The Pulse | 12 December 2025

High-Rise and Shine: Sydney Wakes Up to Plans for a New Skyline   

The government's involvement in inner Sydney, particularly the Wentworth Park and Blackwattle Bay redevelopment, is set to unlock a pipeline of over 7,300 new homes, bolstering future supply in the inner west [11, 12]. 

Government involvement continues to be complemented by strong private sector activity in key hubs like Chatswood, where developers are leveraging planning incentives and the growing build-to-rent model to fuel a high-density boom [3, 9, 5]. 

Beyond residential, the market is diversifying. Billions are being channelled into the development of data centres in Western Sydney, a sector driven by the AI revolution though constrained by critical infrastructure needs like power and water [2]. 

Concurrently, strong demand in premium regional and lifestyle markets, from Byron Bay to Newcastle, highlights opportunities outside the metropolitan core, though these projects often involve their own unique regulatory and delivery challenges [8, 10].

State-Led Urban Renewal Drives Inner-Sydney Housing Pipeline  

The NSW government is spearheading a transformative urban renewal agenda in inner Sydney, centred on the redevelopment of Wentworth Park and the broader Blackwattle Bay precinct [1, 11]. This initiative is poised to deliver a total of 7,300 new homes to the area, combining 2,500 dwellings from new rezoning with 4,800 already planned nearby [11, 12]. 

A cornerstone of the plan is the cessation of greyhound racing at Wentworth Park by 2027, which will free up the 14-hectare site for public green space and facilitate high-density residential development in the surrounding area [1, 11]. The government has signalled its intent to fast-track this process, with the Planning Minister indicating a readiness to implement a "State-led rezoning" if necessary to meet housing objectives [11, 12]. 

This project is a key component of NSW's commitment under the National Housing Accord to build 377,000 new homes by 2029 [1]. Major industry players are already involved, with Mirvac named as the preferred developer for the 2,000-unit former Sydney Fish Market site, a project that includes 1,400 apartments and extensive public amenities [11, 12]. Construction on the old fish market site is slated to begin in early 2027, with the entire precinct redevelopment expected to be completed by 2033 [12].

Chatswood Emerges as High-Density Development Hotspot  

Chatswood is solidifying its position as a major hub for high-density development, with a pipeline of projects driven by favourable planning regulations and strong market demand [3, 9]. Recent approvals highlight a trend of developers successfully leveraging state-level planning instruments to achieve scale. 

For instance, Bridgestone Projects secured approval for a $600 million, 33-storey tower with 123 apartments after initially being refused by a local panel, successfully utilising the State Significant Development (SSD) pathway [9]. Similarly, Loftex gained approval for a $102-million, 35-storey tower with 160 apartments by incorporating a 14% affordable housing component, leveraging incentives under the NSW Housing SEPP [3]. These approvals are enabled by a 2022 LEP amendment that lifted the area's height cap from 25m to 90m [3]. 

Beyond build-to-sell, the build-to-rent (BTR) sector is also making a substantial mark. Novus is developing a $290 million, 198-unit BTR complex on the Pacific Highway, adding to its growing portfolio in the area [5, 6]. This wave of investment, which includes multiple other towers valued at over $100 million each, demonstrates sustained developer confidence in Sydney's Lower North Shore [3].

Outside of Sydney, regional and lifestyle-focused markets are demonstrating robust health. In Jamberoo, a 50-lot subdivision is proceeding after years of delay caused by protracted coordination with Sydney Water over sewer capacity, highlighting the important role of utility approvals in regional development [4]. At the premium end of the market, demand remains strong, evidenced by the launch of Byron Bay's first new apartment complex in a decade, with prices starting from $4.75 million [8] and the commencement of a luxury over-55s community in Newcastle that has already secured over $100 million in sales [10].

Infrastructure and Niche Sectors Signal Market Diversification 

While housing continues to dominate headlines, investment is flowing into specialised sectors, revealing a diversification of the NSW construction market. The AI revolution is driving a data centre boom, with Goodman Group planning a $15 billion empire in Sydney by converting industrial sites into high-value AI infrastructure [2]. 

A $5 billion project at Eastern Creek exemplifies this trend, but the sector faces  constraints, particularly in securing high-capacity power and water connections, a hurdle that has reportedly challenged competitors [2]. This high-tech development is supported by ongoing essential infrastructure work, such as Robson Civil Projects' upgrades to Mamre Road, which are crucial for unlocking industrial potential in the Western Sydney Aerotropolis [7]. 

Final Thoughts

The state's direct intervention to unlock housing supply in inner Sydney continues to create a long-term pipeline but also consolidates planning power, requiring industry to align closely with state priorities [1, 11]. Simultaneously, the growth in specialised sectors like data centres and premium lifestyle developments highlights the need for technical expertise and agility [2, 8, 10].

1. by Alexandra Smith, Megan Gorrey 9 December 2025, 5:00am AEDT. (9 December 2025). ‘Cities change’: The plan for thousands of new homes in inner Sydney revealed. https://www.theage.com.au/politics/nsw/cities-change-the-plan-for-thousands-of-new-homes-in-inner-sydney-revealed-20251208-p5nlr6.html
2. NT News | by Ben Wilmot 8 December 2025, 6:58pm AEDT. (8 December 2025). Goodman Group poised to pour billions into Sydney data centres. https://www.ntnews.com.au/business/goodman-group-poised-to-pour-billions-into-sydney-data-centres/news-story/06e795b4d546a4ee9c36dd3ef51e3223?btr=34cd65338589379f1201a8e8925c6526
3. The Urban Developer | by Vanessa Croll 8 December 2025, 1:00am AEDT. (8 December 2025). Approval Adds Loftex $102m Tower to Chatswood Pipeline. https://www.theurbandeveloper.com/articles/chatswood-residential-development-sepp-approval-loftex-embece-help-street
4. Kiama Bugle | 5 December 2025, 5:00pm AEDT. (5 December 2025). Golden Valley development on the horizon after sewer saga ends. https://thebuglenews.com.au/NewsStory/golden-valley-development-on-the-horizon-after-sewer-saga-ends/69324563607648002d460002
5. Commercial Real Estate | by Carolyn Cummins 5 December 2025, 1:29pm AEDT. (5 December 2025). Chatswood to house $290m 198-unit built-to-rent complex. https://www.commercialrealestate.com.au/news/chatswood-to-house-290m-198-unit-built-to-rent-complex-1466052/
6. WA Today | by Carolyn Cummins 5 December 2025, 10:11am AEDT. (5 December 2025). Chatswood to house $290m 198-unit built-to-rent complex. https://www.watoday.com.au/business/small-business/chatswood-to-house-290m-198-unit-built-to-rent-complex-20251205-p5nl3j.html
7. Property Council of Australia | by Sponsored. (None). Robson Powers Ahead with Third Mamre Road Intersection Upgrade. https://www.propertycouncil.com.au/property-australia/robson-powers-ahead-with-third-mamre-road-intersection-upgrade
8. The Australian | by Lisa Allen. (None). Developer EADE launches exclusive Byron Bay apartment complex. https://www.theaustralian.com.au/business/property/developer-eade-launches-exclusive-byron-bay-apartment-complex/news-story/4350b7956479d48692ffa2ac90cdab37?btr=e09f47ee9c2e212fafa90296496b62b7
9. The Urban Developer | by Clare Burnett 5 December 2025, 1:00am AEDT. (5 December 2025). Bridgestone 33-Storey Tower at Chatswood Approved. https://www.theurbandeveloper.com/articles/bridgestone-chatswood-sydney-north-shore-maison-le-ciel-approved
10. The Daily Advertiser | by Rosie Ryan 4 December 2025, 9:23am AEDT. (4 December 2025). Construction tees off on one of Newcastle's most exciting over-55s developments. https://www.dailyadvertiser.com.au/story/9116914/construction-tees-off-on-one-of-newcastles-most-exciting-over-55s-developments/
11. by Vivien Topalovic 9 December 2025, 2:23pm AEDT. (9 December 2025). Wentworth Park overhaul to help deliver 7300 homes in Sydney’s inner west. https://www.realestate.com.au/news/wentworth-park-overhaul-to-help-deliver-7300-homes-in-sydneys-inner-west/?cspt=1765319603|c58594b7768ecde3ce718fd4e0bdb1b2
12. 9 December 2025, 1:22pm AEDT. (9 December 2025). Plans expanded for Sydney’s Blackwattle Bay. https://architectureau.com/articles/plans-expanded-for-sydneys-blackwattle-bay/