More homes, fewer offices proposed for Parramatta’s Auto Alley redevelopment

Plans for a five-star hotel and more than 900 apartments are revving up on a former car sales yards strip, but the project has hit the brakes when it comes to generating jobs. Here’s why.

Developers propose taller unit towers and fewer offices at the former Auto Alley.

Thirteen years after plans for Parramatta’s Auto Alley redevelopment first surfaced, bolder proposals are under way for the southern part of the CBD to be transformed into a high-rise neighbourhood with more than 900 units, a Marriott hotel and a centre for artists.

The 11-storey hotel with 275 rooms is already under construction while owner-developer JQZ has gained momentum to increase the heights of two residential apartment blocks on the South Quarter project at 57-83 Church St.

Ten more levels have been proposed for building E, taking it to 32 levels, while building D will hit 42 storeys. The updated plans propose 208 extra units, pushing the number of dwellings up to 922.

The Parramatta Local Planning Panel recently recommended Parramatta Council approve the long-running and “complex” project, which the state government will ultimately determine.

The panel cited the development’s location as making it suitable for more density.

JQZ’s existing plans.

The previous proposal.

“The site’s strategic location within walking distance to two heavy rail stations and a major bus interchange is appropriate to support a higher residential density,’’ it states.

“There is a significant increase in public benefit resulting from the proposal, being the delivery of a community and creative building and public park.’’

The gateway to Parramatta was long known as Auto Alley.

Under a $15m planning agreement, the Parramatta Artists’ Studios will relocate from Granville to find a permanent home in a four-storey council-run community and cultural building, where a childcare centre could also operate.

A carpark and park, forecast to offer a “significant public benefit” and support the proposed density, are also part of the agreement.

The project ticks the boxes when it comes to reaching council housing targets of delivering 7180 dwelling homes in the next 12 years.

However, the drop in commercial space – from 40 to 25 per cent – means the project is going against the council’s goal to add 150,000 jobs to the city by 2050.

Mannequin Fiona in front of RA Motors on Auto Alley in August 2017. Picture: Angelo Velardo

It has been blamed on high commercial floorspace vacancy rates within the Parramatta CBD post-Covid.

The hotel is nevertheless expected to be an economic driver.

“The hotel development will be a key contributor to Parramatta’s visitor economy and will help service domestic and international visitors to Parramatta, Sydney Olympic Park and the forthcoming Western Sydney International Airport that is due to open in late 2026,’’ planning documents state.

“The hotel will not only generate primary jobs but will also generate subsidiary jobs through uses associated with the hotel such as catering companies, event management and corporate conferences.’’

Original plans for a supermarket to employ 213 workers were scrapped when studies of the flood-prone location wiped out that prospect.

Former developer Dyldam, which lodged the original $876m plans for the site in 2014, went into administration in early 2021.

JQZ submitted the fresh plans to the council in September. The next step is for the council to oppose or endorse the plans, which the Planning Minister will ultimately determine.

The southern section of Parramatta at the intersection of Church St and the Great Western Highway has been known as Auto Alley since the 1960s thanks to the high concentration of car sales yards.