‘I’ve got obligations’: Minns, Moore on collision course over housing in the city

The state government is adamant Sydney’s central business district can accommodate more intensive residential development, putting it on a collision course with the city council, which warns it won’t be a silver bullet for tackling the housing crisis.

A war of words erupted between the premier and lord mayor, as Minns said he would attempt to “give peace a chance” and work with Clover Moore to boost the number of homes in the city’s core, or otherwise use the state’s planning powers to overrule her.

Sydney Lord Mayor Clover Moore.Credit: Steven Siewert

But Moore said the council’s planning controls did not prohibit dwellings in the city’s core, which was already home to 30,000 people, with another 4000 homes approved or under construction.

Minns on Friday accused the council of “effectively outlaw[ing]” apartments in the city centre, and said the City of Sydney had to do more to encourage residential development in the area. More homes would help revive the CBD’s 24-hour economy, Minns told 2GB Radio, and the government had the “laws and regulations in place already to make changes”.

“In the first instance, we’re going to give peace a chance and try and work our way through this but, if not, I’ve got obligations, as does the prime minister, to house people.”

Moore responded she was “surprised and disappointed” by the premier’s remarks as he had not raised the issue during a recent meeting when they discussed housing.

“It is incumbent on the city and state to work collaboratively in the interests of our communities, and I remain happy and eager to do that,” she said.

Minns’ push for more dwellings in the city centre underscores debate about turning empty and underused office blocks into homes following the pandemic – a move fiercely resisted by some Sydney mayors.

Moore said residential developments in the city centre were generally at the higher end of the property market, and “so this isn’t going to be the silver bullet for addressing the housing crisis”.

She said there were significant impediments in converting offices into apartments, such as plumbing, ventilation and access to sunlight.

NSW Premier Chris Minns wants more residential housing in the city.Credit: Dion Georgopoulos

“We have to ensure that the CBD balances all needs, including our desire for a bustling 24-hour economy and sufficient employment floor space.”

A City of Sydney spokesman said the council’s planning rules incentivised commercial floor space without prohibiting residential development to reinforce Sydney as a “global city for commerce”.

In the eastern suburbs, Waverley’s Labor Mayor Paula Masselos said Bondi Junction’s commercial core was under growing pressure from residential projects. She opposed more homes being built in the central zone, and said the reduction of commercial space threatened the council’s “regional centre” status, which required it to retain at least 10,000 jobs in return for funding and benefits.

“The conversion of already fully tenanted commercial buildings to even taller residential towers may well have a significant and germane impact upon this status,” Masselos said.

North Sydney Mayor Zoë Baker is protesting against a plan to turn the prominent MLC Building on Miller Street into 340 build-to-rent apartments, arguing it would be “the death knell for our CBD”.

Planning Institute of Australia policy director John Brockhoff said there was a “clear tension” between preserving the vital economic role of CBDs while also creating active, liveable places. “As with anything with planning, it’s a trade-off.”

He agreed converting office blocks into apartments was “a bit messy”.

“If you have a view that it’s a magical solution to the housing crisis, in most cases it’s going to be a really complicated process because the buildings aren’t designed for it.

“Don’t assume that converting these buildings is going to be cheap, easy, quick, or give you a product that’s affordable.”

Brockhoff said incorporating more dwellings in commercial centres should stem from research and strategic planning, rather than an ad hoc approach. He said planners had to anticipate the long-term needs of a city, and it would be difficult to recreate a financial district redeveloped with apartments.

“It would seem a ‘no regrets’ pathway to keep at least some parts of the CBD as commercial core,” he said.

Get the day’s breaking news, entertainment ideas and a long read to enjoy. Sign up to receive our Evening Edition newsletter here.