The Minns Labor Government has announced plans to deliver up to 8,500 new homes at Bays West in inner Sydney, directly above the under-construction Bays West Metro Station, marking what it describes as the first new suburb built in inner Sydney in decades.
The proposal would transform underutilised, government-owned port land on Sydney Harbour into a mixed-use precinct combining housing, public open space, cultural facilities and retained working harbour operations. A minimum of 10 per cent of the new homes would be allocated as affordable and essential worker housing.
The announcement represents one of the most significant urban renewal projects currently proposed in New South Wales, as the state government continues efforts to address housing supply pressures in well-located areas close to employment and transport.
Housing Supply in a Strategic Location
The Bays West precinct sits just minutes from the Sydney CBD, with direct connections to the metro network, ferries, walking and cycling routes. Government leaders say this level of connectivity makes the site particularly suitable for higher-density housing.
Premier Chris Minns said the location was central to the project’s rationale.
“Right above a new metro station and minutes from the CBD, we’re delivering thousands of homes where people actually need them – close to work, close to services and close to transport,” he said.
The government has framed the project as part of a broader strategy to rebalance housing growth towards established, well-serviced inner-city areas rather than relying solely on greenfield expansion at the urban fringe.
According to the announcement, the Bays West project builds on a pipeline of housing capacity created through 68 state-led rezonings, Transport Oriented Development areas, the Low and Mid-rise Housing Policy and the Housing Delivery Authority. Collectively, these initiatives are intended to enable capacity for more than 620,000 homes across the state.
Affordable and Essential Worker Housing
At least 10 per cent of homes within the precinct will be reserved for affordable and essential worker housing. The government has indicated that this will include homes for nurses, teachers, paramedics, firefighters and police.
Minister for Housing and Homelessness Rose Jackson said embedding affordable housing from the outset was a key principle of the development.
“We want Sydney to remain a city where nurses, teachers, hospitality workers and young families can afford to live,” she said. “That’s why affordable and essential worker housing will be built into this precinct from the beginning, not treated as an afterthought.”
The inclusion of essential worker housing reflects growing concern across metropolitan Sydney about the distance between employment hubs and more affordable housing options. Rising property prices and rents have increasingly pushed key workers further from the CBD, raising transport and workforce challenges.
While 10 per cent affordable housing has been confirmed as a minimum, further detail on tenure models, eligibility criteria and delivery mechanisms is expected to form part of the master planning process.
Balancing Renewal with a Working Harbour
A central feature of the proposal is the commitment to retain elements of Sydney Harbour’s working port operations while reconfiguring the use of the land.
Bulk port operations on Glebe Island, including cement, gypsum and sugar handling, will cease by no later than 2030. The government has stated it will work with industry to minimise disruption and ensure continuity of supply during the transition.
To support this shift, $270 million has been committed to improve road connections around Port Kembla and to investigate expanded rail freight capacity. This is intended to accommodate the relocation or consolidation of certain port activities.
Working harbour operations across the Bays West precinct will be consolidated primarily into White Bay. These will continue to include boat maintenance, marine construction, tug boat operations and emergency services functions.
Deep-water berths will also be retained to preserve Sydney Harbour’s strategic operational capability.
Treasurer Daniel Mookhey said the project aimed to balance public ownership with economic function.
“Bays West is about putting publicly owned land to work for the people of New South Wales – delivering thousands of new homes while keeping this strategic harbour site in public hands for generations to come,” he said.
Public Access to the Waterfront
For more than a century, much of the Bays West area has been closed to the public due to industrial use. The new precinct proposes to open significant sections of the waterfront for public access, including new parks and foreshore spaces.
Planning documents outline a focus on pedestrian and active transport connections, including improved links to Rozelle, Balmain and Glebe, as well as an active transport connection across the Glebe Island Bridge to the CBD.
The government has stated that the master plan will integrate homes, jobs, infrastructure and public spaces to ensure coordinated delivery.
White Bay Power Station Revitalisation
The historic White Bay Power Station is set to play a central role in the precinct’s cultural identity. The government plans to revitalise the former industrial site as a cultural and community destination, anchored by night-time entertainment and creative industries.
Minister for Transport, the Arts, Music and the Night-time Economy John Graham said the combination of transport connectivity and cultural activation would help shape the precinct’s character.
“With the metro, ferries, walking and cycling, this will be one of the best-connected communities anywhere in Australia,” he said.
A new staging area will also be established in White Bay to secure major events such as New Year’s Eve fireworks and Vivid for decades to come.
The cruise terminal will remain in its current location, and new shore-power facilities are being installed to reduce noise and emissions from visiting ships. The Sydney Heritage Fleet will be offered new premises within White Bay as part of the consolidation process.
Master Planning and Governance
The precinct will be guided by an international design competition as part of the master planning process. The government has indicated that this will help ensure high design standards and coordinated delivery of infrastructure and housing.
A new delivery agency will be established in the coming weeks to oversee the project. Once formed, publicly owned land within the precinct will be transferred to this agency. The body will report to Minister for Lands and Property Steve Kamper, who already oversees major precinct renewals including Blackwattle Bay and Barangaroo.
Minister for Planning and Public Spaces Paul Scully described the project as city-shaping renewal.
“The master planning process will coordinate delivery and guide a good mix of homes and jobs, so the transition of the new precinct is smooth for industry and future residents,” he said.
Further details on staging, developer involvement and timelines are expected as the agency is established and planning progresses.
A Shift in Inner-City Housing Strategy
The announcement reflects a broader shift in state policy towards higher-density development near major transport infrastructure. Transit-oriented development has become a central pillar of housing strategies in several Australian jurisdictions, with the aim of increasing supply without expanding the urban footprint.
By placing up to 8,500 homes directly above and around a metro station, the Bays West proposal aligns with this approach.
However, large-scale urban renewal in established inner-city areas can attract both support and opposition. The Premier acknowledged that not all residents would welcome change.
“We understand that not everyone will welcome change, but cities don’t stand still,” Minns said.
Public consultation, environmental assessments and detailed design phases will shape how the project evolves in coming years.
Looking Ahead
If delivered as proposed, Bays West would become one of the most significant additions to Sydney’s housing stock in a central location in recent decades. It would combine housing, cultural facilities, transport integration and retained harbour operations within a single, master-planned precinct.
The cessation of certain bulk port operations by 2030 provides a timeline for transition, while the metro infrastructure under construction establishes the transport backbone for future residents.
As the master planning process begins and the new delivery agency is established, further clarity will emerge around staging, funding structures and private sector participation.
For now, the Bays West proposal signals an ambitious attempt to use publicly owned harbour land to address housing supply pressures while retaining key elements of Sydney’s working waterfront.
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