Warning over lack of development sites in inner Sydney
Rare parcels of land in inner-city Sydney have been snapped up to become residential estates, but developers and real estate agents warn it’s still not enough to stem the urgent demand for housing.
The former Cyprus Community Club site, which sits on almost one hectare in Stanmore, was bought by developer Conquest this month. Conquest has already lodged plans with the NSW government’s Housing Delivery Authority for a $900 million residential and retail project set to include 500 apartments.
The authority was given the power in January this year to fast-track applications for housing developments declared as state significant so the government can meet its ambitious goal of building 377,000 new homes by 2029.
It has so far approved 27 projects that account for 6924 new homes with a further 65 applications for more than 19,000 homes currently being assessed.
Despite these measures, industry figures say there just aren’t enough sites available for development.
The restricted supply meant Cushman and Wakefield agent Kieran Tsipidis was swamped with local and global interest in the Stanmore site.
“This was the best development site in inner-Sydney – full stop,” he says. “We were inundated with proposals. The depth of demand reflects just how starved the market is for quality, scalable residential opportunities.”
“It’s a win for the buyer, a milestone for the community, and a wake-up call for policymakers: Sydney needs more sites like this unlocked if we’re serious about solving the housing crisis.”
Further west in Five Dock, developer Deicorp has plans for a 1200-new home project on a site it bought in 2023 for $260 million. The company will lodge a state significant application for what it calls the Kings Bay Village development.
The release of housing in the area, including affordable properties, is poised to make real estate more accessible to average home buyers, says Robert Furolo, executive manager of corporate communications at Deicorp.
“All across Sydney, there is strong demand for well-located homes,” he says. “But in areas like Five Dock, for example, the median house price is more than $2.5 million.
“Younger couples and families who want to live in these areas are desperate for properties that have all the benefits of the area but are financially more attainable.
“Our Kings Bay Village project will deliver nearly 1200 new homes, including nearly 220 preserved as affordable housing. This will be huge game-changer for the supply of homes in the area.”
The market desperately needs more sites for residential development, including more mid-rise projects under the NSW government’s Missing Middle push, Furolo says.
“Unfortunately, there are not many development-ready sites coming onto the market in areas where development is feasible,” he says.
“Developers are trying to assemble sites but expectations on price from existing owners means it can be difficult to make projects work. The recent planning reforms for the missing middle have been positive, but still needs some tweaks to help the sector deliver the new homes we all want to see.”’
The release of large parcels of land are rare in inner-Sydney, but when they do become available, they are pounced on.
Last year developer DASCO bought a 19,486-square-metre site at 903-921 Bourke Street, Waterloo, from developer Dahua Group. Planning is underway for the former industrial site to become a six-building mixed-use estate that includes 373 apartments.
