In August 2023, the severity of the housing crisis in New South Wales was exposed when new developments in Erskineville, designed to ease the housing shortage, were left unoccupied due to several defects. This caused frustration within the community and highlighted the urgent need for action to address the crisis.
Over 43,000 inactive dwellings have been identified across New South Wales, with Erskineville emerging as a focal point, highlighting the significant number of unoccupied properties in the suburb amid the region’s severe housing shortage.
This scenario is mirrored in Greater Sydney, including Parramatta and Heffron, where 22,000 homes stand empty. This reflects a systemic issue beyond housing scarcity to encompass affordability and accessibility challenges.
Projects like the Honeycomb Terraces and developments on Gadigal Ave exacerbate the housing situation in Erskineville. These projects were proposed as solutions to the housing crisis but have now become symbols of it.
A Look Back at the Erskineville Development
The City of Sydney approved the construction of Sugarcube Apartments and Honeycomb Terraces in Erskineville in September 2015. However, the site was contaminated, leading to strict site remediation conditions. Despite these requirements, construction began without full compliance, leading to ongoing discussions and modifications to environmental management plans.
In December 2019, the EPA advised on managing the contamination, followed by a proposal for staged occupation by Golden Rain. The City offered support for this modification in March 2020, which was approved in September 2020. This modification allowed for staged occupation and addressed environmental concerns, with further remediation work completed by September 2022.
In 2023, additional remediation work was completed, paving the way for addressing the environmental concerns that had previously halted occupancy. As of March 2024, a development application (D/2023/740) for the strata subdivision of Honeycomb Terraces is under assessment, aiming to manage residual contamination effectively.
Academic and Demographic Perspective
Experts like Professor Nicole Gurran from the University of Sydney argue that the crisis is less about the number of homes and more about their distribution and affordability. The revelation that luxury housing abounds while affordable options are scarce indicates a market imbalance.
Social demographer Mark McCrindle echoes these concerns, highlighting the surprising nature of these vacancies, especially in densely populated areas like Erskineville, rather than holiday destinations.
NSW Planning’s review of the short-term rental accommodation framework seeks to address the shortage. However, the efficacy of these measures remains to be seen, especially as developments in Erskineville await occupancy certifications, leaving potential residents in limbo.
Published 3-April-2024