Southbank props up city’s economy
Southbank has become a major driver of Melbourne’s CBD economy and one of the reasons it has grown over the last decade, according to a report released in March.
Australia Uncovered, released by Southbank’s own PriceWaterhouseCoopers, reveals the only reason Melbourne CBD has experienced economic growth is because it now includes Southbank, as well as Docklands, within its boundaries.
The report compares gross output per worker between the 2000/01 financial year and the 2012/13 year.
In that time, Southbank has grown 5.8 per cent to $7.4 billion gross output. Together with Docklands’ 7.6 per cent growth to $8.9 billion gross output, it is the major factor in Melbourne CBD’s 4.7 per cent growth over the 12-year period.
The report also alludes to the fact that some of the growth in Southbank and Docklands has come at the expense of Melbourne’s traditional CBD grid.
Overall, Melbourne’s CBD remained the second highest gross economy of Australian locations with $55.31 billion, behind only Sydney CBD.
PWC economist and partner Jeremy Thorpe confirmed that the inclusion of fringe CBD areas had an affect on this report.
“While CBDs will always play a significant role, it’s the CBD fringe areas such as Southbank in Melbourne, Pyrmont in Sydney and Fortitude Valley in Brisbane where we are seeing significant growth,” Mr Thorpe said.
“Urban regeneration, strong spatial plans, development and a diverse industry mix of high value-add services are the key drivers of growth in these areas.”