Paddington Residents Challenge $78-Million Housing Redevelopment

Paddington residents are raising concerns about a $78-million proposal that would replace long-standing affordable homes on Oxford Street with an eight-storey apartment complex, and many fear it will further reduce accessible housing in the neighbourhood.

The project, led by developer Toohey Miller, involves demolishing a three-storey building that currently houses 27 studio apartments and several townhouses, which have been described as genuinely affordable homes.

The development documents (SSD-97528708) state that the replacement building would include around 40 units, ground-floor shops, and a four-level basement car park for up to 78 vehicles. Only about 15 per cent of those units would be offered at below-market rent for 15 years, and residents say this raises questions about the long-term future of affordable housing in Paddington.

Heritage Scale and Issues

Community feedback shows broad concern about the proposed building’s scale, with locals noting the sharp contrast between its height and the surrounding heritage streetscape. Reports also outline worries about heritage impacts, overshadowing and traffic, and concerns that the development could sit awkwardly alongside Paddington’s terrace-lined streets.

Observers also highlight what they describe as a compressed public consultation period, noting that projects treated as State Significant Development receive just 14 days for community responses. They argue that the shortened process gives the neighbourhood limited opportunity to have its say.

Residents have circulated a “Stop the Paddington tower” petition and sought support from local councillors to oppose the plan, focusing on protecting Paddington’s character and what remains of its affordable rental stock.

Pressure for Housing

Commentary on housing in inner Sydney has highlighted a broader pattern in which long-established boarding houses and low-cost accommodation face pressure from redevelopment, and residents say the Paddington proposal reflects that trend.

Community advocates note that the project forms part of a broader conversation about the shrinking supply of genuinely affordable homes and its impact on long-term residents. Recent legal decisions, including a Land and Environment Court ruling that blocked the demolition of a nearby Paddington boarding house, have been cited as examples of closer scrutiny on redevelopment that would remove affordable housing.

While the Planning Minister has defended updated housing reforms as necessary to address Sydney’s broader housing shortage, critics say the trade-off between new development and the loss of existing affordable homes needs closer scrutiny.

Locals are calling for a careful assessment of the proposal before significant changes are approved in one of Sydney’s most recognisable suburbs.

Published 28-Nov-2025