Paddington Residents Rally Against $78M Redevelopment Of Affordable Homes

Eastern suburbs residents are pushing back against a proposed $78 million redevelopment in Paddington, accusing the developer of using state housing incentives to replace genuinely affordable homes with luxury apartments.

Sydney-based developer Toohey Miller plans to demolish a three-storey block of 27 studio apartments and several townhouses on Oxford Street, replacing them with an eight-storey building of around 40 units.

Ten of these would be offered as below-market rentals for 15 years. The concept also includes ground-floor shops and a four-level basement car park for 78 vehicles.

Woollahra councillor Harriet Price argues the project exploits the Minns government’s affordable housing bonus scheme, intended to boost supply, by swapping long-term low-cost homes for high-end units.

She adds the developer is effectively “double-dipping” for five extra storeys by combining affordable housing incentives in Paddington’s heritage conservation area with mid-rise reforms.

“This proposal is replacing 27 genuinely affordable dwellings with luxury apartments and only [up to] 12 temporary ‘discounted’ dwellings,” she said.

Residents challenge Paddington redevelopment over loss of affordable homes

Residents have launched an online petition, “Stop the Paddington tower,” warning that the development threatens both the heritage of Little Paddington Village and what remains of its affordable rental stock.

 

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A letter from architect Matthew Pullinger, supporting the concept, acknowledges the “significant uplift in development capacity” and says the project requires careful design to fit well into its surroundings.

Planning documents argue Oxford Street has greater “carrying capacity” for larger buildings and claim the proposal would not cause unreasonable impacts on neighbours’ views or sunlight.

A formal development application is yet to be lodged but would be assessed as a state significant project.

Toohey Miller says the future plans will deliver one- to three-bedroom units close to transport and shops, with 15 per cent set aside as affordable housing for key workers.

Price will bring a notice of motion to Tuesday’s council meeting outlining community concerns around the loss of affordable homes, heritage impacts, overshadowing, traffic, and what she calls a weakened consultation process—which is now compressed to just 14 days for state significant projects.

Planning Minister Paul Scully has defended the government’s broader reforms, saying “cities are not museums” and Sydney must evolve to address the housing shortage.

He says the 15-year minimum for discounted rentals will create a rolling supply of affordable homes aligned with existing infrastructure.