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NSW reveals multi-storey housing development plan for former WestConnex site

08 Sep, 2026
Productivity Commission report highlights urgent need for housing construction reforms


Vacant land in Sydney’s Inner West that was previously used as construction space for the WestConnex project will soon be transformed into hundreds of new residences under plans unveiled by the state government.

The proposal targets surplus state-owned land around Parramatta Road, Alt Street, and Bland Street spanning Haberfield and Ashfield.

The development forms part of the government’s AU$6.6 billion Building Homes for NSW program following a statewide land audit to identify parcels suitable for residential infill.

Under the plans, around 340 homes will be constructed across four residential buildings ranging from three to seven storeys.

In line with public housing commitments, 30 per cent of the total dwellings will be allocated to social housing.

The site sits directly opposite a major supermarket and within walking distance of local schools, retail precincts, and public transport links along Parramatta Road.

Plans for the precinct feature landscaped communal areas, residential and bicycle parking, as well as dedicated community and non-residential spaces along the Parramatta Road frontage.

Minister for Housing and Homelessness Rose Jackson stated that utilising well-connected government land is needed to address pressing affordability challenges across Sydney.

“At a time when too many people are struggling to get a roof over their heads, we need to make the most of every suitable site we have, particularly in well-connected locations,” Jackson said.

“We know there is strong demand for social housing across the Inner West, which is why we’re identifying opportunities like this through our statewide land audit.”

The project is part of the state government’s aim to deliver the largest housing and planning reform agenda in the state’s history,

Member for Summer Hill Jo Haylen welcomed the adaptive reuse of the former dive site, emphasising that the development would help diverse socio-economic groups remain in the region.

“By delivering these new homes, the NSW Minns Labor government is making sure the Inner West remains a place where people from all walks of life can afford to live, raise a family, and stay a part of the community they love,” Haylen said.

Homes NSW is currently seeking early community feedback on the master plan before lodging a State Significant Development Application with the Department of Planning, Housing and Infrastructure.

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