Large developments power Sydney housing approvals
- Sydney (28 April)
Regulators approved development applications for 11,158 dwellings in January-March 2026, up 4.5% on the year, largely because of two mixed residential and commercial projects in Marrickville and Cumberland, respectively.
Developers in the Inner West – including Marrickville – and Cumberland secured approval to develop 2,665 units over the quarter, up from just 195 units over the same period in 2025, data from the New South Wales (NSW) Department of Planning, Housing and Infrastructure (DPHI) show.
Close to a quarter of all approved dwelling development applications in Sydney came from the two areas, up from 1.8% a year ago, DPHI data show.
NSW’ Independent Planning Commission approved the Marrickville Timberyards, an integrated 1,166-unit residential and commercial precinct, in mid-February, with the support of Sydney YIMBY, a housing group. The project will include over 100 affordable units, artist facilities, and publicly accessible space, NSW Premier Chris Minns said on 20 March.
Marrickville Timberyards sets a precedent that we can build precincts around the new Southwest Metro line – which will open in 2026 – that are not dominated by car storage, the group said in 2025.
Property developer RTL Co aims to complete Marrickville Timberyards in 2029.
On 31 March, a month after approving the Marrickville Timberyards project, DPHI okayed Cresent Parklands, a 1,227-unit residential and commercial complex in Cumberland. The project will include 201 affordable apartments and a public park, property developer Tiberius said in its development application.
The NSW Government previously declared Marrickville Timberyards and Cresent Parklands to be State Significant Developments (SSD), transferring approval authority away from local councils. The state generally uses SSDs to streamline economically significant projects, including mines, large housing developments, and data centres.
Housing development approvals in Parramatta and The Hills, in Western Sydney, remained at over 1000 units, respectively, in January-March, but fell by about 30% on the year. Approvals in Parramatta also declined on the year in September-December 2025, from 1005 units to 728 units.
NSW aims to increase Greater Sydney’s housing supply by 263,400 dwellings – relative to July 2024 levels – by June 2029. Authorities in the state have approved 88,485 units for development and 54,133 units for construction in the city since July 2024.
The NSW Government has also rezoned land around six transport hubs in Sydney to support developments in recent years, and plans to rezone another two areas. Its scheme will expand the city’s housing capacity by nearly 60,000 homes over 15 years, according to the Government.
NSW’ push for new housing comes alongside persistent rental inflation. Weekly asking rental prices averaged A$800 in the city over January-March, up 2.6% on the year and 36% higher than in Melbourne, data from real estate service Domain show.
By Avinash Govind