$160m: the cost of motels & hotels for Sydney’s homeless

As the housing crisis unfolds, a proposal for almost 5,000 new homes is in limbo, with the site currently locked behind chains

NSW taxpayers are forking out $160 million a year for temporary accommodation, including motels and hotels, for people who would otherwise be homeless. The individuals, who are part of more than 57,000 people waiting for public housing, are a metaphor for Sydney’s housing crisis.

A woman currently living at the Liberty Plains Motel in Lidcombe told The Daily Telegraph “we are continuously shifted between locations as they try to find a permanent spot for us. Some of the people living here are families with children. They do their best to find you a room for a few weeks and then you are on the move again.”

The woman claimed to have been on the public housing wait list for more than 10 years.

One of the motels currently providing short-term accommodation to people waiting for public housing. Source: supplied

Several motels in Sydney have commercial agreements with the State Government, which are considered a last-resort option for individuals at risk of homelessness, and the cost of this measure is understood to have increased significantly in recent years.

It comes as a $1.8 billion proposal to build almost 5,000 new homes, including social housing, remains in limbo.

In 2019, Frasers Property purchased the 13 hectare site on Sturt Street, Telopea from the former Coalition government, with plans to knock down three apartment blocks and create a new precinct.

Many of the old apartments were public housing, and the final residents were relocated to other accommodation last year.

However, work is yet to begin on the new precinct, and the three unit blocks are currently sitting empty, locked behind steel fences.

The current state of the Sturt Street apartment blocks, which remain behind locked gates. Source: supplied

It’s understood Frasers Property are now attempting to renegotiate with the State Government, for a significantly better deal, arguing that market conditions have changed dramatically.

22% of the 4,700 proposed homes in Telopea are meant to be affordable or social homes.

The delay is also causing frustration within Parramatta City Council, as the new housing precinct was meant to also include a new library and community centre.

In a statement, Frasers Property claimed they had “entered into an agreement in relation to the Telopea site which includes confidentiality agreements” and as such declined to provide additional information.

An artist's impression of Frasers Property $2 billion redevelopment at Telopea. Source: supplied

Minister for Housing and Homelessness Rose Jackson said: “the stalled Telopea project is the result of the previous government’s dud deal with a private developer. The earliest public housing could be delivered under this agreement is 2029.”

“The former Coalition government allowed the site to sit vacant and idle. Expediting this project is a major priority. We are exploring all options to get this redevelopment moving.”