Affordable housing has become a central issue in a proposed $96 million redevelopment of the former Verona Cinema site in Paddington, where plans outline 14 designated affordable units to replace an existing block of 27 dwellings.
Existing Dwellings On The Paddington Site
The current three-storey building on the Oxford Street site contains 27 one-bedroom apartments. Material relating to the proposal notes these units are renting at about $700 per week.
Under the redevelopment plan, the existing structures would be demolished, with the exception of a retained two-storey façade at 17 Oxford Street. The site would then accommodate a seven-storey mixed-use building over three basement levels.
Proposed Affordable Housing Model
The new scheme includes 44 apartments in total. Fourteen of those are identified as affordable housing.
The affordable units are proposed to be rented for 15 years at 20 per cent below the median rental rate for the suburb. In New South Wales, affordable housing may be provided either at a minimum 20 per cent discount to market rent or capped at 30 per cent of household income. The proposal applies the discounted market rent approach.
Submissions note that the number of designated affordable units under the proposal would be lower than the current 27 rental dwellings on the site.
Comparison Between Existing And Proposed Supply
While the total apartment count under the redevelopment would increase to 44, the number of apartments designated as affordable would reduce compared with the existing 27 one-bedroom dwellings.
Concerns raised in submissions focus on whether the discounted rent model would meet affordability expectations in an inner-city suburb, and whether the designated affordable apartments would provide comparable amenity in terms of ventilation, sunlight and noise conditions.
Broader Redevelopment Context
The redevelopment proposal also includes four cinema theatres, a bar, retail premises, basement parking for 50 vehicles and three rooftop pools.
The application was lodged in late 2025 and publicly exhibited until 19 January 2026. It is currently under assessment, with a decision expected in 2026.
If approved, construction is intended to begin before the end of 2026 and be completed within three years.
Published 23-Feb-2026
