“Never been this bad”: Vacant shops and vape stores take over Newtown’s King Street

King Street has long been a commercial hub in a state of flux. Navigating a 2.7km stretch from Broadway to St Peters Station, Newtown’s main artery has consistently mirrored the shifting fortunes of Sydney’s inner west.

A heady mix of fashion boutiques, late-night eateries, dive bars and long-standing music institutions, it has weathered waves of gentrification, changing tastes, and the ongoing tug-of-war between independent operators and rising commercial rents.

Deans Diner is the latest restaurant to close its doors along bustling King Street. Picture: realcommercial.com.au

As owner of local institution Deans Diner, Steve Martalas has witnessed countless businesses come and go over the last two decades, but has never seen as many vacant shopfronts along King Street as exists today.

“I know Newtown as well as anyone and it’s never been this bad,” Mr Martalas told realcommercial.com.au.

“The high rents certainly don’t help. Personally, our landlord has been pretty good to us, so we can’t knock him on that, but there are some other landlords on the strip who should be doing more to help small businesses by being more flexible.”

Deans Diner went out with a bang, with long lines and a DJ on its closing night. Picture: Facebook Deans Diner

Sadly, Deans Diner has become King Street’s latest casualty, with Nick Martalas flipping his last burger earlier this month.

“We had a huge closing day – DJs playing, long queues out the door, it was amazing. But after 17 years, enough is enough. We needed a change. Rent wasn’t the main reason [for closing], but it certainly didn’t help,” he said.

Mr Martalas didn’t reveal his lease terms to realcommercial.com.au, however the vacant property is has just been leased with an advertised rent of $79,000 a year plus outgoings. That might be on the lower end for King Street, but still a lot of burgers just to cover the rent.

South end struggles

While categorising businesses on King Street in May, YouTuber and Newtown local Rodney Todd clocked 27 vacant shops along the iconic strip.

An updated count this month by realcommercial.com.au revealed an increase to 33 empty shops, with the majority occurring on the southern end of King Street – which stretches from the Enmore Road intersection down to St Peters Station.

Four vacant shops stand side by side along the southern end of King Street.

Jimmy Roe, co-owner of self-serve bar Buddy’s, said the proliferation of vacant shops makes the street far less appealing for prospective business owners.

“And I feel like rent prices should reflect that. We’re doing okay at the moment, but running a business here is still tough. If we could renegotiate a better rate with our rent then it would certainly help. Especially given the lack of foot traffic in this part of the street,” Mr Roe said.

Of the five closed businesses adjacent to Buddy’s Bar, mini-golf franchise Holey Moley was one of the biggest recent losses on South King Street, permanently closing in May 2024 after seven years.

The former Sandringham Hotel, next door to Buddy’s, has been vacant for more than 12 months following the closure of putt-putt bar Holey Moley, though social darts chain Flight Club is set to move in.

Mr Roe said the loss of Holey Moley has affected his trade.

“Having such a thriving business next door was great – people would often come in for a drink after playing there, and vice versa. King Street works best when businesses are all doing well and supporting each other.”

The former Holey Moley site has been re-leased and is currently under construction, with social darts chain Flight Club set to open ‘soon’ according to its website.

From quirky to costly

Newtown has seen significant gentrification over the past decade, with median house prices rising from $950,000 in 2015 to $1.91 million as of August 2025, according to PropTrack.

Rental prices have also jumped from $750 to $940 per week in the last five years.

Buyer’s agent Henry Wilkinson, principal of Homesearch Solutions, noted an increasing number of students being priced out of the suburb’s rental market, which has historically been favoured for its proximity to Sydney University.

“Unless their parents are covering the rent, paying $300 to $400 a week for a room is too much for them to afford,” he said.

King Street has hundreds of bars, restaurants and retailers – and dozens of vacant shops. Picture: Getty

Mr Wilkinson said Newtown’s rising property prices and shifting demographics are reflected in the more upmarket boutiques and restaurants of King Street.

“A lot of businesses on the northern end, closer to the city, now cater to a higher-end clientele, while the more arty, alternative vibe has shifted towards the St Peters end where rents are cheaper.”

Nic Warnock, co-owner of Repressed Records – a Newtown fixture since 2008 – described South King Street as the suburb’s ‘bohemian’ stretch.

“It’s always been the less business-minded end, or at least it used to be. It was a place for dreamers, with less pressure, and we [Repressed] were lucky to land in Newtown at the right moment to fill a cultural niche. But property values in Newtown are so much higher now – it’s become a real challenge for anyone wanting to do something weird, creative or unique. Or basically anything that isn’t a vape shop,” Mr Warnock said.

Repressed Records sits along South King Street. Picture: Supplied

According to YouTuber Rodney Clark’s tally, there are 23 tobacco and convenience stores on King Street, while clothing boutiques currently dominate the business category with 47 stores. Many of them are transient operators, trading as pop-up vintage stores.

“That’s what a lot of empty shopfronts end up becoming,” remarked Mr Warnock. “Vape shops or faceless vintage fashion pop-ups.”

“These days it’s much harder for new businesses to establish themselves without private financial backing. I think that’s part of why there’s so much turnover – it’s hard to build something when rent and other expenses are hammering you from the start.”

A tale of two councils

King Street is divided between two council areas – the City of Sydney and the Inner West – a split which has influenced how Newtown nightlife has evolved.

Venues generally benefit from later trading hours permitted under City of Sydney rules. While the Inner West Council has rolled out seven new Special Entertainment Precincts (SEP) – which allows increased trading hours both indoors and out – the parts of King Street that fall into the Inner West Council’s boundaries currently miss out. This is despite neighbouring Enmore Road being recognised as a SEP since 2023.

Steve Martalas said the disparity in licensing laws and late-night trading hours between the two councils is “ridiculous.”

“Why does South King Street have to close at midnight on a Sunday but venues on the north side and on Enmore Road can trade much later? Why does The Pleasure Club have a 4am dispensation, but places like Buddy’s and Earl’s Juke Joint can’t get 1am or 2am licences to trade on a Friday and Saturday night? It’s bulls***. It’s old rules and regulations that I just don’t understand.”

Steve Martalas of Deans Diner and Jimmy Roe, co-founder of Buddy’s. Picture: Supplied

Jimmy Roe echoes this sentiment, noting how the different rules for each side of King Street affects foot traffic.

“When you walk out of Newtown Station of an evening, if you look left down South King Street you basically see one light box on, which is ours, especially past 10pm. Then you look down Enmore Road and up North King Street and they’re sprawled with tonnes of foot traffic and buzzing with bar after bar. That’s obviously going to dictate which way are you going to walk down and spend the rest of your night.”

The northern end of King Street, Newtown. Picture: realcommercial.com.au

Mr Roe noted that while council activations like King Street Crawl and Celebrate South King Street have helped create some awareness for businesses on South King Street, getting the strip added to the Special Entertainment Precinct would be ideal.

“We would love that – it would definitely help to revitalise South King Street. I’m not sure why both councils can’t work together to make it happen.”

Big chains vs local faves

During the daytime trade, staying profitable is proving increasingly challenging for independent quick service operators on both sides of King Street.

Over the past six months, beloved local businesses including Big Daddy’s Burger Bar, Anonymous Milkbar and Khamsa Eatery have closed their doors.

The arrival of KFC last year, coupled with the proposed opening of a McDonald’s, has intensified competition. Quick-service favourites and Newtown staples like Clem’s, Broaster Chicken and Gami have all voiced concerns about the growing presence of major chains.

Clem’s chicken has been serving customers along King Street since 1982. Picture: realcommercial.com.au

Steve Martalas, however, takes a measured view.

“I don’t have an issue with big chains coming in, as long as their numbers stay reasonable,” he said.

“But the little guys need to come first. After 17 years on King Street, all I know is that Newtown effing rocks. There are some incredible people in this community who deserve support so they can thrive.”