28 July 2025

Who killed Canberra City? A government’s role in its slow collapse

| By Matt Croger
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Canberra Centre entrance.

Civic must be economically vibrant day and night. Photo: Michelle Kroll.

Once a bustling hub of lunchtime crowds and office chatter, Canberra City now echoes with silence and scaffolding.

The decline has been slow but steady—first COVID, then the persistence of remote work, and now city-wide development projects, most notably the light rail.

What was once a vibrant, if not beautiful, city centre is now a shadow of itself, wrapped in fencing and uncertainty.

The promise sold to us is one of future revitalisation. But the path to that future is paved with disruption, and the government has shown little intent to support those impacted along the way.

Their unwillingness to deviate from a rigid development timeline has spelled disaster for countless businesses. There’s been no meaningful support, no strategic planning, and no recognition of the real-world consequences of their decisions.

I want to be clear: I am not anti-light rail. I am anti-implementation – specifically, the timing, organisation, and communication around this process.

Three years of disruption for a track that will extend just a few hundred metres to Commonwealth Park.

Businesses knew it was coming, and many chose not to move into the City as a result. The massive new building from Morris Property Group on City Hill sits empty, overlooking a city devoid of foot traffic. The reported 10 per cent vacancy rate for prime buildings doesn’t even account for those awaiting demolition, meaning the real figure is likely much higher.

READ ALSO Inside the plans for new light rail tunnel

COVID ripped the heart out of a workforce that was once centralised in the City. What began as a necessary shift to remote work became a preferred way of life.

Some government departments now require teams to come in only once a fortnight. While this flexibility benefits workers, it has left the City hollowed out. And in this context, the government chose to begin major construction and reduce parking availability, further discouraging visits.

Carparks near the QT Hotel, City Hill, London Circuit, and the courts have vanished due to light rail construction, land sales, and pre-construction works. A walk through the west side of the City reveals once-popular lunch spots now eerily quiet, entire buildings empty, and cobwebs covering doorways to multi-storey offices. And through all this, there has been no comprehensive plan to support the businesses affected by these decisions.

I want to acknowledge the individuals within government teams who are tasked with supporting businesses. They are communicative and empathetic but they’ve been given no roadmap with any serious chance of success.

It’s baffling that nine years after the first sod-turning ceremony for light rail, there is still no clear strategy to help those impacted. What we’ve seen instead is policy on the run, focused primarily on hospitality and nightlife, while ignoring the multitude of other businesses that once drove the City’s economy.

Hospitality is certainly among the most affected, but it’s not alone. Daytime trade has been largely ignored, with the government offering arbitrary evening parking incentives in already diminished carparks. They continue to “consult with businesses” but why wasn’t this done years ago, before the disruption began?

Our business is fortunate. Twenty-five years of relationships have allowed us to weather many storms. We have loyal clients who now travel further and tolerate access challenges to receive quality healthcare. But not every business has the benefit of decades of reputation.

READ ALSO Did influencers really make Civic attractive? There are better ways to spend taxpayer money in the City

Even we are not immune – service industries rely on local populations, and the shift of the workforce to the suburbs has had a tangible impact. Growth has stagnated. We’ve had to source other avenues of work to stay afloat. Despite maps showing nearby parking, the prevailing sentiment among clients is that visiting us is a challenge they’d rather avoid.

It’s hard to believe that after years of disruption, the government is still in promotional mode. We’re still selling the dream while pretending the damage hasn’t already been done.

If we’re only now advertising the next phase, where was the master plan from the beginning? Why wasn’t there a comprehensive strategy to support the businesses and communities affected by the first phase? Instead of learning from past disruption, we’re doubling down – still improvising, still reactive, and still leaving businesses to fend for themselves.

A city cannot survive on weekend and night-time traffic alone. It must be economically vibrant day and night.

I believe in the long-term vision for Canberra City but I worry that many businesses won’t be around to see it realised. The government must step up – not with slogans and signage, but with real, targeted support for the businesses they’ve disrupted.

The time for lip service is over. The time for leadership is now.

Matt Croger is a physiotherapist and local business owner along the light rail corridor.

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Robert Woodrow6:24 pm 29 Jul 25

I couldn’t agree more, l was astounded recently when the final route over the lake and past federal parliament was still being debated.
Surely the route was designed and finalised years ago?
For the present as a service provider in the ACT I have instructed my drivers to avoid Civic and the speed cameras if at all possible.
It’s just too easy to inadvertently exceed the 40 limits and incur astronomical fines.
I sympathise with and feel sorry for the local business owners.

Bennett Bennett6:01 pm 29 Jul 25

Online shopping, ever increasing cost of electricity, water, rates, stagnant wages, WFH, petrol, groceries, cost of living nationally, globally influenced and locally influenced. ACT Labour mismanagement of everything it touched. The public transport is a joke, massive cuts to busses to fund the Northside tram, pathetic BA and DA rates, land value sky high, no industry in ACT, the government hates any private business, all land is sacred and must be touched, the Greens and COVID. What else?

If you think high density, low speed traffic and pedestrian friendly environment kill the city, please give me an example of vibrant and successful city centre with low density, fast traffic and vast parking lots.

Perhaps the goal is to turn the CBD into one giant high density accomodation hub for people who don’t mind living in stacked boxes. Forget about small businesses. They are all being kicked out by excessive costs coupled with systematic dismantling of parking spaces – even though our public transport system is third-class at best.

I think we need to just momentarily need to stop, I need to catch my breath.
Stop the tram extension at the next junction, stop the over spending (Calvary Hospital is just fine for the moment) give the businesses time to recover, give the people their city back. Enough already!
I’m exhausted over expansion I’m never going to have anything to do with.

It’s not government planning that kills a city. It’s the unwillingness of developers to invest in diverse community offerings and high-quality public spaces that undermines their long-term prosperity. Times have changed. People won’t be drawn to places that offer nothing beyond a desk. Today’s successful developments are those that are socially conscious and community-minded.

Creating vibrancy and intensive building has killed Civic. Removal of parking, exorbitant parking fees, 40 klm per hour zone, congestion and complexity caused by tram, bikes and scooters mean that very few people ì know go to the city to shop or for entertainment now. Personally, I only go into the city when absolutely necessary to shop and lack of parking close to entertainment and restaurants means Ì go elsewhere at night. Damned shame!

So, which centre do you think is super successful in Canberra?

Capital Retro5:15 pm 29 Jul 25

Queanbeyan.

It’s a deliberate ploy – ACT Government is implementing the “15 minute community” by discouraging people from going anywhere beyond a 15 minute walk from home.

Very well written. Its such as shame to see the heart of the city being ripped out. Seemingly the Government just don’t care.

ACT government has also killed Woden. A combination of poor planning; degraded facilities; subservience to developers and total disregard for the needs of local people means that Woden Plaza is no longer accessible.

Take a look at Woden now. The vacant shops around the Grand Central Tower have been taken. The revitalization plan piloted by CIT is working, and it is only a start.

I’m sorry for the impacts on local traders, but retailers are amongst the first sectors to feel the impacts of the online revolution, which was accelerated by covid and hard times.

Everything they touch turns to …

It’s too complicated to just blame the government (though they are responsible for some of it). Lack of parking is a big problem, but so is the management of the Canberra Centre and other nearby buildings. I recently wandered around the Canberra Centre and there was nothing inherently Canberran about it. It could have been a boring shopping centre in any part of the country or any part of the world – same old chain shops you can find anywhere; selling the same old stuff you can buy cheaper via the Internet.

The ridiculous prices that Civic-based cafes charge are also part of the problem. Why go into the city, with all the traffic and parking problems to get a mediocre and over-priced version of what you can get in and suburban cafe? Workers in the city stop buying food there because they simply cannot afford to pay 25-30 dollars (or more) for lunch every day for very basic offerings. Up to $10 for bland coffee or $20 for a beer is ridiculous. I understand businesses have high overheads, but if you have to charge more than people can afford, then you have an unviable business model and blaming the government doesn’t help.

The savage speed cameras are also an issue keeping people away. Getting a massive fine while still being under the suburban speed limit hurts (and the bunk about making it safe for pedestrians is just wrong because the cameras are not at the crossing where there is the highest pedestrian use; plus the frequency the traffic lights change at that intersection makes it impossible to speed there. The location of the speed cameras is a revenue exercise.)

They don’t seem to care and the electorate keeps confirming that they don’t have to.

Sadly it was all so predictable. A government’s vision which lacked an understanding of the real world. But hey, we’re getting a $5 billion rail to nowhere and have a rainbow roundabout 🌈

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