Lavender Bay Residents Raise Concerns Over Proposed State Significant Developments
Four proposed State Significant Developments (SSDs) in Lavender Bay have sparked opposition from local residents, who warn that the projects could overshadow heritage homes, alter the suburb’s character, and strain existing community infrastructure.
Residents Opposing Lavender Bay Overdevelopment (ROLBO) has highlighted concerns regarding the impact on vulnerable tenants. The planned Mackenzie Street development would replace the 31-unit St Francis Xavier Terrace Retirement Village, while the proposal at the corner of Lavender and Middlemiss Streets would affect 50 units, including two social housing blocks. The developer’s Scoping Report notes that no agreement has yet been reached with Homes NSW regarding the future of these properties.
The Lavender and Middlemiss Street site, adjacent to late-19th-century terraces, includes a proposed 20-storey, 70-metre tower. Additional plans involve replacing North Sydney’s Blue Street office buildings—the 14-storey Zurich and 12-storey Fujitsu towers—with new 29- and 30-storey towers, respectively. Residents argue that these developments, combined with the Mackenzie Street project, would significantly reduce natural light and privacy for nearby dwellings.
“It is important to note that ROLBO is not opposed to development,” said resident Ian Curdie. “We just ask that it is appropriate for, and sympathetic to, its location. These sites were declared SSDs based on their proximity to railway stations – in other parts of Sydney, the Low and Mid-Rise Housing Policy would dictate a 24-metre maximum limit.”
Curdie also expressed concern about the cumulative impact of four large-scale projects proceeding simultaneously. “The combined effect of multiple construction sites and the subsequent population influx will overwhelm our suburb’s already inadequate infrastructure,” he said.
Under the NSW planning system, SSDs are projects that meet specific thresholds or are located in defined areas, such as near railway stations. SSD designation shifts assessment responsibility to the Department of Planning, Housing and Infrastructure, with final approval made by either the independent Planning Panel or the Planning Minister. While standard local planning controls, including height or floor-space limits in council Local Environmental Plans, are not binding for SSDs, they are considered during assessment.
By contrast, the NSW Government’s Low and Mid-Rise Housing Policy generally caps building heights at 24 metres in designated areas. Residents have argued that the proposed Lavender Bay towers far exceed these limits, potentially setting a precedent for similar high-density developments elsewhere.
“The proposals effectively double the size of existing buildings in Blue Street and Middlemiss Street, exceeding the previous permissible height by 483%,” Loewenthal said. “That is enormous, especially when these towers sit alongside modest terrace houses.”