A $250 million mixed-use development in Kensington has reached its structural milestone, marking progress toward the completion of 142 new apartments and retail spaces along Anzac Parade.
Major Milestone for The Kensington
Construction of The Kensington, developed by TOGA, has reached its topping-out stage, signifying the completion of the building’s main structure. The project is scheduled for completion in early 2026 and will feature a mix of one-, two-, and three-bedroom apartments, along with dual-level SOHO residences that integrate workspace and home living.
The eight-storey development includes ground-floor retail and hospitality tenancies designed to activate Anzac Parade and contribute to the suburb’s growing high-density character.
Expanding Housing Options in Kensington
Kensington continues to evolve into a higher-density, transit-oriented precinct following major infrastructure and commercial upgrades along the light rail corridor. The suburb has attracted over $1 billion in public and private investment, strengthening its role in addressing Sydney’s increasing housing demand.
Under the NSW Housing Accord, Randwick Council has set a target of 4000 additional dwellings by 2029. Kensington, currently home to about 59,000 residences, contributes to this growth as new developments increase local housing availability.
Design and Amenities
The Kensington will offer a range of shared amenities including co-working spaces, social lounges, a games room, library, and a rooftop terrace with city views. Residents will also have access to landscaped communal areas designed to encourage connection and flexibility in modern urban living.
The building’s design was led by Turner Architects, with interiors by Richards Stanisich. Both firms focused on functionality, open layouts, and a seamless transition between indoor and outdoor spaces.
Market Conditions and Demand
Colliers has identified Kensington as one of Sydney’s most supply-constrained apartment markets, with vacancy rates sitting below 2 per cent. Market data varies across sources, with one report noting a 15.4 per cent decline in rents since late 2024, while another recorded a 20 per cent rise over the past year, reflecting differing market snapshots.
Despite this, interest remains high among investors, downsizers, and young professionals drawn to the suburb’s proximity to UNSW, the Randwick Health Precinct, and nearby beaches.
From Hotel Site to Residential Precinct
The site previously operated as the Addison Hotel before being repurposed as a temporary homeless shelter and later as an OzHarvest supermarket. Its redevelopment into The Kensington marks the site’s transformation into a long-term residential and commercial precinct aligned with the suburb’s broader renewal.
Next Steps
Construction is approaching completion, with apartments expected to be ready for occupancy by early 2026. Once finished, The Kensington will add to the suburb’s growing housing stock and strengthen Kensington’s position as a key growth hub within Sydney’s eastern suburbs.
Published 28-Oct-2025
