Developer PAYCE has secured planning approval for a $136 million, 351-apartment development in Sydney’s Melrose Park, delivering a major boost to the city’s affordable rental housing supply.
The NSW Department of Planning, Housing and Infrastructure (DPHI) has granted both rezoning and development approval for the mixed-use project at the intersection of Hope Street and Hughes Avenue, making it the first development in New South Wales to achieve Concurrent Rezoning under the Housing Delivery Authority (HDA) pathway.
The development will comprise 197 affordable housing units and 154 co-living units, with the co-living component set to house more than 700 residents.
Community housing provider Evolve Housing will own all 197 affordable units, which will be funded for 25 years under the Australian government’s Housing Australia Future Fund (HAFF) scheme and leased as affordable housing to eligible tenants.
The approval comes as New South Wales works to meet its delivery targets under the National Housing Accord, with the affordable component representing a significant contribution to that goal.
PAYCE Chairman Brian Boyd said the project addresses a pressing need in one of Sydney’s fastest-growing precincts.
“This project represents a major boost for new affordable rental accommodation in an area of high demand and high amenity,” Boyd said.
“The project is situated within 100 metres of the new Parramatta Light Rail Stage 2, currently under construction, which will provide a much-needed transport link to not only the new Sydney West Metro at Sydney Olympic Park, but also connectivity to both the Sydney and Parramatta CBDs.”
The site’s location places residents within easy reach of significant infrastructure investment.
The $800 million Melrose Park Town Centre, featuring a 30,000 square metre retail shopping centre, is set to open later this year and is just 100 metres from the development.
The project is forecast to generate 216 construction jobs and 26 ongoing operational roles.
Evolve Housing Group CEO Lyall Gorman said the Melrose Park homes form part of a broader pipeline of new affordable housing the organisation is delivering nationally.
“The 197 homes to be delivered at Melrose Park are part of 1,094 new affordable homes Evolve Housing will deliver through the HAFF, helping address the growing shortage of affordable housing in well-connected locations,” Gorman said.
“These homes will provide people with greater stability and the opportunity to live close to employment, education and essential services.
“Projects like this demonstrate the importance of strong partnerships, and we are proud to work with PAYCE and Housing Australia to deliver housing that makes a lasting difference for people and communities.”
Construction is expected to be completed in late 2028.
