Aussies have been told that building more apartments will make housing more affordable… there’s just one big problem
The NSW Government’s plan to bring down house prices in Sydney’s CBD will see affordable housing demolished and replaced with new luxury apartments.
Mark Skelsey, 56, has lived in the city’s inner-west for 17 years and has witnessed it grow from a relatively affordable area to a neighbourhood gripped by surging house prices.
The long-time local has kept a keen eye on the development of traditionally ‘affordable’ suburbs around Sydney and has even written a book about it.
So he, like many other residents, felt hopeful when the government unveiled its Transport Oriented Development (TOD) plan in May 2024, which proposed building a series of new developments around train stations in the inner-west.
The government said the TOD would apply to suburbs within ‘400 metres of 37 stations to deliver more affordable, well-designed and well-located homes’.
But in a kick to the guts to residents, only two per cent of the homes in the new builds are required to meet the criteria of ‘affordability’.
The first development application to be lodged under the TOD scheme is for a eight-storey block on Warren Road, Marrickville, of which only eight out of 43 apartments will be considered affordable upon completion.
The address is currently home to 17 low-cost rental apartments.
Long-time inner-west local Mark Skelsey (pictured) has shared concerns a plan to boost housing supply could see existing sites for affordable homes targeted for redevelopment
A development application plans to replace 17 affordable apartments with 43 new apartments, of only eight of will be considered ‘affordable’ (an artists impression is pictured)
‘The idea is that providing additional housing supply will bring down the price of housing,’ Mr Skelsey told the Daily Mail.
‘But the concern is that it will involve the redevelopment of existing affordable housing, leading to an overall reduction of affordable housing.
‘They’ve tried to argue there are currently 17 affordable apartments providing 17 bedrooms and the eight affordable apartments in the new development will also provide 17 affordable bedrooms.
‘However, there will still be less apartments for an affordable price.’
Assuming most of the eight affordable apartments have two bedrooms, their market price in Marrickville is significantly higher than that of affordable one-bedroom units.
The median price of a two-bedroom apartment in Marrickville is $1,022,500, compared to $699,000 for a single bedroom, according to realestate.com.au.
‘The inner-west can be a pretty expensive place to live so it’s fair to say it needs more housing,’ Mr Skelsey said.
‘However, the concern is the additional housing will target the few remaining sites that currently provide low-cost housing.
The first development application to be lodged with the Inner West Council is for a high-rise unit complex on Warren Road in Marrickville (the current site is pictured)
The 17 affordable one-bedroom apartments (pictured) would be replaced by just eight under a development proposal lodged under the government’s Transport Oriented Development plan
‘If that happens, you’re basically providing more homes for people who can keep up with market prices and kicking out people who need affordable housing.’
Development applications under the TOD scheme can be lodged directly with NSW Planning but are largely up to local councils to approve or deny.
NSW Department of Planning, Housing and Infrastructure told the Daily Mail that affordable homes were a prerequisite for applicants.
‘The NSW Government has mandated affordable housing outcomes in all Transport Oriented Development locations, as well as other well-located areas for the first time in NSW, with the goal to increase the overall numbers of affordable homes in the state,’ a spokesman said.
‘The application is under assessment by Inner West Council, and they will need to determine if there is no net loss of affordable housing, with reference to the Housing State Environmental Planning Policy.’
Inner West Council confirmed the application for Warren Road, Marrickville, has been submitted to the council but will not be decided by councillors.
‘A Development Application was lodged with Council on September 25, 2025,’ a council spokesman said.
‘Councillors are legally removed from the Development Application process.
‘Council officers will assess the application and then refer the matter to the Local Planning Panel for determination.
‘At this stage, the likely determination date is unknown.’
Daily Mail has contacted Corona Projects comment.
