NSW Planning Committee Unlocks Thousands of Apartments in Parramatta Infill Zone

The NSW Department of Planning and Environment fast-tracked approval Wednesday for a mixed-use development corridor stretching along Church Street in Parramatta, marking the week's most significant urban planning intervention since the government intensified its push to ease Sydney's acute housing shortage.

The decision allows developers to build residential towers up to 18 storeys across a 2.3-kilometre stretch, potentially delivering 4,200 new dwellings within five years. Current median apartment prices in Parramatta sit around $785,000, a figure that has climbed 22 per cent since 2024 as Western Sydney continues absorbing Sydney's population overflow.

"This is about meeting demand where people want to live and work," a spokesperson for the Department of Planning confirmed in a statement, pointing to infrastructure investment including the Metro West extension and ongoing upgrades to Parramatta Station. The approval sidesteps local council review processes typically required for projects of this scale—a decision drawing mixed reactions from residents and advocacy groups.

Separately, the Strathfield Council rejected a proposal Monday to rezone residential land near Strathfield Station for six-storey apartment blocks, citing traffic and social infrastructure concerns. The decision highlights ongoing tensions between state-level housing targets and local objections, a pattern repeating across inner-west suburbs from Marrickville to Leichhardt.

Housing advocates cautiously welcomed the Parramatta decision but flagged affordability risks. "Zoning alone doesn't guarantee affordable housing," said a spokesperson for the Community Housing Industry Association. Current data shows 35 per cent of Sydney renters now spend more than 30 per cent of income on housing, compared to 27 per cent in 2019.

The government's Housing Acceleration Fund, launched last year, has similarly prioritised density over affordability requirements. Of 8,400 apartments approved under the scheme statewide, only 12 per cent have mandatory affordable rental provisions.

Parramatta's approval does include conditions requiring 5 per cent of apartments to remain affordable for ten years—a modest commitment that leaves broader affordability questions unresolved as the NSW government races to meet its target of 380,000 new homes by 2041. With Metro West construction accelerating through Westmead and Parramatta, planners expect the precinct will become a key employment hub, potentially justifying higher residential densities. Whether that translates into housing security for ordinary Sydneysiders remains the pressing question.

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