Business owners who opened in one of Australia’s biggest former suburbs are struggling to make ends meet amid an influx of backpackers.
Randwick, located next to eastern Sydney’s iconic Coogee Beach, was touted as one of the world’s 10 most attractive suburbs for property investors in 2017.
However, just eight years later, the once busy suburb is a shadow of its former self and one real estate agent said: “You could shoot a gun on the main street and not hurt anyone after 5pm.” .
Several long-term business owners along the suburb’s main street, Belmore Street, blame three things: high rent, limited parking and backpackers.
Tek’s Gifts & Things owner Yunus Chen has spent 24 years working on Randwick’s main drag and pays $60,000 each year in rent.
‘There is no business in Randwick. Rents are too high and mortgage payments are too high,” Mr. Chen said. news.com.au.
The main people living in the suburbs, however temporary, are backpackers who prefer to travel to nearby Coogee to spend their money.
‘They are not going to buy things for their homes. “The pubs are making a lot of money, but that’s all,” Mr Chen said.
Businesses on Randwick’s main street are struggling to keep their doors open as accommodation is overrun by backpackers spending money elsewhere.
Local auctioneer and estate agent Graeme Smedley said a lack of buyers in Randwick has claimed one in ten businesses in the last two years.
He blames Randwick City Council, saying its lack of planning has forced most new independent businesses to close within a year.
‘(The council’s) job is to help businesses make money. Twenty-five years ago, Randwick was busy. But now other nearby suburbs are on fire and the fire has been put out in Randwick,” Mr Smedley said.
The estate agent recently found a tenant 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 acquired by fast food chicken chain El Jannah.
Smedley believes the Covid closures have only worsened the suburb’s business difficulties.
Even ANZ has closed its Belmore Street branch, which Mr Smedley described as “the nail in the coffin”.
A Randwick Council spokesperson said business had slowed in the suburb due to more people shopping online and the cost of living crisis.
“Businesses located on Belmore Road and other high streets are the engine of Randwick town’s economy, strengthening our community and giving Randwick town center its unique local character,” they said.
‘Randwick Council works with local businesses supporting business networks and transforming our high streets into destinations; Places that people want to visit and spend time and money.’
Daily Mail Australia has contacted Randwick City Council for further comment.