More than 3,300 new homes could be built across Waterloo South under new plans open for community feedback. This is the next stage of what planning documents call Australia’s largest housing rebuild project.
The plans describe Waterloo South as a busy, high-density neighborhood. It will feature a mix of housing, brand-new parks, shops, community spaces, and upgraded streets. The area will also have easy access to public transport, including the nearby Waterloo Metro station.
Public Review Begins for Waterloo South Plans
The official proposal and rezoning plans entered a public review period in May. This gave residents and community groups 28 days to look over the technical documents and send in their feedback.
The massive project is being led by Homes NSW and their development partner, Stockland. They are working alongside community housing groups Link Wentworth, City West Housing, and Birribee Housing.
The rebuild will happen in stages over several years. The current buildings across Waterloo South are set to be torn down. They will be replaced with mixed-housing blocks, meaning social, affordable, and private homes will all sit within the same neighborhood.
At least half of the planned properties will be social or affordable housing. The government states this plan will more than double the number of social and affordable homes currently on the site.
New Parks and Shops Near Waterloo Metro
The design includes two brand-new public parks. The main feature is a large two-hectare green space in the center, along with a smaller park for the community. The master plan also includes new walking paths, retail spaces, cafés, community centers, and a supermarket.
The design team is focusing heavily on open spaces, making the area easy to walk through, and connecting Waterloo to nearby suburbs like Kensington.
The project paperwork also highlights a “Designing with Country” approach. This means the layout will recognize and respect Aboriginal culture and planning principles tied to Gadigal land.
Residents Worry About Moving and Community Changes
While the plans promise upgrades, local community groups and some residents say the project brings a lot of worry about moving away and losing their current community.
Homes NSW says some residents have already moved into brand-new apartments at the Waterloo Metro Quarter and the Boronia building as part of the first stage. Officials promise that tenants who have to move in future stages will get plenty of support and lots of advance notice.
Local community group REDWatch is urging residents to look at the paperwork closely and send in their thoughts early. Because the project is so huge and the planning documents are so technical, they want locals to have their say. The group pointed out common worries with big housing upgrades, such as the stress of moving, changes to the neighborhood’s identity, and how long the rebuilding process will take.
Some neighbours are also worried about how the future building stages will impact their local friendships and social networks.
Housing Pressure Sparks Inner-City Rebuilds
This project comes at a time when Sydney is facing huge pressure over housing supply, high rental costs, and a lack of social housing close to the city center. The NSW Government has linked the Waterloo South project to its bigger state-wide housing plan, which aims to build new public and affordable homes while upgrading older properties.
Public feedback on the Waterloo South plan is open through the NSW Planning Portal until 2 June 2026.
Published 15-May-2026
