Green Light for $950 Million Alexandria Towers Near Sydney CBD

Sydney’s skyline is set for another dramatic transformation after City of Sydney Council last night approved a $950 million mixed-use development on McEvoy Street in Alexandria, less than four kilometres from the CBD.

The move comes amid mounting pressure to boost housing supply across the inner-ring, where vacancy rates have hovered below 1.7% for six consecutive quarters. Major developers and planning officials have been under scrutiny after a string of high-profile projects stalled last year, fuelling anxieties among renters and homebuyers. With rental demand surging and supply constraints worsening in nearby suburbs like Erskineville and Redfern, the Alexandria project’s approval signals a shot in the arm for new construction pipelines.

Alexandria’s Next Act

The approved master plan covers six hectares around the historic Alexandria Hotel and will deliver eight new residential towers ranging from 12 to 19 storeys, alongside 16,000 sqm of office and retail space. The site sits between McEvoy Street and Fountain Street, close to the new Green Square Library and several live music venues including The Lord Raglan. At its core: 750 apartments, 23 of which are earmarked for affordable housing under the City’s Growing Sydney Program.

Developer Crown Group, who also completed Infinity by Crown at Green Square in 2019, will partner with the City to build a new public plaza and subsidised rehearsal space for local arts organisations. The scheme also includes a 2,500 sqm landscaped park and upgraded cycleways along Bourke Road, aiming to sync with upcoming City of Sydney Green Connect initiatives planned for 2027.

Numbers that Move the Market

Realestate.com.au data puts the current median unit price in Alexandria at $910,000 as of June, compared to $1.4 million statewide and $2.09 million in bordering Surry Hills. With ongoing strong interstate and overseas migration—ABS figures show over 25,000 new arrivals settled in central Sydney in 2025—demand for quality stock near major transport and employment hubs remains red-hot. Property analysts from PRD Nationwide say the new development could help relieve pressure on weekly apartment rents, which hit a median of $830 this winter in the inner-city corridor.

The project is expected to create more than 1,200 construction jobs until its initial completion phase in late 2028. Pre-sales for Stage One, which includes 140 units with ground-floor cafes, open to buyers later this month. “Interest is expected to be high, particularly from first-home buyers using shared equity under the NSW Government’s Help to Buy scheme,” an executive close to the project said off-record.

What’s Next for Buyers and Local Residents?

Demolition on the derelict warehouse sections of the McEvoy Street site could begin as early as September. Local residents have been invited to public information sessions at Alexandria Town Hall on July 11 and 16. The City of Sydney will also launch an online consultation hub from next week, where issues like increased traffic on McEvoy Street and potential pressures on the Alexandria Park Community School catchment are expected to draw feedback.

For buyers eyeing off-the-plan deals, property advisers suggest keeping close tabs on developer release schedules and eligibility for government affordability programs. Renters and families hoping for more affordable stock will be watching to see if this project prompts further planning approvals in nearby precincts like Waterloo and Zetland, still tight on listings. All signals suggest the Alexandria approval could mark a turning point as Sydney attempts to match housing supply to spiralling demand—one precinct at a time.