Suburbs surrounding nine stations on the metro line are being rezoned as multi-storey housing precincts under changes the NSW government says match transport investment with housing growth. Bankstown has been earmarked for 14,000 extra homes, Punchbowl and Wiley Park for 15,000 between them, and Belmore and Lakemba for 18,000, with substantial density increases also targeted for Campsie, Canterbury, Dulwich Hill and Marrickville.
Developers are already moving. Analysis of NSW Planning data shows 6,239 apartments have been proposed in the rezoned suburbs under state-significant planning applications, the largest being a $1.8 billion redevelopment of Bankstown Central by Vicinity Centres including 2,673 apartments in residential towers above the shopping complex.
NSW Planning Minister Paul Scully said the changes would support more homes with strong connections to public transport. "Unlocking thousands of new homes along the Southwest Metro line is an example of the government matching a transport infrastructure investment with housing growth in communities young people, families and key workers want to live in," he said.
The ambition far exceeds the former Baird government's 2015 target of 36,000 dwellings along the rail line. Of the 59,500 homes now proposed, 50,500 fall within the Canterbury-Bankstown local government area, a surge that would lift the council area's dwelling stock by 37.5 per cent, from 133,317 to 183,817.
The scale of transformation is exposing familiar fault lines in Sydney's housing debate. In Campsie, the government this month approved a 33-storey tower on London Street that exceeds the suburb's rezoned height limit by 13 storeys, while a separate proposal for 346 apartments on Ninth Avenue would reach 39 floors. Colin Cosier of the Campsie Public School Parents and Citizens Association called the building "inappropriate" for the site, saying it would place excessive pressure on local infrastructure. Canterbury-Bankstown Council's co-ordinator of strategic assessments, Patrick Lebon, described a 425-unit project on Evaline Street as "unprecedented" and "inconsistent" with the council's long-term vision. Bankstown resident Suzana Zekic said residents often felt "powerless" as large developments progress through the planning system. "It feels like it's all out of our hands and that you don't have a say on what's being built in your area," she said.
Supporters point to housing options for people priced out of the inner city. Justin Simon, chair of pro-housing group Sydney YIMBY, said young people working in the CBD were being pushed further out and spending hours commuting. UNSW professor Chris Pettit of the City Futures Research Centre said concentrating housing around transport could reduce Sydney's reliance on urban sprawl. Local traders, including Punchbowl florist Dina Kheir, see the metro as a chance to recover from years of disruption. "Local shopping strips have been really struggling in the current climate but having those faster train services is really going to open the door for a lot of people to live here and shop here," she said.
Questions remain over affordability. Western Sydney University urban research professor Ehsan Noroozinejad noted mandated affordable housing contributions in rezoned areas are set at 3 to 4 per cent for up to 15 years, arguing they should rise to 10 to 15 per cent in perpetuity and warning that rezoning could push up land values, development costs and ultimately prices. Urban Taskforce chief executive Tom Forrest backed the changes but cautioned that labour shortages, financing constraints, taxes and rising construction costs remain barriers.
Bankstown State Labor MP Jihad Dib pointed to projects such as the redevelopment of Bankstown Hospital as evidence that infrastructure investment would support the growth in density. A Transport for NSW spokeswoman said the metro would initially carry about 17,000 passengers an hour in each direction during peak periods, with capacity able to expand if demand requires. A pedestrian and cycling route, the MetroWay, is also being built between Sydenham and Bankstown and is due to open in 2028.