Urban Digest

Housing SEPP Bonus Unlocks 28.6m Project in Rose Bay

February 19, 2026

Architectural rendering of an eight-storey apartment building in Rose Bay featuring sandstone façades, deep balconies, landscaped terraces and street trees.

An $86.96 million apartment project in Rose Bay is seeking approval under the NSW Government’s infill affordable housing pathway, proposing an eight-storey building in a traditionally low-rise precinct.

Now on exhibition as a State Significant Development, the scheme would replace nine dwellings with 70 apartments on a 3,105sqm amalgamated site at Conway Avenue, Fernleigh Avenue and Carlisle Street. By allocating 15 per cent of gross floor area to affordable housing — equivalent to 17 apartments, or 24 per cent of the total yield — the project qualifies for the Housing SEPP’s 30 per cent height and floor space ratio uplift.

Because the capital investment exceeds $75 million, the Department of Planning, Housing and Infrastructure is the consent authority.

From Nine Houses to 70 Apartments

The proposal seeks consent to demolish nine existing dwellings and construct a single residential flat building rising to eight storeys above a two- to three-level basement.

The development would deliver 70 apartments comprising 10 one-bedroom, 26 two-bedroom and 34 three- and four-bedroom dwellings. Total gross floor area would reach 8,880sqm.

Basement parking would provide 130 car spaces, including nine accessible spaces, along with 77 bicycle spaces and seven motorcycle spaces. Vehicle access is proposed via a single driveway from Conway Avenue.

In addition, the scheme includes 2,168sqm of communal and private open space, representing approximately 70 per cent of the site area. Deep soil planting would account for 468sqm, or 15 per cent of the site. The proposal would increase canopy cover from 12 per cent to 34 per cent through new landscaping and street tree planting.

All 34 on-site trees would be removed, while four of five existing street trees would be retained and six new street trees planted.

15% Floorspace Unlocks 30% Uplift

The project’s built form outcome is directly tied to the affordable housing commitment.

Under the low and mid-rise ‘inner area’ provisions of the Housing SEPP, the site would otherwise be limited to 22 metres in height and a floor space ratio of 2.2:1. However, by providing 15 per cent of gross floor area as affordable housing, the development qualifies for the 30 per cent bonus controls.

As a result, the permissible envelope increases to 28.6 metres and 2.86:1 FSR, enabling the eight-storey form now proposed. The application states that the building complies with those maximum standards.

The 15 per cent affordable floorspace translates to 17 apartments, representing 24 per cent of the total dwelling mix. Those dwellings would be managed by a registered Community Housing Provider for a minimum period of 15 years.

Strategic Positioning Within Rose Bay

The site is zoned R3 Medium Density Residential under the Woollahra Local Environmental Plan 2014, where residential flat buildings are permissible with consent.

Importantly, the land sits within 365 metres walking distance of Rose Bay Town Centre and approximately 312 metres from bus services along New South Head Road. These proximity thresholds enable the application of the Housing SEPP’s low and mid-rise and infill affordable housing provisions.

The Environmental Impact Statement positions the proposal as consistent with the Greater Sydney Region Plan, the Eastern City District Plan and Woollahra Council’s Local Strategic Planning Statement and Housing Strategy. The development would contribute 70 dwellings towards state housing supply targets, including 17 affordable apartments.

The scheme also joins other recently lodged State Significant Developments in Rose Bay, indicating continued redevelopment interest in sites within walking distance of the town centre and transport corridors.

Built Form, Height and Streetscape Response

The proposed eight-storey building represents a substantial increase over the prevailing two- and three-storey dwellings in the immediate area.

The design adopts a 4.5-metre setback to Conway Avenue and Carlisle Street, while a variable setback to Fernleigh Avenue increases to 9.8 metres toward the western edge of the site. Upper levels are stepped back above the third and fourth storeys to reduce perceived bulk.

The massing is divided into three vertical components, while facade articulation and balcony treatments are used to moderate scale and provide visual depth. The proposal states that building separation distances comply with the Apartment Design Guide.

The site is not identified as a heritage item and is not located within a heritage conservation area. However, a local heritage property sits to the north-west. A Heritage Impact Assessment concludes that the development would not result in significant impacts on nearby heritage fabric.

Capital Investment and Construction Employment

With an estimated development cost of $86.96 million excluding GST, the project exceeds the $75 million threshold for infill affordable housing to be declared State Significant Development.

The Environmental Impact Statement estimates the project would support approximately 173 construction jobs during delivery. While no ongoing operational employment is anticipated beyond residential management functions, the scheme represents a significant capital investment in Sydney’s eastern suburbs apartment market.

Assessment Pathway and Next Steps

As a State Significant Development, the application is being assessed by the Department of Planning, Housing and Infrastructure.

The proposal is currently on public exhibition, with submissions invited from agencies, Woollahra Council and the community. Following exhibition, the proponent may be required to respond to issues raised before the Department makes a determination.