Dexus is positioned to benefit from continuing infrastructure investment, densification and growth within our major cities.
Dexus’s office portfolio is concentrated in the key Central Business Districts (CBDs) of cities around Australia which are locations our customers favour for amenity, access and business influence. Dexus’s future is closely aligned with the future of our cities.
As part of that future, both position and population are on our side. Australia has enjoyed more than 25 years of economic growth and is now benefiting from its proximity to, and connection with, growing Asian economies. As engines of economic activity, our cities are significant beneficiaries of this growth trajectory.
Population growth will also play an important role. Australia has one of the highest population growth rates in the developed world, and 75 per cent of this growth is forecast to take place in Sydney, Melbourne, Brisbane and Perth.
We are committed to playing a leading role in shaping Australian cities for the future as desirable places to live, work and play.“Darren Steinberg, Dexus Chief Executive Officer
Over the past decade, Sydney and Melbourne added close to 800,000 and 1 million people respectively: each is projected to grow to populations of eight million people by 2056, comparable to the current size of Hong Kong, London or New York.
To accommodate this growth, change is on the horizon. Australia’s city planners are now favouring higher density environments over urban sprawl. A shift to densification, will move people, businesses and capital closer to our CBDs, reinforcing them as dominant economic and employment centres.
Significant change like this requires the right infrastructure. Record levels of infrastructure development are underway across our major cities to ensure they are increasingly accessible and liveable for the population growth they are expected to experience.
Infrastructure aside, Australian cities are highly adaptive and are already evolving around this changing land use. Dexus is constantly reviewing its portfolio to realise opportunities that this presents.
Sydney’s existing central city core is land constrained being only about one-quarter of the size of New York’s Central Park.
In Sydney, we manage around 10 per cent of the developable land in the city’s core, making us an owner and manager of a large and valuable land holding in the Sydney CBD. An investment in Dexus is an investment in cities.