Green light for 487-unit tower near Central Station as planners reshape CBD fringe

A landmark planning approval handed down this week to a major developer will bring nearly 500 residential apartments to a consolidation site near Central Station, marking one of the largest single greenfield projects to win conditional approval in the CBD's immediate fringe in over two years.

The 487-unit tower, approved for a site straddling Pitt Street and the edge of Haymarket, comprises 312 apartments across the main residential component, alongside 175 serviced apartments designed for short-term rental. The development also includes 2,800 square metres of ground-floor retail and hospitality space, with planners noting the proposal will contribute to activation of the often-neglected eastern approach to the CBD.

The approval comes as Sydney's supply bottleneck continues to deepen. NSW median prices have climbed to approximately $1.4 million, with inner-ring suburbs commanding 40 to 60 per cent premiums. Haymarket, historically overlooked in favour of surrounding precincts like Surry Hills and Redfern, offers a rare window for density without the heritage constraints that have frozen development across much of the Inner West.

"This approval reflects a shift in how we're thinking about the CBD fringe," says one unnamed planning consultant familiar with the application process. The project's approval hinges on delivery of 120 affordable rental units—15 per cent of the residential component locked at below-market rates for fifteen years.

The development will also require significant transport and public domain contributions. Planners have flagged mandatory upgrades to pedestrian links connecting to Central Station's southern concourse, plus contributions to local streetscape improvements along Pitt Street.

Industry observers suggest the approval signals momentum for similar consolidation plays across the inner south. Two adjacent sites—one on Goulburn Street and another near the Haymarket precinct boundary—are currently in precinct planning with the Department of Planning. Both have been flagged as potential candidates for 250-plus unit residential schemes, though formal applications remain lodged.

The tower's design features a tapering profile to manage overshadowing impacts on nearby heritage buildings, including the historic Queensland Museum-listed structure at the Haymarket corner. Parking will be entirely basement-embedded at approximately 0.5 spaces per residential unit, reflecting strategic prioritisation of walkability and public transport access.

Completion is forecast for 2029, with early works commencing in early 2027. The approval, contingent on traffic modelling and updated acoustic reports, represents a significant addition to Sydney's projected new supply pipeline as the market navigates tighter clearance rates and persistent affordability pressure.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.