Established in 1840, Victoria Barracks has defined the Paddington ridgeline for well over a century and a half. Now, with 15 hectares of prime inner-Sydney land on the chopping block as part of a sweeping nationwide defence divestment, residents, heritage advocates and housing groups are making clear they have no intention of staying quiet about what comes next.
Read: Paddington Barracks Sale Plan Puts Prime Inner-City Land in Play
The Paddington site is among 67 Defence Department properties earmarked for sale across the country, a plan expected to raise an estimated $3 billion for the Australian Defence Force. But for many in the inner-Sydney community, the prospect of one of the city’s most significant Georgian military precincts passing into private hands raises an urgent question: will this be a missed opportunity of the highest order?
A once-in-a-generation chance
At a community information session held in Paddington on 7 May, Defence representatives heard directly from locals. The feedback, according to Defence, will help shape transition planning. What that planning ultimately looks like, however, remains to be seen.
The calls from the public are pointed. Affordable housing and schools rank high among the preferred uses for the site, reflecting well-documented housing pressures in Sydney’s inner suburbs. The idea that 15 prime inner-city hectares could be unlocked for public benefit rather than private profit has struck a nerve with community and housing advocates alike.
The National Trust of Australia is among the organisations pushing for the site to remain under Commonwealth ownership, citing its heritage significance. Listed on the Commonwealth Heritage List in 2004, Victoria Barracks contains one of the most important collections of Georgian military architecture in Australia. The Army Museum of NSW, housed in the original District Military Prison built in 1847, sits within its grounds.
Prominent voices push back
Several high-profile figures have come out firmly against the sale. Former prime minister Paul Keating, state Labor MP Marjorie O’Neill and independent Member for Sydney Alex Greenwich have all spoken out. O’Neill has described the barracks as too important to sell, arguing the site belongs in the care of the Australian people. Greenwich has also voiced strong opposition to the sale.
Several online petitions opposing the divestment have been circulating, and more than 100 submissions have been made to a Senate inquiry examining the broader defence estate sell-off. Public hearings are underway this month, giving community groups, heritage organisations and housing advocates a formal avenue to press their case.
Defence has indicated that office and administrative staff currently based at the barracks will relocate to Defence Plaza Sydney, roughly two kilometres away, while cadets are set to move to Randwick Barracks, 7km away, or a suitable community venue. The department has said heritage obligations will be explored with future owners as a condition of sale, and that community engagement will inform decisions around public access to the site’s historical collections and buildings.
For many locals, those assurances do not go far enough. Heritage and housing advocates have warned that once a site of this scale and significance leaves Commonwealth hands, the ability to guarantee meaningful public access or affordable outcomes becomes far harder to enforce. Community groups are urging decision-makers to treat the divestment not simply as a property transaction but as what many have called a once-in-a-generation opportunity to do something genuinely visionary, blending heritage preservation with housing, education and open public space.
Read: Locals Invited to Shape Future vision for Victoria Barracks in Paddington
With community pressure building, the future of Victoria Barracks Sydney is far from settled. What is clear is that the people of Paddington, Surry Hills and the broader inner-Sydney community want more than assurances. They want a plan.
Published 27-May-2026
