The City of Parramatta have announced that ground has officially broken on Australia's largest commercial property development, the $2.4 billion Parramatta Square.
Construction has commenced on tower four of the Walker Corporation’s Parramatta Square development -- which will be the workplace for more than 23,500 people by 2021, comprising 250,000 square metres of A Grade office space, retail, restaurants, bars, cafes and open space.
Jobs in the area are predicted to grow from 96,500 in 2016 to 156,000 in 20 years.
Parramatta Square, which includes four major towers, has been pitched as the urban renewal project that will transform the Western Sydney hub into Sydney's "second CBD".
Rendering of Parramatta Square Tower 4
Tower 4 is the first part of the project to kick off construction, as the NSW government has precommitted to taking 62,000 sqm of space.
The NSW Urban Development Institute have warned the Parramatta council that if they move ahead with increasing a tax on new homes they will dissuade workers from living in the city.
"If any of the 4,000 government workers want to relocate to Parramatta and buy a new apartment near their office, they will face higher house prices due to the NSW Government and Parramatta Council’s proposals to increase tax on new homes," UDIA NSW chief executive Steve Mann said.
“They are proposing $115,000 in new state and local government taxes in Parramatta [and] without more affordable housing nearby, workers face long commutes. The ‘30-minute city’ becomes harder to achieve."
Taxes on development have been hiked significantly since June. We’re going to see far fewer cranes above Parramatta if the NSW Government and Parramatta Council continue to make building new homes impossible."
GPT Group’s ‘Northern Gateway’ to Parramatta]Minister for Finance, Services and Property Victor Dominello said Walker Corporation’s 4 Parramatta Square development would accommodate at least 4,000 public service roles from 2019.
“Our long-term 62,000 square metre lease of office space will establish Parramatta as a major public sector jobs hub, providing more opportunities for those who live in the west to work closer to home,” he said.
The new building will accommodate public sector roles from the departments of Planning and Environment; Finance, Services and Innovation; and Industry. More than 1,600 of these roles will be relocating from the Sydney CBD.
Amidst tightening capital value ranges, Parramatta Square will eventually contribute part of the projected 125,000 square metres of potential new retail space destined to enter the Parramatta market over the next few years, to be developed on smaller strata lots on ground floor level within both commercial and residential developments across the Parramatta CBD.
[Related reading: Major Development in Parramatta Triggers New Retail Property Trends]“Walker and other developers are transforming Parramatta to become Sydney’s second CBD off the back of a record $10 billion worth of infrastructure investment in the area,” Walker Corporation chairman Lang Walker said.
“Parramatta Square is currently Australia’s largest commercial property development and we expect to complete this very exciting project by 2021, through the use of the country’s most prestigious architectural firms and construction companies.”
Approvals are in place for three of the four towers, with the final approval expected early 2018.