Syd, Melb show other cities how to prosper



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If the 25 largest Australian cities were connected together, they would occupy an area half the size of Tasmania.

This megacity represents 78% of the population and would occupy 80% of jobs in Australia, while covering only 0.45% of the country's landmbad.

The figures collected in the Knowledge Cities Index are a striking indicator of the importance of cities for the national economy.

Terry Rawnsley of SGS Economics and Planning said that Sydney and Melbourne had reached critical mbad, but that other cities in the country needed to determine how good they were to thrive.

He added that the two big cities had created knowledge industries and export – oriented services that brought money abroad, such as finance, engineering and technology. higher education.

"They do not only sell products to their local residents, they have export markets, these export markets are growing, you are attracting more people to the cities and you are creating this virtuous cycle" said Rawnsley to AAP.

"Other cities need to find out what their competitive edge is."

During the mining boom, Perth was home to major mining investments, while Brisbane played a similar role in northern Australia.

Adelaide was the center of automotive manufacturing while Darwin, Cairns and Townsville relied on resources.

Brisbane is now targeting higher education, tourism in Asia and other service industries in order to become more self-reliant, while Perth is using its mining expertise to expand into Africa.

"It's really hard to know what you're good at, how to tap into national and international markets, and how to create a place with many amenities to attract people from the rest of the world?" Mr. Rawnsley said.

He added that one of the reasons Darwin struggled to keep his workers is the shortage of high quality secondary schools, which made families less likely to commit to moving out.

The success with which Hobart has benefited from its museum (MONA), a museum of old and new art of world importance, has created the kind of problems that governments usually like to have.

The city welcomes investors and migrants, as well as money for developments, but it also faces growing problems with affordable housing and homelessness.

Dr. Sajeda Tuli, a population expert at the Australian National University, who helped shape the Knowledge City Index, said prosperous cities must keep pace with their infrastructure or risk losing their benefits. competitive.

The Commonwealth Bank's global research team recently warned that rising real estate prices in Sydney and Melbourne would force workers to move too far away from jobs in disadvantaged neighborhoods, could affect the labor markets.

"We are losing some localism in these cities, housing prices are rising, local people can not keep up, they are leaving these areas," Tuli told AAP.

The report on the affordability of housing ABC has revealed that the strong demand for large urban housing will continue.

"However, it is to be feared that the price of housing, especially in the big cities, will drive people away from these cities and negatively impact the supply of essential labor," the report said. report.

"The alternative would have both economic and social consequences, as people have to travel extraordinary distances between housing that they can afford and those where their work is needed."

Rawnsley said creating more self-sustaining cities was important but difficult.

"Efforts have been made to decentralize the country for 100 years, but over the years, Sydney and Melbourne have taken over this share," he said.

Tuli said governments should consider ways to economically diversify the 25 largest cities in Australia while maintaining social inclusion.

"They occupy a total area of ​​0.45% of Australian land, but they represent about 78% of Australia's total population and 80% of its jobs," she said.

"They are the economic engine of Australia."

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