Up to 3,000 new homes on the doorstep of the Sydney CBD have moved closer to reality as after the NSW Government announced that a proposal to develop the homes has progressed.

The NSW Government has announced that an unsolicited proposal from Lendlease to redevelop part of the Rozelle Bay approximately 2km west of the Sydney CBD has moved to the second stage of its unsolicited proposals process.

Lendlease will now work with the NSW Government to develop and assess a more detailed proposal.

This will include exploring issues such as value for money, strategic alignment, risk, planning pathways and how the proposal could integrate with the precinct-wide master planning process.

The next stage will also define further planning processes that will include opportunities for community engagement and feedback.

Promoted by the developer as a generational opportunity to create a vibrant Sydney harbourside precinct, the unsolicited proposal will deliver up to 3,000 new homes on the edge of Sydney’s CBD.

Of these, the proposal aims to complete 1,000 of the homes by 2032,

A new pedestrian underpass will connect the development will connect Rozelle Bay to the new Bays Metro Station and broader Bays West precinct.

Beyond housing, the proposal will deliver a publicly accessible foreshore that enables a continuous harbour loop and strengthen connections to surrounding neighbourhoods.

The proposal is part of the New South Wales Government’s vision of a broader transformation of the Bays West Precinct that was announced last month.

That vision will deliver up to 8,500 well-located homes above the Bays West Metro station which is currently under construction.

Of these, a minimum of 10 percent will be affordable and essential worker homes.

According to the Government, the precinct will combine new housing with a lively creative industries and night time entertainment precinct anchored by White Bay Power Station and public open space.

It will open public access to the waterfront for the first time in more than 100 years, while maintaining working harbour operations in White Bay.

NSW Minister for Land and Property Steve Kampur welcomed the latest progress.

“Bays West is one of the most important urban renewal opportunities in our city, and our focus is firmly on delivering more homes close to transport, jobs and the harbour,” Kampur said.

“Our starting point is clear: we want more well‑located homes near the CBD, strong public transport connections through the new Bays Metro Station, and better access to Sydney Harbour for the community.

“Importantly, Bays West will continue to support the working harbour, major events and maritime industries that are critical to Sydney and the State.

“We are determined to ensure this transformation delivers real benefits for working people, including affordable housing and high‑quality public spaces.

“Any proposal that progresses will need to clearly demonstrate it delivers the Bays West vision and serves the public interest.”

Lendlease Group CEO Tony Lombardo welcomed the progress.

“The progression of the Rozelle Bay proposal marks an important milestone and reflects the shared focus of government and industry on increasing the supply of well‑located homes,” Lombardo said.

 

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