‘Do more’: Clover points finger at state-owned land for housing fix

The City of Sydney has identified more than 30 state-owned sites, including prime harbourfront hotels, that could be transformed into thousands of new homes, as Lord Mayor Clover Moore calls on the NSW government to “do more” to solve the state’s housing crisis.

In a bold intervention, the council is pushing for planning rules to be relaxed at Darling Harbour to allow the redevelopment of the Novotel and Ibis hotel sites into high-density apartments.

The move shifts pressure directly onto the Minns government, by challenging it to unlock its own land for housing rather than simply mandating targets for local councils.

The council has identified 32 state-owned sites that could deliver approximately 14,300 new homes. Among the most ambitious proposals is the rezoning of harbourfront land currently owned by Placemaking NSW and leased to the Accor-operated hotels, which the council believes could accommodate 1000 apartments if towers were permitted on the sites.

The push comes as NSW councils face mounting pressure to meet aggressive housing targets or risk losing their planning powers.

With the NSW government signalling it may step in to rezone land where supply lags, Moore argued that government-controlled sites offered a faster way to boost density near existing transport, jobs, and infrastructure without pushing more development to Sydney’s urban fringe.

“Some of these areas have been earmarked for housing for years, yet remain vacant,” Moore said, pointing to long-dormant sites around Redfern and North Eveleigh.

Beyond the harbour, the council has flagged land around Macdonaldtown station as an opportunity for up to 2500 homes. While the precinct is dominated by ageing rail sheds, the council argues that relocating transport operations could create housing on the doorstep of the CBD.

Smaller sites have also been identified, including the Alexandria Erskineville Bowling Club, and multiple social housing properties which the council believes could be “renewed” to deliver a net increase in social and affordable housing without displacing existing tenants.

The council’s plan is underpinned by worsening affordability, with Sydney dwelling prices rising about 29 per cent since 2020 and a median-income household facing a 16.7-year wait to save a deposit.

At the same time, housing supply has slowed due to rising construction costs, labour shortages and tighter financing conditions.

The NSW government urged caution, with a spokesman noting several sites, particularly Macdonaldtown, were critical to transport operations.

“We support using surplus government land for housing where appropriate, but we also need to ensure essential infrastructure is maintained,” he said.

The City of Sydney has been tasked with delivering 18,900 homes by 2029, the highest target of any NSW council.

Moore said solving the crisis would require co-operation across governments.

“While we acknowledge the NSW government’s efforts to date, we believe it can do more,” she said.

In addition to state-owned land, the council identified other underused sites that could support more housing, including sites on Parramatta Road near the University of Sydney, the former Australia Post facility on Cleveland Street, and the Supa Centre at Moore Park.

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