New Housing Project in North Kensington Blocked

North Kensington may be spared from a plan to introduce a new housing project following some objections from the local community.



With an average median house price of $3.4 million, North Kensington has been a target for affordable housing initiatives. However, amidst objections from Randwick Council, the scope of the housing strategy will be limited to West Randwick instead.

The NSW Planning Department proposed reinstating North Kensington and a portion of West Randwick as affordable housing investigation areas as part of a comprehensive planning proposal. Council officers informed the councillors about the department’s consideration, recommending an amendment to the Housing Investigation Area Affordable Housing Plan to include these areas, but only if the department reinstates them. 

North Kensington Housing NSW
Photo Credit: NSW Planning Department

The decision to prevent increased affordable housing in North Kensington comes as the NSW Planning Department expressed concerns over Council’s push for developers to contribute 10 per cent toward affordable housing in local investigation areas. 

In a letter to the Council, a representative from the Planning Department stated that the viability of this increased contribution rate “has not been tested.”

The planning representative also pointed out that the Council’s feasibility analysis had shown that even lower contribution rates of 5 to 7 per cent would not be viable. 

A construction executive, George Sassine from CIMIC Group, also criticized the push, stating that it was no longer feasible to continue building houses. Mr Sassine highlighted the construction industry’s struggles with unprecedented inflation, which had led to bankruptcies. CoreLogic Australia’s construction cost index had risen by 12 per cent over the past year, with a similar increase in the previous year. 



Whilst acknowledging the need for affordable housing, Sassine expressed frustration and argued for a greater focus on overall housing construction to meet the needs of the wider community. In response, the councillors voted to reduce the contribution rate to three to five per cent in major affordable housing zones.

Published 7-June-2023

Locals Worry About ‘Overpopulation’ With Regard To Proposed Housing In Kensington North

Locals are concerned about plans for a new housing precinct in North Kensington, which will also involve some changes in terms of the zoning, height and density rules in the area.


Read: Kensington House With No Bathroom, Kitchen & Power Sells for $4.7 Million


Based on planning documents, the new housing precinct would involve transitioning down to the proposed 7 and 5 storeys in the Housing Investigation Area (HIA) to the existing three and four storey walk-up apartments setback to either side of Anzac Parade, and to the lower scale one- and two-storey villas and semi-detached dwellings in the surrounding neighbourhoods.

anzac parade
3D modelling of Kensington North HIA, 7 and 5 storey ((Photo credit: Randwick City Council)

The proposal is part of the Comprehensive Planning Proposal to amend Randwick City Council’s Local Environmental Plan (LEP).

As part of the LEP, Council is also considering rezoning 59A-71 Boronia Street and 77-103 Anzac Parade, Kensington (between Anzac Parade and Boronia Street).

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Locations of proposed housing precincts in Randwick (Photo credit: Randwick City Council)

“It is recommended that the optimum urban design outcome (building massing and height) for the Kensington North HIA, taking into consideration the existing and future surrounding built form context, is the proposed scenario with seven and five storey maximum height limits. Feasibility testing has demonstrated that this built form scenario is viable with a 5% Affordable Housing contribution,” the analysis report  reads.

Locals’ concerns

housing randwick
Housing Investigation Area (Photo credit: Randwick City Council)

Some members of the community are against these proposed changes, with some locals citing ‘overpopulation; and ‘increasing densities without the appropriate infrastructure’ as their top concerns.

According to the Randwick Council, LEPs need to be amended periodically “to ensure they meet best planning practice and are strategically aligned with community values and the directions of state plans.”

Whilst Council is vocal against overdevelopment in the area, Randwick Mayor Dylan Parker explained that the local government had to keep up with the NSW Government’s target to have as much as 4,464 new dwellings in the next 6-10 years.

“To limit the impact of these housing targets, our draft LEP proposes additional housing in areas well located to public transport, jobs and shops,” Mayor Parker said.

Meanwhile, the Council also encourages locals to have their say on the project, on the public exhibition which will be held at the Kensington Park Community Centre from 31 May to 12 July 2022.

The new housing proposed for Kensington North will be one of the new precincts proposed by the Randwick Council, along with those proposed for West Randwick, Arthur Street, Magill Street, and Kingsford South.

For more information about Council’s Kensington North HIA, visit randwick.nsw.gov.au