Over the last five years we have seen significant growth in the residential market with some area value increasing up to 40% in the areas of Neutral Bay, Cremorne, Mosman, Milsons Point and Crow’s Nest. Unfortunally this cannot be said for the suburban office market. Hence, in mixed use zoning where developers have the choice of building residential or office on the first floor and above, the choice is made for them when you look at what new office/residential is selling for. Office sells for $4,500-$6500 and residential at $12,000-$15,000 per sqm. Whilst the residential is more expensive to build, it is clearly more profitable.

I believe local councils need to look at ways of enticing developers to build more office components within their developments because if we keep going the way we are going, there isn’t going to be any suburban offices long term. Offices will be forced to move to the City, North Sydney or Chatswood in designated commercial zones.

Once offices are turned into residential there is a trickledown effect through the local communities. Cafés that have traded successfully for breakfast and lunch need to change their models to allows for more night time trade. This changes our communities.