The Sydney supermarket sites set for 12,000 homes

Thousands of new units could soon tower over suburban supermarkets and shopping centres as recent changes to the state’s planning laws spark a string of proposals for new multistorey housing developments directly above retail hubs.

Bankstown Central, Eastlakes Shopping Centre and multiple Coles and Woolworths outlets are among a growing list of sites in line for a high-rise overhaul as developers and retailers capitalise on NSW government planning reforms aimed at boosting housing supply in and around town centres and transport hubs.

Across Sydney, more than 12,000 new units are currently proposed to be built directly above retail centres in multistorey towers standing up to 46 storeys.

The developments include plans for 1500 new units across four buildings on top of Bankstown Central, while rival retail giant Scentre Group, owner of Westfield, has plans for 2100 units above Westfield Hornsby and 1500 units in a redevelopment of Warringah Mall.

A Scentre Group spokeswoman said the proposals would supply a significant number of new dwellings close to existing transport and community infrastructure.

In Sydney’s south, a $650 million proposal has been lodged with the Housing Development Authority to redevelop Eastlakes Shopping Centre into a 1000-unit mixed-use development, accommodating about 2000 residents.

On the north shore, a similar large-scale redevelopment is planned for the Mandarin Centre in Chatswood with the site set for 300 new apartments as part of a 46-storey rebuild.

NSW Planning Minister Paul Scully said recent changes to the state’s laws have “helped unlock opportunities” to redevelop well-located sites such as retail centres into mixed-used housing projects.

But multiple councils have raised concerns over the scale of the current proposals including Bayside Council which fears the Eastlakes redevelopment could have a “major impact” on nearby homes and the surrounding traffic network.

Plans for a new Woolworths outlet on Victoria Road in Gladesville, topped with a 14-storey tower incorporating 171 units, has also faced staunch opposition from residents – including dozens who turned out for a public rally to voice their concerns over traffic congestion, overshadowing and disturbances to the nearby Our Lady Queen of Peace Catholic Primary School.

Planning documents by Fabcot – the development arm of Woolworths – stated the $175 million project would boost housing supply and provide residents with convenient access to shops and amenities.

But local home owner Scott Mackenzie said the development could block sunlight to surrounding properties and leave local roads choked with traffic.

“The size of the development is unlike anything in the area and there are real concerns that despite the valid concerns of the community, the proposal will just be rubber-stamped by the government,” he said.

Ryde councillor Roy Maggio said the proposal has understated impacts on traffic which is expected to come under additional pressure from other nearby developments including a multistorey proposal to rebuild Gladesville Coles with 500 units.

Other mixed-use retail development proposals in the works include plans to build 300 units in a redevelopment of the Edgecliff Centre and 411 units as part of a redevelopment of the Woolworths Eastwood outlet.

Multiple Coles supermarkets are also earmarked for high-rise construction including plans for 368 units in a 20-storey redevelopment of Coles Sutherland and 70 units on top of the Coles Ramsgate outlet.

UNSW Futures Research Centre professor Chris Pettit said the surge in multistorey units planned on top of retail sites was in line with shifting expectations among Sydney homebuyers who were increasingly willing to trade the dream of a quarter-acre block for high-density living.

He said owners of large retail centres and supermarkets were also “primed” to take advantage of the state’s housing reforms due to the large land parcels of the sites, making them easier to amalgamate into commercially viable, higher-density developments.

“Cities like Hong Kong and Singapore have been using this housing template for a long time and as Sydney grows to a city of more than six million people and commute times become longer, people are really starting to value proximity to amenities and shops,” he said.

Catherine Gilbert, lecturer of urban and regional planning at the University of Sydney, said while the developments could boost housing stock, questions remained about whether the multistorey projects would ease housing affordability in Sydney.

In some of the largest developments proposed – including the Mandarin Centre redevelopment in Chatswood – plans show 10 per cent of units would be offered as affordable housing for 15 years, at which point the units would return to full market rates.

Willoughby Council has written to the Department of Planning stating the 15-year cap was “inadequate” and failed to provide permanent affordable housing.

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