Urban Digest

8-Storey Apartment Project Lodged for Prominent Paddington Site

March 6, 2026

Proposed eight-storey mixed-use apartment building on Oxford Street in Paddington, with retail at street level and tree-lined streetscape.

A new mixed-use apartment development has been proposed for a prominent Oxford Street corner in Paddington, with a State Significant Development application now on public exhibition.

The proposal (SSD-97528708) seeks approval for an eight-storey residential building containing 40 apartments—10 of them designated as affordable housing—on a 2,172sq m site spanning Oxford, Gipps and Shadforth Streets.

The project would replace a mix of post-war flats, terraces and cottages with a residential building above ground-floor retail and a four-level basement. Planning documents indicate the residential component exceeds $75 million, meaning the project will be assessed by the NSW Department of Planning, Housing and Infrastructure under the State Significant Development pathway.

The application is currently open for public submissions.

Mixed-Use Development

Plans prepared by Smart Design Studio propose an eight-storey residential flat building with retail space activating the Oxford Street frontage.

The development would include 40 apartments, comprising 30 market dwellings and 10 affordable units, as well as 159sq m of ground-floor retail. Four basement levels would provide 83 car spaces, eight motorcycle spaces and 51 bicycle spaces.

The design also includes 737sq m of communal open space for residents. Vehicular access to the basement would be provided from Shadforth Street.

Most existing structures on the site would be demolished as part of the redevelopment, although a detached dwelling at 13 Gipps Street would be retained within the site boundary.

Planning Framework

The proposal relies on recent NSW planning reforms aimed at increasing housing supply in well-located urban areas.

The site sits within the Woollahra local government area and is primarily zoned R3 Medium Density Residential. Under the Low and Mid-Rise Housing reforms introduced in February 2025, R3-zoned sites located within 400 metres of town centres can accommodate buildings up to 22 metres in height with a floor space ratio of 2.2:1.

Because the project proposes an affordable housing component, it seeks additional planning incentives under the State Environmental Planning Policy (Housing) 2021. These provisions allow developments delivering at least 15 per cent affordable housing to receive up to 30 per cent additional height and floor space.

The proposal seeks to exceed standard height controls through these provisions and includes a clause 4.6 variation request, with the proponent citing the site’s sloping topography and design response.

Heritage Context

The site sits on the edge of the Paddington Heritage Conservation Area and directly opposite the heritage-listed Victoria Barracks precinct along Oxford Street.

Although the site itself is not heritage-listed, its location within a heritage-sensitive area means the proposal’s scale and visual impact will be closely considered during the assessment process.

Planning documents state the design responds to the surrounding urban context by orienting the building towards Oxford Street, retaining existing street trees and introducing a nine-metre setback along the northern boundary to transition toward neighbouring terraces.

Existing Site

The development site currently contains a mix of residential buildings reflecting different phases of development along Oxford Street.

Existing structures include a three-storey residential flat building at 160 Oxford Street containing 27 studio apartments, a row of two-storey terrace houses at 142–148 Oxford Street, a detached dwelling at 13 Gipps Street and a two-storey cottage at 6 Shadforth Street.

These buildings largely represent post-war redevelopment along the Oxford Street corridor and contrast with the nineteenth-century terraces that characterise much of Paddington’s surrounding residential streets.

Affordable Housing Component

The proposal includes 10 affordable apartments, representing 25 per cent of the total dwellings and at least 15 per cent of the project’s gross floor area.

The units would be managed by a registered community housing provider for a minimum period of 15 years.

Planning documents state the affordable housing component is intended to support workers employed in nearby institutions such as St Vincent’s Hospital and local education facilities.