The Threat to Sydney's Chinatown: A Concern for Chinese Australians' Cultural Haven

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Passing through Chinatown’s bright red ceremonial gates can feel like stepping into another world.

Millions are drawn to the iconic Sydney precinct each year to experience its offering of diverse, affordable and authentic Chinese food and culture.

But its jumble of tiny shops, brusque eating places and pungent smells have a separate appeal for many Chinese Australians who have embraced it.

Rather than offering an entry to the exotic, it’s a place where some Chinese Australians have felt at home — in a country that has, at times, made them feel very unwelcome.

Although Chinatowns around the world are considered ‘foodie’ destinations and tourist attractions, Dr Alexandra Wong says many of them — including the one in Sydney — originally formed as a “refuge from racial discrimination”.

Wong, a research fellow based at Western Sydney University’s (WSU) Institute for Culture and Society, says before the area was known officially as Chinatown, it was a place where up to a third of Chinese migrants in Australia lived.

Chinese people began arriving in Sydney as early as 1818, and the site in Haymarket was their community hub by the 1920s.

It was where they bought and sold produce and rare goods, played mahjong, socialised, practised their religion, saw travelling martial arts and opera troupes, and accessed services to send money home.

The rise of a more tourism-focused Chinatown, including the creation of the nearby Chinese Garden of Friendship, coincided with .

Chinatown became a kind of symbol of Australia’s multiculturalism.

Dr Alexandra Wong, Western Sydney University

The ceremonial gates — now symbolic of the district — were erected in 1980 when the area was revamped to make it look more “exotic” and appealing to visitors, as its Chinese residents began relocating to more affordable suburban areas.

People walking through red Chinese ceremonial gates.

According to Destination NSW figures, 43 per cent of international visitors to Sydney visited Chinatown in 2023. Source: AAP / Steven Saphore

The facelift worked, and tourism has been a big driver of traffic to the area ever since — Chinatown was one of Sydney’s top 10 tourist destinations by 1990.

In 2023, 43 per cent of international visitors to Sydney visited Chinatown, according to Destination NSW figures.

The most recent data for the year ending September 2024 ranked Chinatown as Sydney’s fifth most popular destination, attracting over three million overnight international visitors.

But despite Chinatown’s shift in focus to tourism, the precinct has maintained an intangible appeal for many Chinese Australians.

‘A powerful feeling’

Kevin Cheng, 35, was born in Taiwan but moved to Australia when he was three years old and grew up in Sydney’s north-west suburb of Eastwood.

He says Chinatown didn’t have special significance for him until after he finished university when a newfound interest in Chinese Australian history gave him a fresh perspective.

It was quite a revelation for me to learn about the long history of Chinese Australians in Australia … I wasn’t taught about it in school.

Kevin Cheng, Soul of Chinatown

“I never struggled with my identity, but I never thought there was a place where we as Chinese Australians, or Asian Australians more broadly, that belonged to us … that we identify so strongly with.”

Cheng says walking along Chinatown’s main strip on Dixon Street now invokes a unique sense of belonging.

“It’s quite a powerful feeling, I can’t quite put my [finger] on what it is,” he says.

“[But Chinatown’s] got that history and significance and I think for me that was quite powerful and influential.”

Professor Jing Han, director of the Institute for Australian and Chinese Arts and Culture at WSU, says Chinatown’s long history is what sets it apart from other areas that are also hubs for Chinese food, such as Chatswood, Burwood and Hurstville.

A brightly lit shopping district with a sign reading 'Burwood Chinatown'.

Burwood’s Chinatown has become a popular spot for Chinese food. Source: AAP / Dean Lewins

“There is heritage — [the buildings and gates] — all these things cannot be replaced, and it cannot be substituted,” Han says.

Wong agrees and says Chinatowns built more recently to attract tourists or Chinese investment — such as one completed in 2014 on the Gold Coast — have struggled to emulate Sydney’s success.

But even Sydney’s Chinatown must continue to evolve amid the pressures of gentrification and changing consumer trends.

Chinatown in decline

This weekend, Chinatown will host some of Sydney’s major Lunar New Year celebrations, including displays of lion dancing and a street festival, but concerns remain about whether it can maintain its relevance as time goes on.

Even though throngs of people can still be seen in Haymarket, especially on Fridays for its long-standing night markets, it’s hard to ignore the empty shops and tired-looking restaurant facades peeking out between the temporary market stalls.

The COVID-19 pandemic hit the area hard — — and some of its most famous restaurants, including Marigold and Golden Century, have since closed.

While visitor numbers improved after lockdown measures lifted, they had still not returned to pre-pandemic levels as of 2022, according to the most recent analysis available.

The City of Sydney says Chinatown’s reliance on international students and tourists means the recovery has taken longer and lagged behind the wider CBD. In 2022, activity levels in Haymarket were still only at 65 per cent compared with 2019 levels.

An economic study of the area commissioned by the council found the vacancy rate in 2022 was very high, at 18.3 per cent, while other parts of central Sydney were hovering around 6.9 per cent. (A rate of 3-5 per cent is considered “healthy”.)

Chinatown’s Friday night markets are popular. Source: Supplied

The centre of Chinatown, around Dixon Street, has been particularly affected.

“If this persists, Haymarket’s vacant space will threaten the retail future of Haymarket as visitor perceptions become ingrained,” the council noted in its Haymarket and Chinatown revitalisation strategy released in December.

There are other factors for the decline too, including competition from suburban precincts like Burwood, which have improved their food and retail offerings.

Seeing Chinatown’s contraction during the pandemic inspired Cheng to co-found the not-for-profit organisation Soul of Chinatown in June 2021, which has helped spearhead events like the Neon Playground festival to bring people back to the area.

Chinatown was becoming a ghost town … [and] we wanted to tell stories of Chinatown [and its] businesses or organisations that hadn’t had their stories told.

Kevin Cheng, Soul of Chinatown

Three Asian men standing in front of red Chinese ceremonial gates.

Kevin Cheng (centre) co-founded Soul of Chinatown with other Sydney locals, Hayden Wong and Peter Wong, to tell the stories of Chinatown and push for its revitalisation. Source: Supplied

Soul of Chinatown is one of a number of organisations — along with the Haymarket Chamber of Commerce and Haymarket HQ — that are now part of a wide-ranging effort to revitalise the precinct.

How can Chinatown maintain its identity?

Like many areas of Sydney, Chinatown is at risk of gentrification, which some believe could threaten the character of the area and its future.

The planning controls designate Haymarket and Chinatown as a ‘special character area’ with low building heights.

But at least two high-rise buildings have been proposed around its southern border and there are concerns more could follow.

A 50-storey development is proposed at 187-189 Thomas Street, diagonally across from the popular Chinese Noodle Restaurant, often described as the “grapes on the roof” place.

Another 31-storey development is proposed nearby, on the corner of George and Valentine streets.

People standing in front of market stalls set up in front of a building for lease.

The vacancy rate in Chinatown is notably higher than in other areas of Sydney CBD. Source: Supplied

Just outside the precinct, a proposed rezoning and major redevelopment could see a technology and innovation hub built — including tech company Atlassian’s new global headquarters — over and adjacent to the railway lines at Central Station.

Wong says taller buildings would make Chinatown blend in more with other parts of the city and lessen its distinctiveness.

She believes gentrification is one of the biggest challenges facing Chinatown. Other Chinatowns in the United States have already seen declines for this reason, especially after non-Chinese shops and franchises such as KFC and large supermarket chains moved in.

They gradually lose their Asian flavour and generally disappear; they become homogenised [as part of the] inner city.

Dr Alexandra Wong, Western Sydney University

Why do people care so much about Chinatown?

Historically Haymarket was a meeting place for Cantonese-speaking Chinese migrants from Canton — now known as Guangzhou — as well as those from Hong Kong, and was dominated by restaurants offering dishes such as sweet and sour pork.

But over the years, the type of cuisine has expanded to include many different styles of food from mainland China, including the spicier tastes of Sichuan cuisine. A separate Thai Town has also emerged around George and Campbell streets, which was officially recognised by the City of Sydney in 2013.

Han says Chinatown’s location in the centre of the city reflects its position as a meeting point for all Chinese people.

This is in contrast to suburban spots that tend to have a more specific demographic focus. For example, Ashfield is dominated by Shanghainese food — reflecting the background of many Chinese in the area. Chatswood has traditionally been popular with migrants from Hong Kong, although more mainland Chinese have settled there in recent years.

Table showing the top five most visited tourist destinations in Sydney.

Chinatown is among the top five most visited tourist destinations in Sydney. Source: SBS News

Aside from its historical and culinary significance, Wong says Chinatown provides an important entry point for Asian investment in Sydney.

She says companies will often open a business in Chinatown first to test the market for their products due to the high concentration of Chinese customers.

Its proximity to the University of Technology Sydney and The University of Sydney also makes it a convenient hub for international students who visit the area for a “taste of home”. New migrants, in general, may see it as an attractive entry point into Australia.

“I heard from a real estate agent a lot of people when they first move to Sydney will live in the Chinatown area — probably because of the language and also the culture, they feel more comfortable when they first settle,” Wong says.

Wong believes Chinatown also plays a role in maintaining good relations with China.

“We [could] say that Australia and China — at the government level — the relationship [has] declined, but we can see from the social level, there’s still a lot of Chinese international students, a lot of Chinese shops, investment … still going on,” she says.

“I think in this sense, Chinatown still plays this role as maintaining the relationship with China.”

Chinatown could look very different in the future

Han believes one of the biggest challenges in maintaining the appeal of Chinatown will be letting it evolve, but this has to happen if it’s to remain relevant.

You need to allow the evolution … and embrace it rather than say ‘Oh that wasn’t like the olden days’.

Professor Jing Han, Western Sydney University

This includes embracing the ideas of younger people in the community and allowing them to “grow tradition”, Han says.

It may also involve expanding beyond the traditional restaurant and grocery businesses the area is known for.

Wong says some of the descendants of Chinatown property owners are not interested in running restaurants. There’s debate over whether creative or innovative businesses with an Asian connection or flavour could be embraced instead.

However, feedback gathered for the council’s revitalisation strategy, found 84 per cent of those surveyed rated good food options as very important for Chinatown’s future.

“More youth orientated and speciality food and retail is in demand, alongside a vibrant urban life and experiences similar to those found in corresponding Asian cities,” the report says.

Yellow and red lanterns strung up above a busy street with neon signs along the buildings.

Feedback gathered for the City of Sydney’s revitalisation strategy revealed that 84 per cent of respondents considered good food options crucial for Chinatown’s future. Source: Getty / Buena Vista Images

The council also noted the opportunity to re-establish the precinct as a late-night destination because planning controls allow many businesses to operate 24 hours. Currently, the area appears to be most active in the early evening: Mobile phone data from 2022 shows a peak in activity between 6pm and 8pm.

The City of Sydney has recognised the area is in need of a facelift and is about to embark on a long-term $44 million revitalisation project.

It plans to upgrade public spaces — adding more trees, seats, lighting and integrated public art. The ceremonial gates, which were listed as a local heritage item last year, will also be repainted and restored. The lion sculptures will be replaced with granite figures.

Artist's impression of a revamped Chinatown with more outdoor seating and lanterns.

Artist’s impression of a revamped Chinatown in Sydney with more outdoor seating and lanterns. Source: Supplied / City of Sydney

In its strategy document, the council notes the investment will need to be accompanied by a renewal of shopfronts and is offering grants of up to $60,000 for businesses willing to match its funding.

It also plans to review planning controls to allow more neon signage similar to those popular in major Asian cities.

In order to preserve the character of the area, however, the council wants to maintain the narrow shopfronts, which is an unusual feature of buildings in Haymarket. It’s assessing whether to allow building heights to be increased from 15 metres to 45 metres (around 12-13 storeys) so renewal does not require sites to be amalgamated.

In a statement, Sydney mayor Clover Moore said consultation sessions show the community wants Chinatown to be a diverse, friendly and safe area.

“[They want] a range of food options and a streetscape that respects and celebrates the social and cultural history of the area,” she said.

What are we at risk of losing?

Han says the heritage of Chinatown, including its buildings and architecture, should be preserved for later generations.

Other aspects of Chinatown will likely need to evolve, such as the types of businesses it hosts.

If you think of Italy, if you think of Rome, and think, ‘Why are these still so fascinating to people?’, [it’s] because all those historical architectural buildings and heritages are there.

Professor Jing Han, Western Sydney University

Wong agrees and supports recent council efforts to protect significant buildings in Chinatown, including the heritage listing of the former Kwong War Chong & Company building at 82-84 Dixon Street, which was operated for over a century by people of Chinese descent.

She’s also hopeful about the potential for the proposed Museum of Chinese in Australia to preserve the history of the area and make it accessible to future generations.

A more modern Chinatown is also starting to emerge, with the imminent re-opening of Dixon House as FoodieVerse just one of many projects contributing to optimism about the precinct’s future.

“I think a lot of people are still working very hard to preserve this place.

“[If we don’t], I think we will lose a piece of history … not just for Chinese people but for Australia.”