It was one of city’s first master-planned suburbs. Now it’s in line for an 11-storey tower

Battlelines are being drawn in the north shore suburb of Castlecrag after a Sydney developer lodged state significant plans to build an 11-storey housing tower on the site of the suburb’s main shopping centre, sparking outrage from residents and drawing condemnation from a state Liberal MP.

The Castlecrag Progress Association is leading the charge against a $250 million proposal to turn the Quadrangle Shopping Centre into 150 units, marking the latest flashpoint over the NSW government’s drive to boost the supply of more housing in suburban Sydney.

In the past fortnight, members of the Castlecrag Progress Association have begun mobilising against the development, convening a public meeting where an action plan was formulated to fight the project.

The resident-led action group has sent more 850 letters to every household in the suburb to alert them to the prospect of an 11-storey tower looming over the local landscape.

Progress Association secretary Tim Donahoo said many residents have been left “stunned” after discovering the proposed development was classified as a “state significant” project by the Housing Delivery Authority, which aims to accelerate the delivery of housing.

The redevelopment of the shopping centre would dwarf any other building located in Castlecrag, which is known as one of Sydney’s first master-planned suburbs. It was designed in the 1920s by renowned architect Walter Burley Griffin, also known for creating the masterplan for the nation’s capital, Canberra.

Donahoo said the plans had caused considerable consternation among residents.

“The plans were lodged without any knowledge of anybody in the local area [and] it’s been a grave shock,” he said.

“We’re not opposed to housing but 11 storeys with 150 residences is unacceptable for this area. We’d be happy to have a four- or five-storey development, but 11 storeys is completely over the top.

“It’s out of proportion with Castlecrag, and we’re concerned it will be pushed through for approval with very little consideration of the community’s views.”

The development plans come after previous owners were last year granted approval by the Sydney North Planning Panel to turn the shopping centre into a five-storey-high development – a project supported by Willoughby Council as well as the Castlecrag Progress Association.

But five months after those plans were approved, the site was sold to current owner Conquest, which applied to the Housing Delivery Authority for an 11-storey tower that would also contain shops and 10 affordable housing units, to be classified as a state significant development.

Willoughby state Liberal MP Tim James said the Housing Delivery Authority’s fast-tracking of the application last month was a betrayal of the community.

“The development is completely at odds with the character of this community,” he said.

“Local schools are overflowing. Castlecrag’s kids are being diverted to faraway high schools outside the catchment. This is a one-road-in-and-out local suburb. Castlecrag is not on a metro or train line.

“This is no way to do planning in NSW.”

NSW Planning Minister Paul Scully has hit back at James’ criticism, accusing the Liberal Party of being a group of “NIMBYs” who are “opposed to new homes for families and young people”.

Conquest spokesman Joshua Lyons, in a statement, said the Castlecrag development would ease the housing crisis in a part of Sydney where property prices were at a premium.

Lyons added that the current development proposal was in a “very early conceptual phase” and final designs would meet all environmental planning legislation.

“From our initial community feedback, Conquest has been inundated with people wanting more housing options in the Castlecrag area,” he said.

“There is a massive demand for housing, especially from downsizers who want to stay in the area and for young people who have grown up in the community and want to stay but there is a lack of housing choices.

“The average house price in Castlecrag is $4.5 million, which is out of reach for almost all first home buyers or couples with young children, for example.

The NSW Department of Planning, in approving the state significant classification, stated the project satisfied housing criteria, but noted further merit assessments may result in “development standards and dwelling yield lower” than the current proposed application.

Not all Castlecrag residents are opposed to the development, homeowner Matthew Keighery being among those in support.

“We need to do something about the housing crisis, particularly in areas like Castlecrag where nurses and childcare workers actually have places they can afford to live,” he said.

The furore over the development comes as Conquest lodged plans to the Housing Delivery Authority on Monday this week to redevelop the Eastlakes Shopping Centre in Sydney’s south into a 1000-unit development.

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