At least 3,000 extra homes to be built under plan to repurpose office buildings

Thousands of extra homes could be built in northwest Sydney under rezoning plans for a major business precinct.

Office buildings in northern Sydney could be redeveloped into residences under the plan. Source: AAP / Joel Carrett

Key Points

• Prime development land in Sydney could be used for housing instead of offices.
• At least 3,000 extra homes would be delivered in the overhaul of plans for Macquarie Park.
• The area is currently zoned for commercial space.

Swathes of commercial and industrial land could be opened up for housing in NSW following one Sydney rezoning plan as workers shun offices in the post-pandemic era.

A section of prime development land at Macquarie Park, in the city's northwest, will be used for housing instead of offices under plans flagged by the state government on Thursday.

At least 3,000 extra homes would be delivered with the potential rezoning, replacing existing plans for commercial space for up to 23,000 workers.

Planning minister says revamp shows a path for 'doing density'

Planning Minister Paul Scully said with changes in the use of office space in "a post-COVID world" there was the opportunity to create a mixed-use zone where thousands of people could live.

"This is the way we should be looking at doing density into the future," he told reporters.

"Pieces of land aren't one use only ... we've got to make sure there's flexibility."

The proposal would also deliver eight hectares of public open space, a large multi-purpose indoor recreation facility and paths for walking and cycling, the government said.

The area is bounded by two metro stations, a university and a large shopping centre.

NSW premier: 'It's exactly the kind of city that we want to build'

Premier Chris Minns said up to 5,000 build-to-rent apartments could be developed on the Sydney site, which had access to jobs, open space and new public transport infrastructure.

"It's exactly the kind of city that we want to build for the future," he said.

Minns said the state had previously quarantined land for commercial and industrial development, but future development plans should mix land uses.

He said more rezoning announcements were to come.

Plan is a signal for councils to 'get out of the way'

Tom Forrest, from developer lobby group Urban Taskforce, said the announcement sent a clear message to councils to "get out of the way".

"New housing supply by adjusting the planning rules with new-found flexibility in zoning is the way forward," he said.

NSW needs to build 75,000 extra homes a year to meet its contribution to the target, but its current annual rate is only around 48,000.

Converting commercial space not free of complications

Government ministers have previously floated the idea of converting empty offices into social and other housing to increase stocks and improve affordability.

But experts have dismissed the approach as expensive and complicated as many office buildings are not easily reconfigured for residential use.

Public feedback on the proposal can be made until 10 December before a final plan is formed in the middle of next year.