Sydney is set to receive a substantial boost in social and affordable housing after five projects backed by the Housing Australia Future Fund received planning approval. Together, the developments will create hundreds of new homes across several suburbs, forming part of a broader federal and NSW government effort to increase housing supply and address growing affordability pressures.
The approved developments in Caringbah, Belmore, Punchbowl, Hillsdale and Pagewood will significantly increase the number of dwellings currently occupying the sites. More than 80 per cent of the homes across the five projects will be designated as social or affordable housing, while the developments will collectively deliver almost four times the existing number of dwellings.
Caringbah will receive 164 social and affordable homes, replacing 38 existing dwellings, while Belmore will gain 145 homes after the redevelopment of a 24-dwelling site. Punchbowl is planned to receive 114 social homes, replacing 26 dwellings. The Hillsdale project will add 179 social homes in place of 39 existing dwellings.
The Pagewood development will provide the largest overall increase, with 224 homes planned for the site. This will include 84 social homes and 140 dwellings for the private market, replacing 82 existing properties. The project is expected to contribute to broader housing supply while maintaining a significant focus on social accommodation.
Delivery will involve Homes NSW working alongside community housing providers and private development partners. BaptistCare will construct and manage the Caringbah and Belmore developments, while Link Wentworth will oversee the Punchbowl project. Traders In Purple has been selected for Pagewood, with Coplex responsible for Hillsdale, while community housing providers for the latter two projects will be appointed by Homes NSW.
Demolition across the five locations is expected to begin before the end of 2026, with construction anticipated to commence around the middle of 2027. The combined developments are also expected to generate approximately 2,000 construction jobs, providing an economic benefit alongside the planned increase in housing availability.
The projects form part of the second round of Housing Australia Future Fund funding, which is supporting Homes NSW in delivering more than 2,500 new homes across 14 developments. Twelve of those projects are located in Greater Sydney, while additional developments are planned for Port Macquarie and Coffs Harbour. Construction has already started at two sites in Villawood and Padstow.
Federal and NSW authorities say the program represents part of a much larger national housing commitment. The Albanese Government is delivering 55,000 social and affordable homes across Australia, including more than 6,500 in NSW, while the Minns Government is progressing its $6.6 billion Building Homes for NSW program to expand housing supply and strengthen the public housing system.
The five Sydney projects are being positioned as an example of how government investment, planning reforms and partnerships with community housing organisations can accelerate housing delivery. Federal Housing and Homelessness Minister Clare O’Neil said the projects would help increase supply, while NSW ministers highlighted the importance of replacing ageing properties with modern homes close to employment, transport and essential services.
Community housing organisations involved in the developments have also emphasised the wider social benefits of secure accommodation. BaptistCare and Link Wentworth said stable housing can help individuals and families remain connected to employment, education and their communities. With planning approvals now secured, the projects represent another significant step towards expanding Sydney’s supply of long-term social and affordable housing.
