Sydney CBD Buildings Set for Demolition for New Town Hall Square

The Sydney CBD is poised for a major change as the city authority moves forward with its proposal to demolish several older commercial buildings to create a large public plaza across from Town Hall.

Sydney ratepayers have already spent over $36 million on the upkeep and improvements of these buildings that are now set to be removed for this major civic space.

Council voted in February to speed up the demolition work for the long-planned Town Hall Square, aiming to start in early 2028 and finish by early 2031. A total of $150 million has been set aside in the Council’s draft long-term financial plan for this project.

LM Clover Moore told a Council committee meeting that strong community support exists for this bold undertaking. He hoped that the state and federal governments would also contribute to what she believes will be a very important place for Australia’s global city.

Long-Term Vision

The idea for a civic square in this part of the city has existed since the early 1800s, and past administrations have acquired land on George and Park Streets for this purpose since the 1980s.

Council’s chief executive officer stated that $36.4 million has been spent in the last five years on the six properties marked for demolition, including $16 million on regular maintenance and ensuring they meet regulations and another $20 million on renovations and upgrades.

Council believes continuing to invest in buildings intended for demolition is not sensible. Ms Moore explained that the increasing costs of maintaining and upgrading these buildings to current standards and attracting new tenants are becoming too high.

Impact on Businesses and Residents

Among the businesses affected by these plans is the Woolworths Town Hall supermarket, a crucial shopping spot for people living and working in the Sydney CBD. Under its chief executive officer, Monica Barone, Council is looking to start the demolition within the current term, which could mean one less supermarket for nearly 30,000 residents in the area.

A spokesperson for Woolworths said that their Town Hall store is very popular and that they are talking with Council to understand the plans and the timeline better. Council has confirmed that these discussions with Woolworths are ongoing and will be considered as the project develops.

Broader City Transformation

The new Town Hall Square project builds on the recent pedestrianisation of George Street, which has created more than 26,000 square metres of public space. Council reports that this change has encouraged over $8 billion in private investment and has seen more people returning to the city centre.

Ms Moore said that pushing ahead with this project is a response to changes since the pandemic, such as high numbers of empty older office buildings and changing expectations from tenants. She noted that while current leases on the buildings on the Town Hall Square site cover their upkeep, the cost to upgrade them to meet current standards has become too expensive. Council believes it must reassess projects and adapt to changing circumstances to serve the city and its people best.

Community Reactions

Online discussions show a mix of opinions about the project. Some people are keen on improvements to the nearby town hall station. There are worries about the potential loss of the Woolworths supermarket and the underground food court, with some hoping the supermarket can remain in some form. Concerns have also been raised about the design of the new square, with some fearing it will be a large, unshaded concrete area that might not be very inviting, especially in warmer months.

Some have compared it to Melbourne’s Federation Square and questioned whether lessons have been learned about creating a useful public space. Others are more optimistic, hoping for a European-style plaza with cafes and restaurants to bring life to the area and provide a central gathering point for events and festivals. One commenter praised Council’s long-term approach to acquiring the necessary land for the project.

Upgrade of Sydney Square

The development of Town Hall Square is happening at the same time as a $35 million upgrade to Sydney Square, the plaza between Town Hall and St Andrew’s Cathedral, built in the 1970s. This upgrade aims to refresh the space with new granite paving, trees, and street furniture that matches George Street, continuing Council’s wider plan under the Sustainable Sydney 2030-2050 vision.

Ms Moore believes that as more people are encouraged to return to the city for work, tourism, and social activities, the need for a large civic square has never been clearer, stating that this new civic square will further their work in creating a city for people.

Published Date 14-May-2025