Wollongong up to 33% more affordable than Parramatta, Sydney and Melbourne for businesses
New data reveals Wollongong’s CBD is set to rival Parramatta, Sydney CBD and Melbourne CBD as the newest magnet for talent and businesses operating in the Professional Services sector.
Located just one-hour south of Sydney International Airport, the thriving city offers the lowest salary, operational and real estate costs for businesses in areas such as finance, accounting, HR, administration, and IT – when compared to Parramatta (28%), Sydney CBD (33%) and Melbourne CBD (29%)*.
The new report assessed Wollongong’s capability to attract and support a thriving Professional Services sector, finding the city to be a superior business location, outperforming competitor commercial hubs in not only lower operational costs, but also in terms of growth and staff turnover.
Mark Grimson, Economic Development Manager at Wollongong City Council comments, “Apart from our vibrant coastal lifestyle, Wollongong is undoubtedly an attractive hub for small and big businesses to establish in. Not only do local businesses have access to a constant supply of world-class University of Wollongong graduates, they are also able to tap into the 23,000 highly talented and educated commuter population.”
Contributing to the existing, substantial employment base in Wollongong’s Professional Services sector of over 5,000 people, of the organisations surveyed, each forecasted a growth of 11% over the next 12 months.
Furthermore, with a lower salary level and staff turnover rate of 8% – just under half that of the national average (19%) – Wollongong businesses with 150 seats save 69% in costs to replace frontline staff compared with the Australian average*.
Mr Grimson continues: “The outlook for our city is extremely positive, with growth forecast at 11% over the next 12 months alone. Wollongong CBD is currently home to over 26,000 jobs, with a 20% jobs increase since 2011. It has seen $1.4 billion in infrastructure investment since 2012, and boasts 70,000 square metres of DA-approved commercial space.”
Paul Bartholomew, Chief Operating Officer at Unison Outsourcing comments, “We have clients in most major capital cities. We don’t see geography as a limiting factor – technology enables you to work in a place like Wollongong and serve our clients all across the country.”
- Fifth Quadrant – Wollongong Analysis: Knowledge Services Capabilities Research Summary
- Advantage Wollongong – Business and Investment Prospectus 2019
KEY REPORT INSIGHTS
- Wollongong is the least expensive location for businesses with the lowest salary, operation and real estate costs in comparison to Parramatta (28%) Sydney CBD (33%) and Melbourne CBD (29%)*.
- Contributing to the existing sector of over 5,000 local employees, of the organisations surveyed, each forecasted growth of 11% over the next 12 months.
- With a lower salary level and staff turnover rate of 8%, half of the national average (19%), Wollongong businesses have a savings of 69% in the cost to replace frontline staff compared with the Australian average*.
- The average length of time in business within the area is 22.1 years, indicating a commitment to the location for a long-term sustainable operation.
- The top areas of performance where Wollongong is excelling for current Professional Service centres include reliable telecommunications and data links, quality of life, an attractive labour rates/wage levels, lower staff attrition/turnover rates and proximity to key staff/management.