Paddington luxury apartment plan approved despite objections over loss of affordable homes

State government backs developer Toohey Miller's $85 million project to replace 27 studio apartments with 44 units, including 11 affordable dwellings.

By LineZotpaper
Published
Read Time2 min
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The New South Wales Minns government has approved plans for an $85 million luxury apartment complex on Oxford Street in Paddington, overriding concerns from hundreds of residents, the local MP and Woollahra Council that the development would result in fewer moderately priced homes. An eight-storey building of 44 units will replace a three-storey block of 27 studio apartments and several townhouses opposite the Victoria Barracks military base in Sydney's east.

The state government cited the delivery of more than 40 well-located dwellings in approving developer Toohey Miller's proposal. Eleven of the new units will be offered as affordable housing at below-market rent for 15 years, a condition that has drawn criticism from opponents who argue it represents an overall loss of relatively affordable homes.

Independent Woollahra councillor Harriet Price, who represents the Paddington ward, said tenants at the 50-year-old apartment block approved for demolition had recently woken to the sound of a large truck delivering building materials and hoardings to the development site.

Planning documents submitted by the developer show the proposed building includes double-storey penthouses. Woollahra Council, the local MP and more than 330 residents lodged objections to the proposal, expressing concern that the replacement of 27 studios with a mix of larger luxury apartments would reduce the supply of lower-cost housing in the area.

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Analysis

Why This Matters

  • The decision highlights tensions between the state government's push for housing supply and community concerns about the character and affordability of existing housing stock.
  • It sets a precedent for how the Minns government balances developer proposals against local opposition in established inner-city suburbs.
  • The outcome affects tenants currently living in the existing block, who face displacement, and the broader Paddington housing market.

Background

Paddington is a high-demand inner-eastern Sydney suburb known for its Victorian terraces and village atmosphere. The New South Wales government has prioritised increasing housing supply to address a statewide shortage, using its planning powers to approve projects that local councils have opposed. The site sits opposite Victoria Barracks, a major Defence facility.

Key Perspectives

Developer (Toohey Miller): The company sought approval for an $85 million project delivering 44 well-located dwellings, with 11 units offered as affordable housing for 15 years. Residents, Woollahra Council and the local MP: They lodged more than 330 objections, arguing that demolishing 27 studio apartments (a form of relatively affordable housing) for luxury units would reduce the availability of moderately priced homes and alter the neighbourhood's character. Minns government: The state approved the project, citing the delivery of more than 40 well-located dwellings as a priority, overriding local objections.

What to Watch

  • Whether tenants of the existing block secure alternative housing before demolition proceeds.
  • The start date for construction and the duration of the build.
  • Potential for further legal challenges or community action against the development.

Sources

Zotpaper

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