Land Court Approved Luxury Redevelopment Prior To Historic Home Collapse

A luxury housing project that recently caused the partial collapse of a historic Rose Bay villa was permitted by the Land and Environment Court, despite neighbours’ concerns.

Hillcrest, located at 780-786 New South Head Road, was constructed circa 1890 as a pair of semi-detached houses, later converted to contain six units.

A $9.9 million project sought to redevelop it once more into five high-end dwellings. Then, on 12 February, part of the two upper levels and the roof collapsed, in an incident attributed by the builder to “flawed” geotechnical advice.

But if Woollahra Council had its way, the development would not have taken place. The municipality litigated in 2021 that it threatened to damage the property’s heritage value internally and externally, and that the “inadequate” side and rear setbacks proposed would cause an unacceptable acoustic impact.

Commissioner Joanne Grey determined that “the proposed development has an acceptable impact on the heritage significance of the building. Further, I consider that the setbacks are acceptable in the context.”

Hillcrest was subsequently heritage listed, as the council had sought prior to the development application. In her judgement, Grey viewed its imminent listing as a certainty.

Neighbours were concerned about property impacts

The council’s objections did not include geotechnical concerns that the development could destabilise Hillcrest or other properties. However, neighbours at 788 New South Head Road did hold such fears, and sought to convince the court to consider them anyway.

They commissioned an independent report from geotechnical engineer Warwick Davies of engineering firm EI Australia. Davies gave evidence to the court that there was insufficient information to guide the planned excavation, which in his view posed a risk to the neighbouring property. The residents were represented by solicitor Stephanie Vatala.

The judgement was not in their favour. “It is clear that structural stability will be maintained, subject to the final design details being responsive to further investigation of the site conditions as the work commences.”

“The conditions of consent are adequate to ensure that the final engineering design will be adequately informed by the site conditions and that adequate monitoring will be in place to ensure structural stability will be maintained.”

Councillor calls for “complete” geotechnical reports from developers

Merrill Witt is a Residents First Woollahra councillor for the Vaucluse ward, within which the development is located. “I think the devastating damages to Hillcrest are an example of why complete hydrogeological and geotechnical reports should be required before DAs are approved by the planning authority.”

“At its ordinary meeting on 23 March 2026, Council resolved to request that staff investigate the feasibility of commissioning independent geotechnical reviews for complex DAs requiring basement excavation,” Witt said.

Rose Bay and Double Bay have been beset by concerns over new developments, which have in recent years caused structural damage to existing properties. A flurry of projects has been spurred by the Minns Government’s planning reforms.

In March, Witt’s ward colleague Julian Parmegiani, a Liberal, slammed “fantasy” geotechnical reports submitted by applicants.

Positive Investment Enterprise, the Hillcrest developer, stated that it is “committed to ensuring that upcoming repairs, with appropriate approvals, will restore the façade to its former glory.”