On November 8, Palmyra Police, Department of Immigration and City of Melville officials searched three massage parlours in Hulme Court.
Palmyra Police Sergeant Albert Xu said two staff members and an owner of a parlour had their visas cancelled.
City of Melville chief executive Shayne Silcox said the businesses ‘were operating in accordance’ with its by-laws.
‘A massage parlour is defined as a type of shop use in land use terms,’ he said.
‘The businesses may continue to trade.’
A neighbouring business owner, who did not want her name published, said shady behaviour had occurred in the area recently.
‘There are kerb crawlers, with men driving really slowly in the carpark,’ she said.
‘We have seen men changing in their car during the day. If you look at them, they can become abusive.
‘It is even more alarming because there are two children’s occupational therapy centres based in this area.
‘It is starting to attract an unwanted element. We are fearful it could become like a red light district.’
She said owners were also worried their properties could also be devalued.
Sergeant Xu said police had liased with business owners.
‘We understand the concerns of the business owners and will be keeping an eye on the matter,’ he said.