20: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS RENTS AT 2018 ($ PER SQM)



5.2 Assumptions and limitations

Land Value

JLL were engaged to undertake research and produce estimated prices ($ per sqm) for each precinct through manual adjustment. This incorporated JLL’s valuation and agency knowledge of the lands. Significant difference between JLL assessment values and Valuer General Growth’ is observed which is attributable to the limitations of the sample land data:

• Land-only sales are underrepresented and rare in certain precincts and brownfield

areas, this makes historical data imprecise

• The sample-set of historic sales will not always reflect current value due to

systematically higher/lower prices caused by each precinct’s unique industrial land

mix

Rents

Three categories of properties (Prime and Secondary warehouses and High-Tech properties,) were used to inform an adjusted rental price ($ per sqm) for Employment Lands. This also incorporated JLL agency knowledge of the market.

The primary limitation of the “raw” input data is incomplete information vis-à-vis precincts having unique non-standardised rental quality which makes inter-precinct comparison and relative pricing challenging.

INSIGHTS

▪ Average land value of $550 per Sqm ▪ Average rent of $100 per Sqm ▪ Rental prices showing a more even spatial distribution than land values

FURTHER STEPS

▪ JLL to complete review for remaining precincts/districts ▪ Understand what is driving land/rental values


6. ECONOMIC MEASURES

This chapter analyses various economic measures such as job density, intensification, compatibility and productivity (GVA).

6.1 Job density and intensification The average job density in Greater Sydney’s Employment Lands is around 54 jobs per Ha. The highest density is occurring in the North District (150 jobs per Ha), nearly one and a half times greater compared to the Eastern City District (91 jobs per Ha).

The other three districts are at similar, lower densities - 40 jobs per Ha. The spatial distribution, at a precinct level, is showing relatively similar trends - smaller precincts having higher densities (this might be due to spill over issues) and, in particular, low density areas occurring around Prospect Reservoir.

There has been an overall increase in the intensity of activities (measured as jobs per Ha) taking place in Employment Lands - growth from 52 to 54 jobs per Ha between the two Censuses (2011-2016). However, some of the districts (Eastern/Central City) have experienced a decline.

TABLE 21: JOB DENSITIES IN EMPLOYMENT LANDS (JOBS PER HA)

District 2011 2016

Central City 46 46

Western City 34 36

Eastern City 93 91

North 125 150

South 46 47

Total 52 54


There are several reasons for why this trend is occurring. These may include:

▪ Additional land releases increasing the supply relative to jobs ▪ Industries requiring a larger ratio of jobs to floorspace (more land for operating) ▪ Higher operational efficiencies (fewer people required to do the same job) ▪ A change to industries that require less floorspace but still require an industrial land

location ▪ Newly released lands not yet getting developed to full capacity

To better understand this requires a discussion with businesses in the precincts where this is occurring.


FIGURE 21: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS JOB DENSITIES AT 2016


6.2 Industry compatibility and diversification Using standard deviation (SD)16 as a measure of diversity the data is showing an increase in the variety of industries locating in Employment Lands. This holds true for all districts with South District experiencing the greatest increase, along with Western City and Central City districts.

The current distribution is exhibiting a clustering of diversified precincts around Sydney CBD, Parramatta CBD, Mascot-Alexandria (Airport), Kogarah-Strathfield corridor as well as across the North District (more scattered fashion). This is likely due to several factors including businesses seeking locational advantages adjacent major centres (and therefore happy to put up with higher densities, as well as other jobs pushed out of commercial centres seeing value in locating nearby.

16 The higher the SD the less diverse a precinct is – indicating a dominance of one/or few industries. https://www.investopedia.com/terms/s/standarddeviation.asp

https://www.investopedia.com/terms/s/standarddeviation.asp


FIGURE 22: CURRENT INDUSTY DIVERSITY IN EMPLOYMENT LANDS AT 2016 (SD)


Areas of particular diversification (compared to the last Census 2011) are concentrated around major road intersections, and along other important infrastructure axes. Uniformity seems to be appearing more frequently around Erskine Park, where new lands is focused on freight and logistics and warehousing, and certain specialised precincts such as Kurnell, Port precincts and the old refinery precincts along the Parramatta river.

TABLE 22: INDUSTRY DIVERSIFICATION IN EMPLOYMENT LANDS (SD)

District 2011 2016 Change (PP)17

Central City 7% 5% -1.8%

Western City 7% 5% -2.1%

Eastern City 5% 4% -1.0%

North 4% 4% -0.6%

South 7% 5% -2.5%

Total 6% 4% -1.5%


17 Negative numbers indicating diversification and positive uniformness


Specific industries experiencing the most significant change are, interestingly, the traditional inhabitants of Employment Lands. Namely, the highest share growth (PP18) is occurring in Construction (3%) with Manufacturing and Wholesale Trade experiencing negative trends (-7% and -4%). These declining industries are still amongst the predominant, in spite of their overall share loss. Another important trend is the small, but significant overall proportional growth (ranging from 0-1% individually and 4% combined) of the other 1-digit industries, which might imply deeper structural changes starting/continuing to occur.

FIGURE 23: SPATIAL DISTRIBUTION OF INDUSTRY DIVERSIFICATION IN EMPLOYMENT LANDS 2011-2016 (SD)


An interesting pattern arising from Figure 22 and Figure 23 is the correlation between diversity in 2016 and the change in diversity between 2011 and 2016. The Eastern City District precincts, particularly around the CBD, have high levels of diversity in 2016 but relatively low change in the previous five years. This suggests that they were already quite diverse and have now stabilised (or matured).

Conversely, precincts in Sydney’s ‘manufacturing triangle’ (between Liverpool, Blacktown and Parramatta) had relatively low levels of diversity in 2016 but have witnessed relatively high increases in diversity in the past five years. This suggests that these precincts are now transitioning. This is instructive as it helps to picture a ‘wave’ of industrial transition that is moving east to west across Sydney’s economic landscape.

18 Point percentage growth


INSIGHTS

▪ Intensification of activities – from 52 to 54 jobs per Ha ▪ District findings:

▪ North District has highest density – 150 jobs per Ha ▪ Eastern City District – 91 jobs per Ha ▪ Other district at about 40 jobs per Ha

▪ Increase in variety of industries taking place (specifically around Sydney/Parramatta CBD, Kogarah-Strathfield)

▪ Non-traditional industries rising in number

FURTHER STEPS

▪ Investigate what industries tend to collocate ▪ Inspect potential candidate precincts for diversification ▪ Examine density “thresholds” (willingness of industries to collocate)


6.3 Productivity (GVA) Gross Value Added (GVA)19 is a metric of productivity. It looks at the economic contribution of a place. It is important to be clear that GVA is not the only definition of value. Value can also be defined by role in value chain and broader economic or societal value. For the purposes of this report however, GVA is the measure used to represent economic productivity.

Observing GVA (as total $ of output), two major trends become evident. Firstly, the overall output of Employment Lands is increasing. There has been an additional $16 billion created by jobs and industries in 2016 compared to 2011. Secondly, the overall “per job” productivity is also increasing – from $127,110 to $144,681. There are several potential reasons for such developments:

▪ Overall increase in job numbers (48,633) ▪ Boosted efficiency and general productivity (technological advancements) ▪ Structural changes (more high productivity jobs) ▪ Inflation

In a spatial context, the biggest output is generated by the Central City District with Eastern City District having the highest “per job” productivity. Between the two Censuses, all districts have experienced a positive trend, with the Central City achieving the most extensive growth.

TABLE 23: EMPLOYMENT LANDS GVA ($M)20

District 2011 ($m) 2016 ($m) Change ($m) Change (%)

Central City $19,415 $23,734 $4,320 22%

Western City $13,773 $17,727 $3,953 29%

Eastern City $16,326 $20,637 $4,311 26%

North $9,924 $12,345 $2,420 24%

South $7,957 $9,306 $1,349 17%

Total $67,396 $83,748 $16,353 24%

Source: PwC 2018, Census 2011, 2016 and SGS Economics and Planning 2018

TABLE 24: EMPLOYMENT LANDS “PER JOB” GVA ($)

District 2011 2016

Central City $129,317 $151,608

Western City $114,676 $127,501

Eastern City $136,920 $156,292

North $136,667 $154,450

South $116,809 $130,517

Total $127,110 $144,681


Patterns emerging from the precinct specific spatial distribution of GVA (as total $ of output) are showing strong clusters between Alexandria-Mascot and Port Botany, Silverwater, Prospect Reservoir, the M5-M7 intersection and high output outliers in St Leonards and Brookvale. This is undoubtedly related to the number of jobs taking place in the precincts, following similar trends, but is also associated to the productivity of labour (by industry) and productivity of capital (explaining why two precincts with the same number of jobs have different GVA outputs).

19 https://www.investopedia.com/terms/g/gross-value-added.asp 20 ($m) – millions of dollars

https://www.investopedia.com/terms/g/gross-value-added.asp


FIGURE 24: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS GVA AT 2016 ($M)


From an industry perspective, the largest value added is generated by the Industrial group across all district but the North, where Knowledge Intensive is the leading category.

TABLE 25: EMPLOYMENT LANDS GVA PER INDUSTRY GROUP AT 2016 ($M)

District Knowledge Intensive Health and Education Population Serving Industrial Total

Central City $4,923 $897 $6,166 $11,748 $23,734

Western City $3,140 $1,039 $4,941 $8,607 $17,727

Eastern City $6,045 $1,054 $5,414 $8,124 $20,637

North $4,473 $1,527 $2,987 $3,357 $12,345

South $1,748 $555 $2,678 $4,324 $9,306

Total $20,329 $5,072 $22,187 $36,160 $83,748

*excluding the T – Inadequately Described ANZSIC Division

Source: PwC 2018 and SGS Economics and Planning 2018


However, by bringing the GVA outputs to a per job scale and aligning the context (i.e. making the precincts more comparable irrelevant of job number) a different story starts to reveal itself. The Eastern City District exhibits the highest per job productivity amongst the districts, with particular clusters occurring around Sydney/Parramatta CBD, the Airport (similar to the clustering of “diverse” precincts – i.e. Employment Lands with a variety of industries) and in the vicinity of Prospect Reservoir. A slight correlation between the precinct’s size and per job GVA is also noticed, smaller precincts (<2.5 Ha) having a lesser output compared to the LGA average.

TABLE 26: EMPLOYMENT LANDS “PER JOB” GVA ($) BY INDUSTRY GROUP AT 2016

District Knowledge Intensive Health and Education Population Serving Industrial Total

Central City $208,768 $91,592 $136,041 $173,052 $151,608

Western City $181,083 $86,334 $107,808 $156,399 $127,501

Eastern City $219,920 $94,390 $135,016 $173,216 $156,292

North $243,454 $102,296 $115,558 $198,885 $154,450

South $210,638 $83,166 $111,637 $157,938 $130,517

Total $213,810 $92,903 $122,512 $168,911 $144,681

*excluding the T – Inadequately Described ANZSIC Division

Source: PwC 2018 and SGS Economics and Planning 2018

FIGURE 25: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS GVA ($ PER JOB) AT 2016

Source: PwC 2018, Census 2016 and SGS Economics and Planning 2018


FIGURE 26: EMPLOYMENT LANDS GVA ($ PER JOB) COMPARED TO LGA AVERAGE AT 2016



In analysing the potential relation between productivity and proximity to centres, other spatial factors seem to be more influential on the amount of generated GVA, such as nearby major infrastructure and size/age of precincts. Nonetheless in the case of Metropolitan Centres (Sydney/Parramatta CBD) there seems to be an increase in the per job GVA outputs of the surrounding precincts.

Areas experiencing the most significant growth of GVA follow similar patterns to the current playing field and are primarily linked to the precincts overall job growth. The highest number of precincts with negative growth values are located in the 15-30km radius from the CBD, with certain outliers in the nearer vicinity. If observed from a GVA per job perspective, the increase of productivity is taking place in Sydney’s Inner West, Kogarah, Campbelltown-Camden, Hornsby and other scattered locations with the majority of precincts West of the A3 undergoing a decrease, in particular around Bankstown.

FIGURE 27: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS GVA GROWTH 2011-2016 ($M)



FIGURE 28: SPATIAL DISTRIBUTION OF EMPLOYMENT LANDS GVA GROWTH 2011-2016 ($ PER JOB)


Returning to the discussion of Sydney’s manufacturing triangle (Liverpool-Blacktown – Parramatta), there is a clear pattern of lower levels of productivity, particularly compared with the East and West. This could be due to the Eastern City District precincts supporting a more diverse range of higher value or knowledge intensive industries and the West providing new, purpose-built facilities to support the growth in freight and logistics and manufacturing demand. The precincts in the manufacturing triangle are often older stock, typical of local industrial precincts. Their characteristics may not be fit for purpose for newer, higher value uses and so they witness a decline in GVA per job.

This does not, however, mean that they are not valuable. These precincts play an important role in supporting urban services and other locally-servicing industrial uses and highlight why GVA as an absolute measure of value has its limitations.


Limitations

Measuring productivity can be done by examining the outputs of individual factors of production or the holistic production process of a firm. The challenge of measuring productivity on a factor by factor basis is the substitutability of factors i.e. high productivity caused by labour can be substituted by machines and vice versa making the productivity of each factor ambiguous.

To overcome the substitution effect, we use a multifactor measure of productivity that captures how well a firm uses the various factors of production (inputs) to create a unit of output. Such a measure allows a reliable understanding of the production capabilities of a firm. While a multifactor approach overcomes some of the limitations of single factor productivity it is useful to examine factors of production in isolation to determine which factors are the source of higher/lower aggregate productivity.

INSIGHTS

▪ Overall Employment Lands GVA output of $83 billion ▪ Increase of productivity over two Census periods (+$16 billion) ▪ GVA per job $145,000 ▪ Per job productivity also intensifying (+$18,000) ▪ Clusters of high per job GVA around:

▪ Sydney/Parramatta CBD ▪ Airport ▪ Vicinity of Prospect Reservoir

▪ GVA represents one metric of productivity (multiple factors influence GVA such as productivity of labour and capital)

FURTHER STEPS

▪ Understand GVA from both aspects (labour vs capital) ▪ Measure productivity (value) from various perspectives

▪ Role in value chain ▪ Broader economic and social value

▪ Corelate GVA with:

▪ (Precincts) industry diversity ▪ Proximity to infrastructure ▪ Proximity to major centres


6.4 Nature of zones From a structural point of view, the make-up of Employment Lands is quite diverse. Although the most predominant land uses are industrial (IN1-IN3) there are still notable amounts of business lands (B5-B7) and limited quantities of other zones (possibly due to rezonings). The business make-up of the different zones is also varied. The largest number of businesses in all land uses is within the Knowledge Intensive group (might be to the smaller number of employees per business), closely followed by Population Serving and Industrial groups.

Zone specific data is showing several findings. IN1 zones host the largest amount of businesses, but are also most prevailing overall, while IN3s have the greatest variety-mix. B zones have a slightly bigger focus on Knowledge Intensive businesses.

TABLE 27: BUSINESS COUNT IN DIFFERENT EMPLOYMENT LAND ZONES AT 2018

Zone Knowledge Intensive


Population Serving

Industrial Total - Zone

IN1 8,672 340 5,063 5,615 19,690

IN2 4,618 301 3,341 2,684 10,944

IN3 177 5 156 159 497

IN4 52 1 15 23 91

B5 871 59 652 408 1,990

B6 754 47 323 237 1,361

B7 690 42 475 381 1,588

Other 121 9 87 70 287

Total 15,955 804 10,112 9,577 36,448

Source: REMPLAN 2018 and SGS Economics and Planning 2018

TABLE 28: SPLIT OF BUSINESSES IN DIFFERENT EMPLOYMENT LAND ZONES (%) AT 2018



Population Serving


IN1 44% 2% 26% 29% 100%

IN2 42% 3% 31% 25% 100%

IN3 36% 1% 31% 32% 100%

IN4 57% 1% 16% 25% 100%

B5 44% 3% 33% 21% 100%

B6 55% 3% 24% 17% 100%

B7 43% 3% 30% 24% 100%

Other 42% 3% 30% 24% 100%


TABLE 29: SPLIT OF BUSINESSES IN DIFFERENT EMPLOYMENT LAND ZONES (PER HA) AT 2018



Population Serving


IN1 0.96 0.04 0.56 0.62 2.18

IN2 1.92 0.13 1.39 1.12 4.56

IN3 0.20 0.01 0.18 0.18 0.57

IN4 2.59 0.05 0.75 1.15 4.53

B5 1.74 0.12 1.30 0.82 3.98

B6 2.81 0.18 1.20 0.88 5.07

B7 2.40 0.15 1.65 1.33 5.53

Other 0.17 0.01 0.12 0.10 0.41


6.5 Urban services Overall there are around 10,000 Urban Services businesses in Employment Lands (28% of all businesses). These are outlined in Appendix 3. The highest number are located in IN1 zones, with the greatest per hectare (Ha) rates in IN2s and B7s, alluding to potentially smaller businesses (requiring less space) locating in these zones. From a district perspective there is a higher intensity of urban services in Employment Lands in the North District and Western City.

Compared to the “other” lands21 (outside of Employment Lands), the per Ha ratio is close to equal at a Metropolitan level. However, the overall business count shows the opposite, which is expected considering the overall area of “other” lands is much larger but also points to the possibility of micro businesses locating outside of Employment Lands.

TABLE 30: RATIO OF URBAN SERVICES IN EMPLOYMENT LANDS TO “OTHER” LANDS AT 2018

District Employment Lands – Count

"Other" Lands - Count

Ratio - Count

Employment Lands – per Ha

"Other" Lands – per Ha

Ratio – per Ha

Central City 2,481 53,331 1:21 0.73 1.37 1:1.89

Western City 2,589 50,594 1:20 0.67 0.37 1:0.55

Eastern City 1,534 53,414 1:35 1.05 3.85 1:3.66

North 1,367 31,097 1:23 2.57 1.10 1:0.43

South 2,142 41,506 1:19 1.40 2.83 1:2.02

Total 10,113 229,942 1:23 0.94 0.99 1:1.06


TABLE 31: URBAN SERVICES IN DIFFERENT EMPLOYMENT LAND ZONES AT 2018

Zone Count % per Ha

IN1 5,557 55% 0.62

IN2 3,133 31% 1.31

IN3 157 2% 0.18

IN4 9 0% 0.45

B5 532 5% 1.06

B6 239 2% 0.89

B7 406 4% 1.41

Other 80 1% 0.11

Total 10,113 100% 0.72


At a precinct level, a higher intensity of urban services is evident in Sydney’s Inner Suburbs, along the Parramatta-Hurstville course and the North District.

21 All zones excluding IN1-IN4, E1-E4, RE1 & RE2, RU1-RU4, SP2, W1 & W2, UL, DM


FIGURE 29: URBAN SERVICES IN EMPLOYMENT LANDS (PER HA) AT 2018


INSIGHTS

▪ Mixture of businesses locating in precincts:

▪ Largest count in IN1 ▪ Highest density in IN2 ▪ Greatest variety in IN3

▪ High density of Urban Services businesses in Employment Lands (close to 1:1 ratio compared to all other lands)

▪ Greatest concentration of Urban Services in IN2 zones and North District

FURTHER STEPS

▪ Explore relationship between Urban Services and diversity of precincts ▪ Investigate structural changes at zone level ▪ Understand the impact of planning controls on business location


APPENDIX 1 – DATA THREATS (PRECINCT LEVEL)

The following table tries to identify various data “threats” that have been noted during the development of the database. They have been categorised into four major groups:

▪ Internal conflict – more than one precinct in geography. See subheading Precinct conflicts in Chapter 2

▪ Historical change – pointing to precincts intersecting geographies (eg. DZN, TZ) which extent has changed between the two Censuses (2011 – 2016). See subheading Changes of geographies over time in Chapter 2

▪ Major Facility Spill – identifying the number of major “employment” facilities sharing the same geography as the precinct. See subheading Neighbouring land use spill overs in Chapter 2

▪ Health (General Hospital, Children’s Hospital, Psychiatric Hospital) ▪ Retail (Shopping Centre) ▪ Education (Primary School, High School, University, Combined Primary-

Secondary School)

▪ Other Spill – determining the ratio (% of total area) of other major employment land uses (B1-B4, SP1 and SP3)22 in the shared geography. See subheading Neighbouring land use spill overs in Chapter 2

Overall, 232 out of the 283 precincts have some sort of threat identified, leaving only 51 precincts as “reliable”. The average Other Spill threat is 12% across Sydney.

TABLE 32: SUMMARY OF PRECINCT DATA RELIABILITY AND THREATS

Major Facility Spill

Internal Conflict

Historical Change

Health Retail Education Other Spill

Precincts with threat 94 21 8 31 92 144


TABLE 33: PRECINCT DATA RELIABILITY AND THREATS

Major Facility Spill

ID Name District Internal Conflict

Historical Change

Health Retail Education Other Spill

62 Alfred Street, Parramatta Central City Y 13%

46 Annangrove Central City 1 2%

210 Arndell Park Central City

19 Auburn (Cumberland Industries) Central City Y 29%

168 Auburn (Queen St) Central City 1 1 1%

23 Auburn West Central City Y

133 Blacktown Rd (St Martins) Central City 1 37%

22 B5-B7 zones were intentionally excluded as they are often found in Employment Lands.


128 Bonds Spinning Mill Central City 8%

312 Box Hill Central City

262 Camellia/Rosehill Central City Y 4%

276 Castle Hill Central City 11%

250 Church St, North Parramatta Central City 2%

116 Church Street, Rookwood Central City Y 2%

226 Clyburn Central City Y Y

207 Clyde Central City Y

9991 Cudgegong Road Stabling Yard Central City 2%

37 Eastern Creek Central City Y

65 Ermington Central City 1 3%

38 Former Wonderland Central City Y

80 Girraween Central City

105 Glendenning Central City

317 Glenorie Central City 1 1

163 Gregory Place, Harris Park Central City Y 13%

260 Greystanes Central City

261 Greystanes Central City Y

119 Guildford South Central City

182 Guildford/Merrylands Central City 1 2%

252 Homebush Bay Central City 34%

223 Huntingwood Central City Y

57 Huntingwood (WSEH) Central City Y

174 Huntingwood West Central City Y 15%

13 Kings Park (Blacktown North) Central City 1

185 Lidcombe East Central City Y

256 Lidcombe South Central City Y 13%

255 Lidcombe West Central City

242 Marsden Park Central City Y 6%

205 Minchinbury Central City 1 10%

228 Mount Druitt Central City 1

42 New Street West Central City Y

6 North Dunheved Central City Y 2

197 North Rocks Central City

86 Old Windsor Road Central City

158 Old Windsor Road, Northmead Central City

97 Pendle Hill Central City 4%

44 Pharmacia Central City

98 Prospect Central City 1 49%

243 Quarantine Station Central City Y 4%

91 Railway Street, Rookwood Central City 96%

136 Regents Park Central City

220 River Road West, Parramatta Central City Y 13%

104 Riverstone Central City Y 1

311 Riverstone West Central City Y 2

245 Ropes Creek Central City Y


215 Ropes Crossing Central City Y 2

32 Rydalmere Central City

131 Seven Hills (Blacktown LGA) Central City Y

134 Seven Hills (Parramatta LGA) Central City Y

170 Silverwater Central City

124 Smithfield, North Central City

138 South Clyde Central City

101 South Granville/Chester Hill Central City

9278 South Parramatta (Cumberland LGA) Central City 14%

9277 South Parramatta (Parramatta LGA) Central City 21%

213 South Wentworthville Central City Y 1 10%

2 The Raceway Precinct Central City Y

132 Victoria Rd Central City

76 Winston Hills Central City 1 1 5%

142 Yennora (Holroyd) Central City 1

10 Alexandria Eastern City Y 16%

60 Balmain Road Eastern City Y 4%

188 Banksmeadow Eastern City Y 1 29%

176 Bays Precinct (Glebe Island/White Bay)

Eastern City Y

Y 1%

67 Bexley Eastern City 2%

64 Bexley, Queen Victoria St Eastern City

190 Blackwattle Bay Eastern City 8%

161 Botany Eastern City 2 10%

227 British American Tobacco Site Eastern City 1 44%

93 Bushells Site, Burwood Rd Eastern City

181 Camperdown Eastern City 5%

146 Canterbury Road, Hurlstone Park Eastern City

265 Chullora Eastern City Y

71 Concord West Eastern City 1

27 Dulwich Hill, New Canterbury Rd Eastern City 1 6%

49 Flemington (Arthur St, Homebush Business Park and Mason Park)

Eastern City

2 62%

206 Flour Mill Site Eastern City 6%

272 Glebe (Parramatta Rd/Arundell St) Eastern City 2 19%

279 Hume Highway, Greenacre Eastern City Y 1 1 2%

81 Kogarah, Production Ave Eastern City

129 Lewisham, New Canterbury Rd Eastern City Y 1 6%

253 Lewisham, Old Canterbury Rd Eastern City Y 1 5%

288 Lilyfield Rd Eastern City Y 2%

189 Lords Rd Eastern City Y 1 1 9%

229 Marion/Walter St Eastern City 2%

259 Marrickville Eastern City Y 1 1 9%

258 Marrickville, Meeks Rd Eastern City Y 5%

126 Mascot Eastern City 1 11%

117 Milton St North Eastern City 1 1 48%


135 Moore St, Catherine St Eastern City Y

47 Moore St, McKenzie St Eastern City Y 1%

144 Mort Bay Eastern City 1 2%

77 Oulton Avenue Eastern City 3%

219 Parramatta Rd, btw Liverpool and Slone Sts

Eastern City Y

3%

178 Parramatta Rd, Frederick St Eastern City

147 Parramatta Rd, Haig Ave Eastern City Y 3%

17 Parramatta Rd, Mallet St, Pyrmont Bridge Rd

Eastern City

1 9%

287 Parramatta Rd/Tebutt St Eastern City Y 1 1 9%

111 Parramatta Road/Queens Road Eastern City 1 6%

39 Port Botany Eastern City Y 47%

271 Princes Hwy Frontages Eastern City Y

48 Rhodes, Leeds Street Eastern City 1%

254 Rockdale, Garnet St Eastern City Y 1 10%

88 Rockdale, West Botany St Eastern City Y 1 4%

208 Rosebery Eastern City 1 3%

160 South Strathfield/Enfield Eastern City Y

247 St Peters, Grove Street Eastern City Y 1 3%

4 St Peters, Princes Hwy Eastern City Y 6%

269 St Peters, Unwins Bridge Rd Eastern City Y 1 3%

43 Stanmore, Bridge Rd East Eastern City 14%

82 Strathfield Mail Eastern City

78 Sydney Airport Environs Eastern City Y

85 Tempe Rd, Bus Depot Eastern City 1 2%

69 Tempe, Carrington Rd Eastern City 1 4%

217 Tempe, Princes Hwy Eastern City Y

238 Turrella Eastern City

83 Victoria Rd, Robert St (East of Mullens St)

Eastern City

1 10%

106 Victoria Rd, Robert St (Former Martin Bright Steelworks)

Eastern City Y

278 Victoria Rd, Terry St/Wellington St (Carrier Site)

Eastern City

2%

24 Water Street Eastern City 1 2%

194 West St Eastern City

248 Wolli Creek Eastern City Y 73%

294 Artarmon North 2 4%

143 Asquith North

291 Balls Head Rd, Waverton North 1%

308 Bay Rd, Berowra Waters North 1

307 Berowra Waters Rd & Kirkpatrick Way, Berowra Waters

North

1

309 Brooklyn North 1 3%

316 Brooklyn Road, Brooklyn North 1

52 Brookvale North 1 4%

281 Campbell Parade, Manly Vale North 1%


225 Cromer North

280 Dural Service Centre North 1%

186 East Chatswood North

198 Forestville North 1 1%

1 Former ADI Site North

257 Gladesville North Y 4%

35 Gore Cove Terminal North 1

118 Harbord North

173 Hornsby East North 2 75%

22 Hornsby Heights North

145 Hornsby West North 59%

290 John St, McMahons Point North Y 5%

53 Lane Cove West North Y

233 Lane Cove West North 1

87 Lane Cove West (150 Epping Rd) North Y

297 Macquarie Park, Wicks Road North 32%

165 Manly Vale North 1

299 Margaret St, Woolwich North

303 McCarrs Creek Rd, Church Point North Y

298 McDougall St and Bradley St, Kirribilli North 4%

157 Mona Vale North 1 10%

84 Mount Ku-ring-gai North 1

159 North Narrabeen North

58 Pennant Hills North

305 Pittwater Rd, Bayview North

304 Pittwater Rd, Church Point North Y Y

302 Princes Lane, Newport North Y 1%

301 Queens Pde, Newport North 1 2%

300 Tepko Rd, Terrey Hills North 1

16 Thornleigh North

289 Victoria St, McMahons Point North Y 3%

164 Waitara North Y

212 Warriewood Valley North 1

92 West Ryde North 32%

166 Ashbury South 1

214 Belmore South Y 1

74 Beverley Hills South 4%

28 Blakehurst South

30 Canterbury Road, Campsie South 2 7%

241 Caringbah/Taren Point South Y 1 4%

209 Carlton South 1%

218 Chapel Street South 7%

154 Chullora South Y 32%

270 Clemton Park South 3%

9 Condell Park South

115 Croydon Park South 1%


121 Edward Dunlop Paper South Y 1 1 11%

75 Engadine (Princes Hwy) South 1 15%

113 Greenacre Bowls South Y

110 Heathcote South Y 1

211 Heathcote (Burns Rd) South Y 1

151 Hurstville South 1 11%

140 Hurstville South South 2 1%

152 Kingsgrove North South 1

95 Kingsgrove South South

314 Kirrawee South

313 Kurnell South 1

96 Lakemba South Y 1

232 Leightonfield Station South

33 Menai South 2 7%

79 Milperra South Y

240 Miranda South

20 Padstow North South 5%

51 Padstow South South 1

199 Peakhurst, Boundary Rd South

34 Penshurst South 1 6%

61 Punchbowl South

125 Punchbowl, Wattle Street South 14%

130 Revesby South Y

120 Riverwood South 1%

63 Sefton South 1 2%

203 Taren Point Bulky Goods South Y 1 28%

315 Waterfall South 1

3 West Riverwood, Wiggs Road South 2%

179 Appin Western City 1

318 Austral Western City Y

249 Bargo Western City 2

29 Blackheath Western City 2

191 Blaxland Western City

171 Blaxland (Great Western Hwy) Western City 1 1 2%

66 Bonnyrigg Plaza Western City 1 1

94 Cabramatta CBD Western City 12%

8 Campbelltown, Blaxland Road Western City Y 14%

107 Cecil Park Western City Y Y 2%

45 Chipping Norton Western City

284 Condell Park Road, Wilton Western City Y 1

99 Council Depot Western City Y

251 Cross Roads, Casula Western City 47%

216 Emu Plains Western City 13%

244 Erskine Park Western City Y 1

90 Fairfield Western City 1 76%

55 Fairfield East Western City 2 7%


224 Glenbrook Western City 1

59 Great Western Hwy, St Marys Western City 1%

234 Greystanes Western City Y 1 3%

9993 Horlsey Drive Industrial Park Western City

109 Hoxton Park Airport Western City Y Y 2%

204 Ingleburn Western City

282 Ironbark Avenue, Camden Western City 1

11 Jamisontown Western City 27%

320 Katoomba Western City 1 2

201 Kingswood Western City 5%

156 Lansvale Western City 1 9%

14 Lawson Western City 1

319 Leppington North Western City Y 1 5%

172 Leumeah Western City Y 67%

40 Little Street, Camden Western City 1

100 Macquarie Fields Western City 1 13%

293 Maldon Western City Y 1

9992 Mamre West Western City Y 7%

230 Minto Western City

9990 Moorebank Western City Y

273 Mulgrave/Vineyard Western City 6%

54 Narellan Western City 2%

267 North Penrith Western City 1

274 North Richmond Western City 1 1

5 Oran Park Western City Y 1 5%

153 Orange Grove Western City 12%

292 Picton Western City Y 1 2

15 Picton (Coull St) Western City Y 1

72 Priddle/Scrivener St Western City Y Y 3%

192 Railway Parade, Cabramatta Western City Y

103 Richmond Western City 3 1 58%

200 Richmond, Racecourse Rd Western City 3%

149 Sappho Road Western City

114 Smeaton Grange Western City Y 4%

31 Smithfield, South Western City 1 9%

141 South of Sydney Water Pipeline Western City Y

246 South of Sydney Water Pipeline Western City 1

239 South Werrington Western City Y 1

321 Springwood Western City 1%

7 St Marys Western City Y

195 St Marys Leagues Western City 1

123 St Marys North Western City Y

36 Turner Road Western City Y Y 11%

102 Valley Heights/Springwood Western City 1 1

70 Warragamba/Silverdale Western City 1

283 Warwick Farm Racecourse Western City Y Y 2%


286 Werrington Road, Werrington Western City Y 1

187 Wetherill Park Western City Y 1 4%

139 Wilberforce Western City 2

137 Windsor/South Windsor Western City 1 1%

285 Wonga Road, Picton Western City Y 1

89 Yarunga/Prestons Western City Y



APPENDIX 2 – INDUSTRY GROUPS

In conjunction with the Greater Sydney Commission (GSC), SGS Economics and Planning has categorised ANZSIC Divisions into four broad Industry Groups (also known as Broad Industry Categories – BIC). The following table illustrates the classification.

TABLE 34: INDUSTRY GROUPS

ANZSIC 2006 Division Code ANZSIC 2006 Division Title Group

J Information Media and Telecommunications Knowledge Intensive

K Financial and Insurance Services Knowledge Intensive

L Rental, Hiring and Real Estate Services Knowledge Intensive

M Professional, Scientific and Technical Services Knowledge Intensive

N Administrative and Support Services Knowledge Intensive

O Public Administration and Safety Knowledge Intensive

P Education and Training Health and Education

Q Health Care and Social Assistance Health and Education

E Construction Population Serving

G Retail Trade Population Serving

H Accommodation and Food Services Population Serving

R Arts and Recreation Services Population Serving

S Other Services Population Serving

A Agriculture, Forestry and Fishing Industrial

B Mining Industrial

C Manufacturing Industrial

D Electricity, Gas, Water and Waste Services Industrial

F Wholesale Trade Industrial

I Transport, Postal and Warehousing Industrial

Source: ABS ANZSIC 2006 Support Tool, SGS Economics and Planning and GSC 2016


APPENDIX 3 – URBAN SERVICES INDUSTRIES

The term ‘Urban Services’ is used to describe a wide range of industries that locate in cites. There is no single definition of Urban Services although it is usually used to describe industries that operate in industrial and employment zones. This study defined Urban Services as a collection of industries that enable the city to develop and its businesses and residents to operate.

In a previously prepared publication for the Greater Sydney Commission (GSC), for the purpose of regional and district planning, SGS Economics and Planning established a selection of various ANZISC 2006 Subdivisions (2 digit) and Class codes (4 digit) that constitute what is generally known as Urban Services Industries. These are set out below.

TABLE 35: LIST OF URBAN SERVICES INDUSTRIES

ANZSIC 2006 Division Code

ANZSC 2006 Subdivision Code

ANZSIC 2006 Class Code ANZSC 2006 Subdivision/Class Title

L 66 Rental and Hiring Services (except Real Estate)

N 73 Building Cleaning, Pest Control and Other Support Services

G 39 Motor Vehicle and Motor Vehicle Parts Retailing

S 94 Repair and Maintenance

C 16 Printing (including the Reproduction of Recorded Media)

D 26 Electricity Supply

D 27 Gas Supply

D 28 Water Supply, Sewerage and Drainage Services

D 29 Waste Collection, Treatment and Disposal Services

F 33 Basic Material Wholesaling

I 46 Road Transport

I 51 Postal and Courier Pick-up and Delivery Services

I 52 Transport Support Services

I 53 Warehousing and Storage Services

E 30 Building Construction

E 31 Heavy and Civil Engineering Construction

E 32 Construction Services

G 42 4230 Hardware, Building and Garden Supplies Retailing, nfd

G 42 4231 Hardware and Building Supplies Retailing

G 42 4232 Garden Supplies Retailing

Source: ABS ANZSIC 2006 Support Tool, Sydney’s Urban Services Land - Establishing a Baseline Provision, SGS Economics

and Planning 2018


APPENDIX 4 – AUDITED PRECINCTS FOR LAND VALUES AND RENTS

Chapter 5 examines rents and land prices based on Valuer General and improved capital values. As it does not contain a complete data set due to the information available at time of reporting, the tables below identify which precincts were audited to compile the data.

TABLE 36: SUMMARY OF AUDITED PRECINCTS FOR LAND VALUES AND RENTS

District Audited Total %

Central City 66 68 97%

Western City 69 70 99%

Eastern City 0 62 0%

North 13 43 30%

South 11 40 28%

Total 159 283 56%


TABLE 37: AUDITED PRECINCTS FOR LAND VALUES AND RENTS

Name LGA District

The Raceway Precinct Blacktown Central City

North Dunheved Blacktown Central City

Kings Park (Blacktown North) Blacktown Central City

Auburn (Cumberland Industries) Cumberland Central City

Auburn West Cumberland Central City

Rydalmere Parramatta Central City

Eastern Creek Blacktown Central City

Former Wonderland Blacktown Central City

New Street West Cumberland Central City

Pharmacia Parramatta Central City

Annangrove The Hills Central City

Huntingwood (WSEH) Blacktown Central City

Alfred Street, Parramatta Parramatta Central City

Ermington Parramatta Central City

Winston Hills The Hills Central City

Girraween Cumberland Central City

Old Windsor Road Parramatta Central City

Railway Street, Rookwood Cumberland Central City

Pendle Hill Parramatta Central City

Prospect Blacktown Central City

South Granville/Chester Hill Cumberland Central City


Riverstone Blacktown Central City

Glendenning Blacktown Central City

Church Street, Rookwood Cumberland Central City

Guildford South Cumberland Central City

Smithfield, North Cumberland Central City

Bonds Spinning Mill Cumberland Central City

Seven Hills (Blacktown LGA) Blacktown Central City

Victoria Rd Parramatta Central City

Blacktown Rd (St Martins) Blacktown Central City

Seven Hills (Parramatta LGA) Parramatta Central City

Regents Park Cumberland Central City

South Clyde Cumberland Central City

Yennora (Holroyd) Cumberland Central City

Old Windsor Road, Northmead Parramatta Central City

Gregory Place, Harris Park Parramatta Central City

Auburn (Queen St) Cumberland Central City

Silverwater Parramatta Central City

Huntingwood West Blacktown Central City

Guildford/Merrylands Cumberland Central City

Lidcombe East Cumberland Central City

North Rocks Parramatta Central City

Minchinbury Blacktown Central City

Clyde Parramatta Central City

Arndell Park Blacktown Central City

South Wentworthville Cumberland Central City

Ropes Crossing Blacktown Central City

River Road West, Parramatta Parramatta Central City

Huntingwood Blacktown Central City

Clyburn Cumberland Central City

Mount Druitt Blacktown Central City

Marsden Park Blacktown Central City

Quarantine Station Blacktown Central City

Ropes Creek Blacktown Central City

Church St, North Parramatta Parramatta Central City

Homebush Bay Parramatta Central City

Lidcombe West Cumberland Central City

Lidcombe South Cumberland Central City

Camellia/Rosehill Parramatta Central City

Castle Hill The Hills Central City

Riverstone West Blacktown Central City

Box Hill The Hills Central City

Glenorie The Hills Central City

South Parramatta (Parramatta LGA) Parramatta Central City

South Parramatta (Cumberland LGA) Cumberland Central City

Cudgegong Road Stabling Yard Blacktown Central City


Thornleigh Hornsby North

Hornsby Heights Hornsby North

Pennant Hills Hornsby North

Mount Ku-ring-gai Hornsby North

Asquith Hornsby North

Hornsby West Hornsby North

Waitara Hornsby North

Hornsby East Hornsby North

Dural Service Centre Hornsby North

Berowra Waters Rd & Kirkpatrick Way, Berowra Waters

Hornsby North

Bay Rd, Berowra Waters Hornsby North

Brooklyn Hornsby North

Brooklyn Road, Brooklyn Hornsby North

Condell Park Canterbury-Bankstown South

Padstow North Canterbury-Bankstown South

Padstow South Canterbury-Bankstown South

Punchbowl Canterbury-Bankstown South

Sefton Canterbury-Bankstown South

Milperra Canterbury-Bankstown South

Greenacre Bowls Canterbury-Bankstown South

Edward Dunlop Paper Canterbury-Bankstown South

Revesby Canterbury-Bankstown South

Chullora Canterbury-Bankstown South

Leightonfield Station Canterbury-Bankstown South

Oran Park Camden Western City

St Marys Penrith Western City

Campbelltown, Blaxland Road Campbelltown Western City

Jamisontown Penrith Western City

Lawson Blue Mountains Western City

Picton (Coull St) Wollondilly Western City

Blackheath Blue Mountains Western City

Smithfield, South Fairfield Western City

Turner Road Camden Western City

Little Street, Camden Camden Western City

Chipping Norton Liverpool Western City

Narellan Camden Western City

Fairfield East Fairfield Western City

Great Western Hwy, St Marys Penrith Western City

Bonnyrigg Plaza Fairfield Western City

Warragamba/Silverdale Wollondilly Western City

Priddle/Scrivener St Liverpool Western City

Yarunga/Prestons Liverpool Western City

Fairfield Fairfield Western City

Cabramatta CBD Fairfield Western City

Council Depot Fairfield Western City


Macquarie Fields Campbelltown Western City

Valley Heights/Springwood Blue Mountains Western City

Richmond Hawkesbury Western City

Cecil Park Liverpool Western City

Hoxton Park Airport Liverpool Western City

Smeaton Grange Camden Western City

St Marys North Penrith Western City

Windsor/South Windsor Hawkesbury Western City

Wilberforce Hawkesbury Western City

South of Sydney Water Pipeline Penrith Western City

Sappho Road Liverpool Western City

Orange Grove Liverpool Western City

Lansvale Fairfield Western City

Blaxland (Great Western Hwy) Blue Mountains Western City

Leumeah Campbelltown Western City

Appin Wollondilly Western City

Wetherill Park Fairfield Western City

Blaxland Blue Mountains Western City

Railway Parade, Cabramatta Fairfield Western City

St Marys Leagues Penrith Western City

Richmond, Racecourse Rd Hawkesbury Western City

Kingswood Penrith Western City

Ingleburn Campbelltown Western City

Emu Plains Penrith Western City

Glenbrook Blue Mountains Western City

Minto Campbelltown Western City

Greystanes Fairfield Western City

South Werrington Penrith Western City

Erskine Park Penrith Western City

Bargo Wollondilly Western City

Cross Roads, Casula Liverpool Western City

North Penrith Penrith Western City

Mulgrave/Vineyard Hawkesbury Western City

North Richmond Hawkesbury Western City

Ironbark Avenue, Camden Camden Western City

Warwick Farm Racecourse Liverpool Western City

Condell Park Road, Wilton Wollondilly Western City

Wonga Road, Picton Wollondilly Western City

Werrington Road, Werrington Penrith Western City

Picton Wollondilly Western City

Maldon Wollondilly Western City

Austral Liverpool Western City

Leppington North Camden Western City

Katoomba Blue Mountains Western City

Springwood Blue Mountains Western City

Moorebank Liverpool Western City



Mamre West Penrith Western City

Horlsey Drive Industrial Park Fairfield Western City

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