Plans to build 3000 new homes in Sydney’s inner south one step closer

The revamp of the Waterloo public housing estate is a step closer after the NSW government awarded the contract for the first stage of the $4 billion mega-project to a consortium led by property giant Stockland.

The government is forging ahead with plans to demolish 750 public housing properties in Sydney’s inner south and replace them with 3000 homes, about half of which will be private apartments, near the new metro rail station.

The plans for Waterloo South include 3000 dwellings and a 2.2 hectare public park next to the future metro station.

While the first tenants will probably have to move out next year, work on the project – considered the country’s largest social housing renewal – isn’t expected to start until 2027 and should take up to 15 years.

The project to rebuild the 19-hectare estate, built in the 1970s, has long been the subject of significant dispute between the state government, residents and the City of Sydney council.

Housing Minister Rose Jackson said on Friday the government had chosen Stockland, Link Wentworth Housing, City West Housing and Birribee to lead the redevelopment of Waterloo South.

The government said in December it had narrowed the shortlist of candidates to Stockland and Lendlease.

Waterloo’s concrete public housing towers, walk-up apartments and houses will be levelled and rebuilt among thousands more private apartments.Credit: Louise Kennerley

“This is another step forward in addressing the state’s housing crisis; the announcement of our delivery partners for Waterloo South means we are closer to building 1500 new and sustainable social and affordable homes,” she said.

Jackson said Homes NSW would start to negotiate contracts with the building partners to plan, design, deliver and fund the project over the next 10 to 15 years, as well as ongoing operations.

Those contract negotiations were expected to take about six months.

The process to move hundreds of existing tenants whose homes will be bulldozed had been expected to begin in mid-2024; however, the negotiations mean residents won’t be shifted until next year.

Tenants who have to move will be given six months’ notice. All residents will be able to return to the estate once it is completed.

Newtown Greens MP Jenny Leong said the plans were a “huge blow to people in this community who were promised a better deal under Labor” and would “barely touch the sides of the housing crisis”.

“The minister has had to do the most amazing rhetorical gymnastics today to explain how privatising 50 per cent of Waterloo South – which is currently 100 per cent public housing – somehow doesn’t constitute privatisation.”

Leong said 30 per cent of homes would be social housing, which was “just 2 per cent more than the Liberals’ original plans”. A further 20 per cent will be “affordable” housing and the rest private.

Social housing includes public housing and community housing run by non-government providers.

City of Sydney Greens councillor Sylvie Ellsmore lashed the renewal as an “epic fail” to deliver more public housing.

Stockland chief executive Tarun Gupta said the project would be delivered in multiple stages.

Waterloo South represents 65 per cent of the estate. The redevelopment plans include a 2.2-hectare public park next to the soon-to-open metro station.

The 30-storey Matavai and Turanga towers, as well as four 18-storey blocks, form later stages of the project.

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