Woolloomooloo site vacant since 1989 proposed for 15 social homes

A government-owned inner-Sydney site left vacant since a failed redevelopment in 1989 is being prepared for 15 social homes, with Homes NSW aiming to lodge a development application before the end of the year.

The NSW Government announced on Friday that its initial proposal for Nicholson Street, Woolloomooloo, contains 13 one-bedroom homes and two two-bedroom homes.

The land is close to central Sydney jobs, transport and services, making it a comparatively rare opportunity to add social housing in an established inner-city neighbourhood rather than on the metropolitan fringe.

However, the announcement marks the beginning of the planning process rather than approval to build. Homes NSW has started community engagement and says it intends to lodge a development application with the City of Sydney in December.

A small project on a long-idle site

Fifteen homes will not materially change Sydney’s overall housing shortage. The significance of the proposal lies instead in the history and location of the land.

According to the NSW Government, the property has remained empty since a redevelopment failed in 1989. Returning such sites to housing can avoid the need to acquire new land and place residents near existing infrastructure, although construction feasibility and local planning requirements still need to be tested.

The proposed mix is heavily weighted towards one-bedroom accommodation. That suggests the project is designed primarily for smaller households, while the two two-bedroom dwellings would provide some capacity for households needing an additional room.

No construction timetable or completion date was announced on Friday. Costs, building height, detailed design and allocation arrangements were also not included in the release.

Readers should therefore treat the 15-home figure as an initial proposal. The final number and design may change as technical studies, community feedback and the development assessment proceed.

Residents can comment before the application

Homes NSW has opened a community survey until 30 October. It is seeking feedback about what residents value in Woolloomooloo and their views on the proposal.

The agency said responses will help inform a social impact report for the development application and may also influence elements of the design. It is separately consulting nearby residents and community organisations about the area’s heritage, character and identity.

This is engagement conducted by the proponent before the application is lodged. The City of Sydney’s formal assessment process may provide another opportunity for submissions after the development application is made, depending on notification requirements.

The distinction is useful for neighbours: comments made during the current survey will inform preparation of the project, while a later submission would address the detailed application actually put before the council.

Why established locations matter

Social housing on well-connected land can reduce the distance residents must travel to employment, health care, education and support services. It can also preserve access to an existing community for people who might otherwise be displaced from expensive inner-city areas.

The trade-off is that small urban sites can be complicated and costly to develop. Heritage considerations, construction access, neighbouring buildings and the need to make efficient use of limited land can all affect design and timing.

For the wider property market, this project will be too small to alter rents or prices in Woolloomooloo. Its value will be measured by whether a public asset that has sat unused for decades can finally deliver permanent homes.

The next concrete milestone is the proposed December development application. Until that is lodged and assessed, the homes remain planned rather than approved.

What it means for you

• The proposal is for 15 social homes, mostly one-bedroom dwellings, but it has not yet received development approval.
• Woolloomooloo residents can respond to the early Homes NSW survey until 30 October.
• A development application is expected to be lodged with the City of Sydney in December.
• The announcement will not affect local market supply immediately because no building or completion timetable has been set.