NSW announces new home boost for Sydney’s inner city

Over 500 new homes are set to transform the former WestConnex dive site in Camperdown, providing an influx of rentals to the Inner West housing market.

The NSW government has unveiled the first plans for new housing to come out of a massive land audit the state conducted last year.

The 500-dwelling project will feature at least 200 build-to-rent units available at discounted rates for essential workers. The remaining 300 units will be a mix of private and affordable rental options to support the area’s tight rental market.

Build-to-rent projects are residential developments, typically featuring high-rise apartments, that are entirely owned and managed by a single entity. These units are then rented out for extended terms.

This is a rare instance where the state government intends to construct and own the build-to-rent facility.

Government developer Landcom, which was tasked with this development, has chosen the site from the government’s land audit initiative – a staple of Premier Chris Minns’ housing priorities when he took office in 2023. The initiative aims to unlock unused government land for new home developments, ensuring efficient use of available space.

At least 200 build-to-rent units will be available for essential workers. Picture: Getty

Located in the popular and densely populated suburb of Camperdown, the site is close to transport, public spaces, amenities, education centres, as well as the Royal Prince Alfred Hospital.

With the intention of devoting a substantial proportion of the new homes to essential workers, it’s hoped many of those spaces will be taken up by hospital staff employed at the nearby health facilities.

Currently, the development is slated to feature ground-floor retail or commercial spaces, as well as landscaped outdoor areas and pedestrian links to enhance accessibility and community amenities.

NSW minister for planning and public spaces Paul Scully said the Camperdown site was secured by Landcom as part of the government’s $450 million investment to deliver more housing for essential workers – first announced in June 2024.

“The new rental homes in Sydney’s Inner West will ease the pressure on essential workers employed nearby, providing greater housing choice, security and affordability, improving quality of life,” Mr Scully said.

“The development will transform unused Government-owned land with new homes for renters and buyers, while rejuvenating a key part of the Parramatta Road corridor.”

It’s hoped many of the spaces will accommodate essential staff from nearby facilities. Picture: Getty

Landcom and Homes NSW were given first pick of land audit sites, making this the first development site for Landcom.

NSW minister for housing Rose Jackson sees the announcement as “much needed” for those workers being priced out of communities.

“Key workers are being priced out of their own communities, making it harder to build a future where they live and work,” she said.

“This investment is about backing them in—giving nurses, teachers and first responders more affordable rental options close to their jobs so they can keep doing the work that keeps our city running.”

Construction is expected to begin in 2026, with the first essential workers moving in around 2028.

NSW’s future of housing

The announcement comes amid several housing initiatives in NSW, including a review of laws for off-the-plan contracts and the federal government’s latest Housing Support Program funding.

Build-to-rent continues to see traction across Australia, with public and private developers all adding projects to the sector.

Under these plans, ownership of the build-to-rent units will remain under the government, with eligibility criteria, how to apply and rental subsidy details to be released closer to the project’s completion.

The Property Council of Australia welcomed the announcement, with property council NSW executive director Katie Stevenson noting the use of the build-to-rent model as a secure approach.

“BTR is a proven model overseas and is gaining traction in Australia as a way to create well-designed, well-located rental options for residents,” she said.

She also suggested the model provides an opportunity to deliver more rental homes at scale and encouraged the government to continue exploring ways to support its expansion.

In addition to this project, Landcom is expected to commence construction on 110 build-to-rent units in NSW’s Northern Rivers and South Coast later this year.