Pandemic pain: One in four properties in Sydney’s ‘China town’ sitting empty during Covid

Businesses in Sydney’s “China Town” precinct in Haymarket have struggled during the pandemic. Picture: John Grainger

Parts of Sydney’s Chinatown precinct have turned into a ghost town during the pandemic due to the CBD workforce staying at home and the lack of students and tourists to support businesses.

Close to one in four commercial properties in the precinct and the wider Haymarket area were reported vacant in November, up from an already high 8 per cent in April, Ray White data showed.

Eighty-one of the 312 spaces recorded in the real estate group’s Asian Investment Services retail survey were recorded as empty.

Ray White Commercial head of research Vanessa Rader said the closure of larger Chinatown restaurants was a major driver for the sizeable uptick in vacancies.

The famous Golden Century restaurant on Sussex St in Haymarket went into administration earlier this year. Picture: Toby Zerna

“Specialised food together with restaurants and cafes are one of the largest types to rationalise space,” Ms Rader said.

“Services tenants, which (were) road blocked during lockdown and unable to trade, such as hairdressers and beauty services, have shut doors, now representing 14.23 per cent of space.”

Ray White Commercial Asian Investment Services director Victor Sheu said the Chinatown market had been struggling, with long-term attractions such as Golden Century nearing permanent closure.

“Commercial market in Haymarket and Chinatown has slowed down significantly throughout Covid,” Mr Sheu said in a Ray White release.

“This is due to the lack of overseas students as well as tourists that form the foundation of the Haymarket core — they acted as a very high percentage of overall retail expenditure.

View of The Exchange building in Haymarket, Sydney. Picture: NCA NewsWire

“With the majority of the CBD workforce working from home and not returning to the office until 2022, night-life and dining precincts are still missing their core income source.”

Ms Rader said there would still be some opportunities for landlords despite these woes.

“We have witnessed demand for investment stock, notably in the sub $2 million price range, across Sydney this year,” she said.

Mr Sheu said activity in the Haymarket precinct had started to pick up slightly in recent months.

“This can be seen in both the number of people in the precinct as well as leasing activities in both office and retail,” he said.

“However, this market is unlikely to fully recover until international borders open … and more importantly when China removes their heavy quarantine regulations for returning tourists.”