The New South Wales government has announced a major expansion to a housing project after a significant setback in its efforts to tackle the state’s housing crisis.
On May 30, the state government said it had made changes to the Sydney Local Environmental Plan 2012 to enable more housing as part of the redevelopment of the old Sydney Fish Market site.
The change has increased the number of apartments in the project to 1,500—320 more than previously proposed.
Under the revised redevelopment plan, the NSW government will make more than half of the new fish market precinct accessible to the public, including a 1.1-hectare waterside park near the southern pylon of the Anzac Bridge.
The state government said the Sydney Fish Market project would deliver urgently needed homes for young people and families who could not afford the high housing prices in the state.
Three developers–Lendlease, Mirvac, and Stockland–have been shortlisted for the project, and are expected to submit a proposal for evaluation in July.
The government estimated that the first new homes would be completed by 2028, with more to be delivered in the next six to eight years.
NSW Minister for Planning and Public Spaces Paul Scully said the state government was removing barriers in the planning process to facilitate the construction of quality homes.
“This project is an example of that and will now provide more than 1,500 new homes for Blackwattle Bay, while also unlocking the economic and social potential of this unique part of Sydney’s foreshore,” he said.
NSW Minister for Lands and Property Steve Kamper said the government had taken action to address the housing supply shortage.
“We understand that we are facing a generational housing crisis, and we need to ensure we can deliver well-located homes close to transport, jobs and community amenities,” he said.
The Scrapped Rosehill Proposal
While the additional 320 apartments from the Sydney Fish Market redevelopment will help boost NSW’s housing supply, it falls far short of the 25,000 homes that could have been delivered through the Rosehill housing plan.
In December 2023, NSW Premier Chris Minns announced a “once in a generation opportunity” by turning the Rosehill Gardens Racecourse, located around 23 kilometres to the west of Sydney’s CBD, into a “mini-city.”
The state government proposed to buy the site for $5 billion and has been in talks with the racecourse’s owner, the Australian Turf Club (ATC), about the sale over the past 18 months.
However, in a vote held on May 27, ATC members rejected the NSW government’s proposal, with 56 percent voting against it.
The result was a significant setback for the state government’s commitment to deliver 337,000 new dwellings by 2029 under the National Housing Accord.
NSW Government Says It Has Backup Plans
While Minns expressed disappointment with the ATC members’ decision, he ruled out a forced acquisition of the Rosehill site.
“So we’ve been looking at alternative plans,” he told reporters.
“We’ve got proposals that we’re getting ready to roll out for more housing closer to the Sydney CBD.
“They’re not ready for me to announce today, and not everyone will love them, but they’re absolutely necessary for Sydney.”
Meanwhile, Opposition leader Mark Speakman has criticised the state Labor government for wasting time chasing a “mirage.”
“Chris Minns’ pursuit of the Rosehill Racecourse sale mirage wasted 18 months, delaying the 10,000 homes Camellia Rosehill Place Strategy,” he said on social media.
“[He] took his eye off the need to ease state taxes and charges, which have crippled [the] financial feasibility of new builds.”
