The Waterloo Renewal Project is a major initiative of the NSW Government to renew existing social housing and enhance the strength and diversity of Waterloo.

Waterloo South is the first stage of the renewal and will deliver social housing alongside affordable and market homes, creating a diverse and inclusive community with quality homes for all. It will also offer green spaces, active streets, and community places that support health and wellbeing, while embracing the cultural identity and resilience of Waterloo’s people.

The renewal of Waterloo South is planned to deliver around 3,300 new homes, half of which will be social and affordable housing. It will significantly increase the number of existing social homes, at the same time adding new affordable and market housing to create a mixed and diverse neighbourhood.

The mix of new homes —measured by residential Gross Floor Area (GFA) — is designed to support a diverse and inclusive community, and features:

• Minimum 30% social housing (about 1,050 homes)
• Approximately 20% affordable housing (about 700 homes)
• Maximum 50% market housing (about 1,550 homes).

The existing 750 social housing dwellings in Waterloo South are nearing the end of their economic life and are no longer fit for purpose. They don’t meet modern accessibility, safety or sustainability standards. Redeveloping the area provides an opportunity to replace these homes with new, higher-quality housing that better supports residents now and into the future.

Replacing these homes in a mixed‑tenure precinct —where social, affordable and market housing are delivered together — is intended to create more inclusive neighbourhood and better social and economic outcomes.

The renewal of Waterloo South is designed to bring a wide range of long‑term benefits for local residents and the broader community, and to put people at the heart.

The renewal will deliver better homes, more green space, new community facilities and easier access to shops, services and jobs. It will include:

• New social, affordable and private homes that are modern and better suited to people’s needs
• New parks, community spaces and facilities for activities, learning and cultural events
• More shops and services close to home, including a supermarket, cafés and childcare
• Support for local jobs, training and Aboriginal businesses
• Safer, greener streets with more trees and places to walk and spend time outdoors
• Energy‑efficient homes that are more comfortable and cost less to run.

The NSW Government and the Waterloo Partnership are working together to deliver the Waterloo Renewal Project.

The Waterloo Partnership is a consortium led by Stockland, and includes Link Wentworth, Birribee Housing and City West Housing.

The Waterloo Partnership combines Stockland’s long history of creating communities with the expertise of Community Housing Providers, who have local and global experience in social, affordable and Aboriginal housing.

Each of the Waterloo Partnership organisations has a key role to play to deliver and operate the Waterloo Renewal Project.

• Stockland – leading design, planning and construction
• Link Wentworth – managing the new social housing buildings and providing wrap around support coordination
• City West Housing – managing the new affordable housing, owning some of the affordable buildings, and providing wrap around support coordination.
• Birribee Housing – managing 20% of the new social housing and 15% of the new affordable housing, which will be prioritised for Aboriginal households, and providing wrap around support coordination.

Homes NSW leads the NSW Government’s work to deliver and manage social housing, relocations and tenant participation in the Waterloo Estate.

Waterloo South will be delivered in stages, and each stage goes through a clear planning and approvals process.

The first step is the Concept Application and Rezoning, which sets the overall ‘big picture’ for the neighbourhood — things like where buildings and parks will go, how tall buildings can be, and the key strategies that will guide future design. This stage does not allow construction to begin.

Once the concept is lodged, detailed applications will be prepared for each stage of the development. These will show exactly how the buildings and public spaces will look and how they will be used. These applications must be consistent with the broader plans and strategies set in the Concept Application and Rezoning.

Sometimes early works applications may be used to approval initial works such as excavation, piling or site preparation. These may also be submitted stage‑by‑stage.

Homes NSW may also prepare Reviews of Environmental Factors (REFs) for specific works such as demolition or tree removal. An REF assesses the potential environmental impacts of such works and outlines how they will be managed or minimised.

The Concept Application sets the ‘big picture’ plan for Waterloo South. It provides the framework for future design, including building shapes and heights, the locations of parks, streets, community uses and shops, and key environmental goals for the precinct.

It does not approve any construction or detailed designs. Those decisions are made later through separate, stage by stage applications that must follow the framework set in the Concept Application.

A small number of planning rule changes are being proposed alongside the Concept Application to ensure the rules properly reflect the plans that have been developed. When the planning rules were finalised in 2022, some inconsistencies remained, which may limit the number of homes that can ultimately be delivered. Updating the rules now provides more clarity and certainty for each future stage.

Importantly, the proposed Rezoning does not increase the amount of development already allowed. Instead, it aligns the planning controls with the intentions of the Concept Application.

The proposed changes include:

• Updating heights and floor space controls so they match the plans shown in the Concept Application.
• Adjusting the minimum amount of non‑residential floor area from 12,000 to 10,000 square metres.
• Keeping the 5,000 square metres for community uses, while adding “Education Establishments” as another possible land use in this category.
• Updating the Waterloo South Design Guide so that it reflects the design shown in the Concept Application.

The Concept Plan is a key part of the Concept Application and sets out the overall layout for Waterloo South — where buildings, streets, parks and open spaces will go, as well as the general height and shape of buildings and the locations for shops and community facilities.

The updated Concept Plan keeps a similar overall layout to what was approved in 2022, but it includes several improvements to make the neighbourhood more comfortable, greener and better connected. These changes focus on enhancing everyday life for residents.

To do so, some buildings have been lowered or removed to create additional open space and improve the experience at street level, while others have been slightly increased in height to keep the overall density the same.

Key features of the Concept Plan design:

• more sunlight across homes, courtyards, streets and parks — including a significant increase in sunlight in the Stage 1 park
• more outdoor spaces for planting, seating and relaxation
• greater distance between buildings to improve privacy, sunlight, airflow and views
• wider ground‑level areas, like walkways between buildings and footpaths, creating a safer and more inviting feel with better visibility and natural light
• ability to keep more mature trees to retain Waterloo’s leafy character.

Once the Concept Application and Rezoning are lodged, the project will move into more detailed design and planning for each stage. Each stage will require its own detailed application, which will show exactly how apartment buildings, open spaces, shops and community uses will be designed and managed.

The community will have more opportunities to be involved in the detailed applications. There will be early engagement before designs are finalised, and formal consultation will occur when applications are lodged. Engagement for the Stage 1 detailed design is expected to begin in mid‑2026.

Community input is central to shaping the plans for Waterloo South. Engagement began with the first planning application and will continue through all future detailed design stages.

To help prepare the Concept Application and Rezoning, we spoke with the community and key stakeholders between October and December 2025. During this period, we focused on helping people understand the planning process and the existing planning rules (from 2022), sharing the draft Concept Plan, and asking whether it represented an improvement on the 2022 controls. We also sought feedback that could inform the final Concept Application before it was lodged.

A key part of the engagement also involved connecting with the local Aboriginal community, including Traditional Custodians, to help shape the Designing with Country framework.

Across the six week period, 19 engagement sessions were held with tenants, nearby residents, service providers, community organisations and other agencies.

Overall, there was strong community support for the updated Concept Plan, especially when compared to the 2022 plan. Many people felt it offered clearer improvements in access to sunlight, open space, safety and the quality of homes and public areas.

Feedback that sits outside the scope of the Concept Application and Rezoning has also been recorded and will be used to guide the detailed design stages — particularly decisions about community facilities, retail and services.

Common themes from the consultation included:

• A strong sense of place, culture and history, and a desire for Waterloo’s identity to be respected, celebrated and visible.
• The importance of staying connected, with tenants wanting the renewal to protect long‑standing relationships, support networks and community ties.
• High quality, secure and affordable homes that reflect the diverse needs of the community.
• Better access to services that support mental and physical health, reduce isolation and create safe, culturally appropriate spaces for social connection.
• Feeling safe and welcome day and night, with well lit streets, active and inclusive public spaces, and programs that bring the community together.
• Well-maintained green streets and open spaces, including shade, trees, rooftop gardens and parks that can be used all year round.
• Essential community facilities for health services, youth programs, creative activities, gatherings and cultural expression.
• Affordable and diverse retail, such as supermarkets, chemists, culturally diverse food options and local shops.
• Access to education, training and employment opportunities during and after the renewal.
• The need for fair and well supported relocations, including clear notice, tailored and culturally safe support, and a guaranteed right to return.

The community will have more chances to give feedback and to shape the plans for Waterloo South. Each stage will need its own detailed planning application. These applications will show the exact layout and size of apartments, the design of buildings and open spaces, as well as the types of shops and facilities for community use. We will start consultation for Stage 1 detailed design in mid-2026.

You can also contact us any time via the Stay in touch page.

Homes NSW will be demolishing buildings and carrying out associated site works in Stage 1, located in the south-western corner of Waterloo South.

The demolition of buildings in Stage 1 is expected to start in mid-2026 as part of a staged demolition program over 6-9 months. One building, located at 29 John Street, will remain in place for now as it continues to be used for short-term rental until approximately mid-2027.

The start and finish dates for Stage 1 construction are still to be confirmed.

The timing will depend on the preparation, lodgement and assessment of the detailed application for Stage 1 that must come first.

At this stage, we expect to lodge the detailed application for Stage 1 towards the end of 2026. This application would then be assessed by the Department of Planning, Housing and Infrastructure during 2027. A separate early works application —covering activities like excavation and site preparation — is planned for a similar timeframe.

We will provide more detailed timing later this year, once the planning process is further advanced.

Homes NSW is managing the tenant relocations process. Information about the relocation process including a support guide, process explainer and frequently asked questions can be found on the Homes NSW website.

Homes NSW contacts

Relocation team:
Call: 1800 295 406
Email: RelocationTeam@homes.nsw.gov.au

Waterloo renewal team:
Visit: Waterloo Connect at Shop 2, 95 Wellington Street, Waterloo
Call: 02 9384 4134
Email: waterlooconnect@homes.nsw.gov.au

Still have questions?

The team would be happy to assist in answering any other questions you have about the project. Please visit our ‘Stay in touch’ page to see all the ways you can connect with the team.