The Pulse | 17 September 2025

Boring Betty & Ruby’s Big Dig: Progress, Politics and a hole lot of Dirt

This edition of The Pulse examines a NSW construction landscape governed by state-led interventions to address housing supply and accelerate the energy transition. 

The government continues to deploy rezoning initiatives, such as those along the Parramatta Road corridor and utilising streamlined planning pathways to fast-track major developments [8, 12, 14]. 

This top-down approach is mirrored in the renewable energy sector, where new authorities and substantial investment schemes aim to unlock billions in private capital for infrastructure [5, 21]. 

In the heavy infrastructure space, significant progress has been made on the Sydney Metro West project, with tunnelling for the 24-kilometre line now 90% complete. This milestone reflects both the technical complexity and the scale of investment required to deliver mega-projects, while signalling that the government’s commitment to completing the current pipeline before launching new large-scale metro lines [18, 20].

However, this rapid, policy-driven development environment is creating tension. On the ground, projects face strong community opposition over scale and amenity, while the rollout of Renewable Energy Zones is generating social and mental health challenges in regional communities [11, 19]. 

New construction methods like flat-pack housing and 3D printing, alongside adaptive reuse and co-living models, are gaining commercial traction as viable solutions to improve efficiency, mitigate risk and meet diverse housing needs [1, 2, 13, 17].

Sydney Metro West Tunnelling Nears Completion

Significant progress has been made on the Sydney Metro West project, with tunnelling for the 24-kilometre line now 90% complete [18]. 

Tunnel boring machine (TBM) Ruby has commenced the final 1.1-kilometre leg of its journey from Pyrmont to the future Hunter Street Station, navigating a path 37 metres below ground [18]. 

This section includes a technical 250-metre dig beneath Darling Harbour, where the tunnels will pass just five metres below the harbour floor and in close proximity to infrastructure like the Australian Maritime Museum and the City East electricity cable tunnel [18]. 

Another TBM, Betty, recently completed its two-year journey, arriving at Westmead station [20]. The final TBMs are expected to complete their sections between The Bays and Hunter Street by the end of 2025, marking a major milestone for the project, which began tunnelling in early 2023 [18]. 

While this progress reflects  the state's commitment to the delivery  of mega-projects,  industry observers note that the government's focus remains on completing the current pipeline, suggesting new large-scale metro lines are not on the immediate horizon [18, 20].

Government Drives Housing Density Amidst Local Resistance 

The NSW government is continuing its efforts to boost housing supply through further intervention in planning controls, particularly along major transport corridors. 

A significant rezoning deal with Inner West Council for the Parramatta Road corridor aims to facilitate 8,000 new homes, part of a wider pipeline of over 40,000 homes for the area [8, 12]. 

This state-led approach is further enabled by the State Significant Development (SSD) pathway, which is being used to approve a 20-storey, 142-unit tower in Lane Cove North, superseding local planning controls that limit height to 12 metres [14]. 

Similar government-backed initiatives are fast-tracking regional projects, such as the 330-home Redleaf development in Orange, the first to complete the rezoning process under the Social and Affordable Housing Rezoning Pathway [22].

While these top-down strategies speed up approvals, they are generating local opposition. 

A proposed $78.7 million, nine-storey development in Lindfield, which leverages affordable housing bonuses for a 30% density uplift, has been met with widespread community objection, with residents citing concerns over scale, construction disruption and inadequate infrastructure [19]. 

This tension between state housing targets and local character is a recurring theme, with industry bodies noting that past strategies have lacked coordination between state and local governments [8]. 

While some local councils are proactively amending their own planning instruments, such as Coffs Harbour’s proposal to relax dual occupancy rules to unlock supply, the broader trend points towards increasing reliance on state-level powers to achieve housing targets [6].

Renewable Energy Rollout Creates Commercial Opportunities and Social Friction

NSW is experiencing a boom in renewable energy investment, creating a substantial pipeline of work for the construction sector. 

The government has approved transmission upgrades for the Hunter-Central Coast Renewable Energy Zone (REZ), set to add 1 GW of capacity by 2028 [4]. 

This is supported by federal initiatives like the Capacity Investment Scheme (CIS), which recently awarded contracts for 16 new battery projects, including five in NSW, creating an estimated 1,900 construction jobs and injecting $3.8 billion in local content  [5]. 

To further this transition, the NSW Government has launched the Investment Delivery Authority (IDA), a "single front door" designed to streamline approvals for high-value projects and unlock up to $50 billion in annual private investment, with an initial focus on renewables [21]. The commercial case is compelling, with large-scale batteries now seen as a faster and cheaper alternative to building expensive new transmission lines [16].

However, this rapid rollout is not without challenges for some renewable energy projects. Environmental impacts remain front of mind as highlighted by the Independent Planning Commission's rejection of the Redbank biomass power plan, citing an inadequately assessed fuel sourcing strategy that would incentivise land clearing [10]. 

Furthermore, the social cost of large-scale projects is becoming an important issue. In the Central-West Orana REZ, the rollout is reportedly causing widespread stress and community division over land acquisition and inequitable outcomes, straining local services before major construction has even begun [11]. 

Even approved projects face local disputes, with Dubbo Regional Council assessing a planning agreement for a $185 million solar farm that provides only 0.5% of the project's value in community contributions [3].

Innovation in Construction Methods Gains Commercial Traction

In response to persistent housing shortages, rising costs and labour constraints, innovative construction methods are moving from the periphery to the mainstream. Off-site manufacturing, particularly "kit of parts" or flat-pack systems, is being championed as a solution to industry inefficiency [1, 9]. 

A regional NSW company, Green Timber Technology, is demonstrating the model's viability, using factory automation to produce panels that can be assembled on-site in a matter of days, potentially halving project timelines and reducing reliance on skilled labour [1, 9]. 

This approach is being developed for the NSW government's accelerated Pattern Book homes program, signalling strong regulatory support [1, 9]. Similarly, 3D concrete printing is proving its commercial potential on a Sydney duplex project, where it helped reduce build time by 40-50% compared to traditional masonry [13].

Beyond new technologies, alternative development models are also gaining momentum. Adaptive reuse is being positioned as a design imperative, with high office vacancy rates making older commercial buildings prime candidates for conversion [2]. 

Case studies in Sydney show how conversions to co-living or educational facilities can bypass some stringent residential planning controls under the Housing SEPP, de-risk projects by avoiding costly excavation and achieve faster approvals [2]. 
The co-living sector itself is expanding rapidly, with Sydney accounting for 70% of the 1,800 delivered units in Australia and a future pipeline of nearly 5,000 units nationally, indicating growing investor confidence in this alternative housing model [17].

Takeaways

Navigating State-Led Planning Overrides and Affordable Housing Bonuses

Developers and contractors must be adept at navigating the increasing use of state-level planning instruments that supersede local controls. 

The declaration of a Lane Cove North project as a State Significant Development (SSD) under the Environmental Planning and Assessment Act 1979 demonstrates the government's willingness to bypass council LEPs to fast-track housing [14]. 

Similarly, the use of State Environmental Planning Policies (SEPPs) to grant density bonuses in exchange for affordable housing, as seen in the Lindfield proposal, presents a significant commercial opportunity [19]. 

However, relying on these mechanisms carries risks. As evidenced by strong community opposition in Lindfield, projects that are perceived to be out of character with the local area can face prolonged delays, reputational damage and potential legal challenges, even if they comply with state policy. 

Professionals should conduct thorough due diligence on the social and political landscape of a project location. While leveraging state-led pathways, it is key to develop a robust community engagement strategy that goes beyond statutory minimums to mitigate the commercial risks associated with local opposition.

The Critical Importance of Social Licence and Environmental Due Diligence

The rejection of the Redbank biomass project and the community backlash against REZs highlight that regulatory compliance alone is insufficient for project success [10, 11]. 

The Independent Planning Commission (IPC) rejected the Redbank proposal because the environmental impacts of its fuel sourcing strategy were "undefined" and could not be adequately managed through conditions of consent [10]. 

This sets a precedent: proponents must demonstrate a comprehensive understanding of their project's entire supply chain and its environmental consequences. 

Similarly, the community impacts in the Central-West Orana REZ highlight the growing importance of a project's "social licence to operate" [11]. Environmental Impact Statements must be thorough, particularly concerning indirect impacts like resource sourcing. 

For all large-scale projects, especially in regional areas, proponents must integrate comprehensive Social Impact Assessments into their planning. Failure to genuinely address community concerns regarding environmental impact, land use and local benefit sharing can lead to project rejection, lengthy delays and long-term operational challenges.

Ensuring Regulatory Compliance for Innovative Construction Technologies

The adoption of new construction methods like 3D printing and panelised systems requires adherence to existing legal and regulatory frameworks. 

The "Genesis" duplex project in Sydney successfully integrated 3D printed concrete by ensuring associated components, such as the structural battens, were compliant with the drainage requirements of the National Construction Code 2022 (NCC) [13]. 

Any such project in NSW would also fall under the purview of the Design and Building Practitioners Act 2020, requiring registered practitioners and declared designs. 

Likewise, the viability of adaptive reuse projects often pivots on specific legislative pathways, such as the Co-Living provisions in the Housing SEPP, which offer concessions on requirements like solar access that apply to traditional residential developments [2]. 

When adopting innovative building technologies or models, project teams must proactively engage with the NCC and relevant NSW legislation from the earliest design stages. It is crucial to document compliance pathways clearly and ensure all designs are declared by registered practitioners to avoid regulatory hurdles and potential liability down the line.

Final Thoughts 

The NSW construction sector is caught between the government's top-down policy directives and the complex realities of on-the-ground implementation. 

While state-led rezonings and streamlined approvals for housing and renewable energy projects create a significant pipeline of work, they also increase commercial risks associated with community opposition and social impact. 

The industry's future success will depend not only on its ability to deliver these projects but also on its capacity to innovate and adapt. 

The growing adoption of off-site manufacturing, 3D printing and adaptive reuse models demonstrates a clear path forward. These methods offer the potential to enhance productivity and address affordability challenges, but their success hinges on careful integration with existing legal and quality assurance frameworks to ensure sustainable, long-term growth.

1. View. (14 September 2025). Could flat-pack housing be a game changer for Australia's housing crisis?. https://view.com.au/news/could-flat-pack-housing-be-a-game-changer-for-australia-s-housing-crisis/
2. [2]. Architecture and Design. (14 September 2025). Why adaptive reuse is the future of architecture As Australia’s cities grapple with housing shortages, net-zero targets and shifting urban dynamics, adaptive reuse is no longer just an alternative — it’s a design imperative.. https://www.architectureanddesign.com.au/editorial/opinion/why-adaptive-reuse-is-the-future-of-architecture
3. Central Western Daily. (13 September 2025). Region to receive slither of $185m solar farm investment, is it enough?. https://www.centralwesterndaily.com.au/story/9064802/forest-glen-solar-farm-a-boost-for-dubbos-social-housing/
4. PV Magazine. (12 September 2025). NSW gives go ahead for Hunter REZ transmission project. https://www.pv-magazine-australia.com/2025/09/12/nsw-gives-go-ahead-for-hunter-rez-transmission-project/
5. Ministers for Climate Change, Energy, the Environment and Water. (16 September 2025). Jobs, skills and community boost in latest renewables capacity surge. https://minister.dcceew.gov.au/bowen/media-releases/jobs-skills-and-community-boost-latest-renewables-capacity-surge
6. Inside Local Government. Coffs looks to relax dual occupancy rules. https://insidelocalgovernment.com.au/coffs-looks-to-relax-dual-occupancy-rules/
7. By Joel Ehsman. The most important issues Illawarra businesses are facing, according to industry experts. https://www.southcoastregister.com.au/story/9063228/insights-from-illawarras-major-industry-showcase-event/
8. The Urban Developer. (16 September 2025). Parramatta Road Rezoning Opens Way for 8000 Homes. https://www.theurbandeveloper.com/articles/nsw-minns-inner-west-rezone-sydney-parramatta-road-housing-delivery
9. The Nightly. (16 September 2025). Could flat-pack housing be a game changer for Australia's housing crisis?. https://thenightly.com.au/lifestyle/property/could-flat-pack-housing-be-a-game-changer-for-australias-housing-crisis-c-20033450
10. 981 2NM. Redbank Biomass Power Plan Rejected by Independent Planning Commission - 2NM. https://www.2nm.com.au/local-news/redbank-biomass-power-plan-rejected-by-independent-planning-commission/
11. by Brendan Gullifer. (None). Renewable energy zones: NSW government’s rollout is heating up mental health issues in country communities. https://www.dailytelegraph.com.au/newslocal/dubbo/renewable-energy-zones-nsw-governments-rollout-is-heating-up-mental-health-issues-in-country-communities/news-story/62658d3799a3856ae6030d9b36a5284e?btr=932e4a427da4d90e59420c26821a5c32
12. TimeOut Sydney. (16 September 2025). Sydney's Parramatta Road corridor is officially getting 8,000 new homes. https://www.timeout.com/sydney/news/sydneys-parramatta-road-corridor-is-officially-getting-8-000-new-homes-091625
13. Architecture and Design. (16 September 2025). Revolutionising traditional construction with 3D printing to meet affordable housing challenge. https://www.architectureanddesign.com.au/editorial/product-news/revolutionising-traditional-construction-with-3d-printing-to-meet-affordable-housing-challenge
14. In The Cove. (16 September 2025). Developers Eyeing Royal Pacific Hotel Lane Cove North for 20-Storey Redevelopment. https://inthecove.com.au/2025/09/16/developers-eyeing-royal-pacific-hotel-lane-cove-north-for-20-storey-redevelopment/
15. The Weekly Source. (15 September 2025). Uniting gets go-ahead for 152-unit Shellharbour development. https://www.theweeklysource.com.au/topic-developments/uniting-gets-go-ahead-for-152-unit-shellharbour-development
16. Sustainability Matters | 15 September 2025, 5:04pm AEST. (15 September 2025). Large-scale battery boom points to a cheaper power alternative. https://www.sustainabilitymatters.net.au/content/energy/article/large-scale-battery-boom-points-to-a-cheaper-power-alternative-1381371022
17. BTR News Australia. (17 September 2025). Co-living accelerates with strong pipeline across Australia. https://www.btrnews.au/co-living-accelerates-with-strong-pipeline-across-australia/
18. Rail Express. (15 September 2025). Sydney Metro West tunnel boring machine enters final stretch. https://www.railexpress.com.au/sydney-metro-west-tunnel-boring-machine-enters-final-stretch/
19. Daily Telegraph - North Shore Times. (15 September 2025). Middle Harbour Rd, Lindfield: Residents object to $78m, nine-storey apartment plans. https://www.dailytelegraph.com.au/newslocal/north-shore/middle-harbour-rd-lindfield-residents-object-to-78m-ninestorey-apartment-plans/news-story/3b74e7ffae5a0e11818dc79c92074cc8?btr=bfc192b46f3ac53573e1bf2cf7aa21ec
20.  Brisbane Times. (15 September 2025). Tunnelling on Metro West nears completion – but don’t expect new lines any time soon. https://www.brisbanetimes.com.au/national/nsw/tunnelling-on-metro-west-nears-completion-but-don-t-expect-new-lines-any-time-soon-20250915-p5mv0x.html
21. Property Council of Australia. (15 September 2025). Investment Delivery Authority Boost for Hunter and Central Coast. https://www.propertycouncil.com.au/media-releases/investment-delivery-authority-boost-for-hunter-and-central-coast
22. Architecture AU. (15 September 2025). Designs released for proposed 300-home housing hub in regional NSW city. https://architectureau.com/articles/Designs-released-for-proposed-300-home-housing-hub-in-regional-NSW-city/
23. The Daily Mail. (15 September 2025). NZ offers blueprint for home-building productivity fix. https://www.dailymail.co.uk/wires/aap/article-15097971/NZ-offers-blueprint-home-building-productivity-fix.html