Business owners who opened in one of Australia’s former top suburbs are struggling to make ends meet amid an influx of backpackers.
Randwick, located next to east Sydney’s iconic Coogee Beach, was touted as one of the top 10 most attractive suburbs in the world for property investors in 2017.
Yet just eight years later, the once-busy suburb is a shell of its former self with one real estate agent saying ‘you could shoot a gun down the main street and not hit anyone after 5pm’.
Several long-term business owners along the suburb’s main street, Belmore Street, blame the downturn on three things: high rent, limited parking and backpackers.
Owner of Tek’s Gifts & Things Yunus Chen has spent 24 years working on Randwick’s main strip and pays $60,000 every year in rent.
‘There is no business in Randwick. The rents are too high and mortgage repayments are too high,’ Mr Chen told news.com.au.
The main people who do live in the suburbs, although temporary, are backpackers who prefer to travel to nearby Coogee to spend their money.
‘They’re not going to buy things for their homes. The pubs are making a killing but that’s about it,’ Mr Chen said.
Businesses on Randwick’s main street are struggling to keep their doors open as accommodation is overrun with backpackers who spend money elsewhere
Local auctioneer and real estate agent Graeme Smedley said Randwick’s lack of shoppers has claimed one in ten businesses over the last two years.
He points the blame at Randwick City Council, saying its lack of planning has forced most new independent businesses to close within a year.
‘[Council’s] job is to help the businesses make money. Twenty-five years ago, Randwick was busy. But now other suburbs nearby are on fire and the fire has been put out in Randwick,’ Mr Smedley said.
The realtor recently found a renter for one of the suburb’s most sought-after commercial sites – formerly a gastropub, The Cookhouse.
The sandstone building was on the market for two years before it was picked up by chicken fast-food chain El Jannah.
Mr Smedley believes Covid lockdowns only worsened the suburb’s business struggles.
Even ANZ has closed its branch on Belmore Street, which Mr Smedley described as ‘the nail in the coffin’.
A spokesperson for Randwick City Council said business had slowed in the suburb due to more people shopping online and the cost of living crisis.
‘The businesses located on Belmore Road and other high streets are the engine of the Randwick City economy, strengthen our community and give Randwick town centre its unique local character,’ they said.
‘Randwick Council works with local business by supporting the business networks and by transforming our high streets into destinations; places people wish to visit and spend time and money.’
Daily Mail Australia has contacted Randwick City Council for further comment.
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