Chatswood CBD Discussion Paper

Willoughby City Council has released the Chatswood CBD Discussion Paper seeking feedback on the future of the Chatswood CBD. This opens a discussion on the potential for more residential uses as part of a mixed-use CBD.

The Discussion Paper addresses how changing economic and business trends, especially since the COVID-19 pandemic, have influenced both commercial office space demand and the need for well-located housing. The Discussion Paper contains three key sections, broadly covering the following:

Office and Retail Market Snapshot

• Office vacancy rates are currently at 20.6%, up from pre-pandemic levels of around 5%.

• There have been no major additions to office floorspace in the Chatswood CBD in the past 30 years.

• Demand for office space is increasingly focused on prime-grade, well-located, and newly fitted-out spaces.

• Chatswood remains one of Sydney’s major office markets, but landlords face challenges attracting long-term tenants.

• Retail demand in Chatswood’s key centres, such as Westfield and Chatswood Chase, remains strong, with low vacancy rates in prime retail areas.

Residential Market Snapshot

• There is a growing demand for well-located housing, especially driven by NSW Government policies permitting build-to-rent apartments.

• Chatswood CBD has a higher proportion of households renting (65%) compared to the broader Willoughby LGA (38%).

• Demographic trends highlight Chatswood as attractive to younger professionals and smaller households, with a high proportion of overseas-born residents (73%).

• The National Housing Accord aims to deliver 3,400 new homes in the Willoughby LGA by 2029.

• New developments must balance residential growth with the provision of open spaces, transport, and community services to maintain liveability.

Planning for Growth

• Council needs to balance commercial and residential development to maintain Chatswood as a thriving commercial centre while addressing housing needs.

• Build-to-rent developments offer a new rental housing option but may introduce land use conflicts with existing commercial uses.

• Key challenges include traffic congestion, infrastructure funding, and maintaining sufficient employment-generating land.

• The introduction of mixed-use developments could enhance economic diversity and urban liveability if well-managed.

• Council must explore infrastructure and public domain upgrades to support new development, including transport, utilities, and community facilities.

The Discussion Paper is open for feedback until October 27, 2024. For more information, reach out to the Beam team.