- The city to become technology and life sciences hub
- Sydney has one of the fastest population growth rates in the developed world
- Will require over 1 million more square metres of industrial and logistics space
Sydney is expected to become a global technology hub by 2030, as the city continues its post-pandemic recovery.
Visions of a Jetsons’ future will become fully entrenched, CBRE’s Future Sydney research report found the harbour city can expect augmented reality to be central to the retail experience, and warehouses to home and harness the latest robotics.
Sydney can also expect to become clearer and greener, according to the report.
“As Australia continues to emerge from the pandemic, Sydney’s position as a global gateway city and investment hub is firmly back in focus and the outlook is positive across all the major commercial property asset classes,” said CBRE’s NSW Executive Managing Director Andrew Roy.
“At a more fundamental level, Sydney is expected to be at the forefront as ESG considerations, consumer expectations and technological advancements reshape the property industry and investor decision-making.”
The city can also be expected to be a life sciences hub, aided by the rise of technology-related businesses and the city’s competitive advantages.
Fastest in the world
Population growth for Sydney is expected to be one of the highest in the developed world, according to CBRE’s report.
Sydney’s population is expected to grow by 8.4% between 2020 and 2030.
Future Sydney report author Sass J-Baleh said this growth, fueled by the return of net overseas migration, will underpin significant demand shifts that will help reshape the market.
“Population growth alone will drive demand for an estimated 450,000 sqm of office floor space, one trillion dollars in discretionary and non-discretionary retail goods and 2.3 million square metres of industrial & logistics floorspace between now and 2030,” said J-Baleh.
Across the 2020 to 2030 period, Sydney’s investible universe across the major commercial property asset classes (office, industrial and retail) is expected to grow by 26% to $464 billion.
“Government allocations to infrastructure will be another key Sydney growth driver, with numerous key infrastructure projects underway or in the planning stages. This will support Sydney’s population increase, create efficiencies across the freight network, and better integrate the CBD with the Western Sydney Aerotropolis – improving accessibility and livability,” J-Baleh said.
Online shopping changes landscape
The ongoing e-commerce boom is also expected to “redefine” the Sydney property landscape. CBRE forecasts the NSW e-commerce penetration will increase from 15.5% to 26% by 2030. The increases in demand will likely see the need for another 1.2 million square metres of industrial and logistics space in Sydney.
The competition will likely continue to be tight, mid-last year prices for a 460 sqm parcel of land in Botany, mere minutes from Sydney Airport and the Sydney CBD, sold for $1,350,000, which works out to around $2,925 per square metre.
For more reading about logistics and the online marketing boom, click here.
