The prime slice of coastal Sydney with roads, paths – and almost no homes

When plans were first unveiled to develop a prime stretch of coastal land in Sydney’s south-east into hundreds of new homes, confidence appeared high, as construction crews got to work building all the roads, footpaths and residential lots in preparation for an influx of new residents.

But more than a decade later, only a handful of homes have been completed, the footpaths are largely empty, and the streets are frequented mainly by the occasional street sweeper, cyclist and parents taking their teenage children for supervised learner driver lessons.

Amid debate over new housing in Sydney’s eastern suburbs, the site’s owner and Australia’s richest property developer, Harry Triguboff, is embarking on a new plan to develop the land after three previous proposals to build thousands of apartments failed to gain planning approval and faced strong community opposition.

Through his company, Meriton, Triguboff has submitted a new proposal for 505 homes in buildings of up to five storeys on the coastal site overlooking Little Bay Beach and the fairways of The Coast Golf Club.

The plan, which includes an initial stage of 100 homes, three of which would be affordable dwellings, received initial support this month from the NSW government’s Housing Delivery Authority, a planning body established to boost housing supply through streamlined assessments that bypass local councils.

The proposal marks a significant departure from the scale of Meriton’s previous plans, which included an application for 1900 apartments rejected by the Sydney Eastern City Planning Panel in 2021, a rezoning bid for 1600 homes in 2023 and an application for 2600 apartments across two 27-storey towers last year.

Instead, the latest proposal brings the development closer to the scale of an approved masterplan Meriton inherited when it acquired the site for $245 million in 2017, which permitted up to 450 homes in buildings of up to five storeys.

While Meriton declined to comment on its latest proposal, the company has consistently maintained its commitment to developing the site.

The change in scale has been cautiously welcomed by some residents including Olde Lorenzen, a founding member of community group Save Little Bay which has spent years campaigning against high-rise development at the site.

“When residents bought their homes here, they did so expecting a mix of low and medium density housing in the area, not thousands of units in buildings up to 27 storeys,” he said.

Lorenzen said residents wanted assurances that the state government’s planning pathway would not pave the way for further increases in density.

“It’s a step in the right direction, but our concern is that Meriton is using a state-significant pathway and we’ll be looking for clear assurances that what begins as 505 homes doesn’t become the start of a push for even greater density.

“We’re not anti-development, we just want sustainable development for the site, which is in a sensitive coastal environment.”

The prolonged vacancy of the site had also created problems for nearby residents, he said, due to issues including trespassing and antisocial behaviour.

“Even though it’s fenced off, it’s regularly accessed by cars, residents, and trespassers,” he said.

“There’s a playground on there that is falling apart, the grass is overgrown, we’ve had issues with overflowing bins and vermin, and there’s crime and drug trading going on down there at night. It’s definitely not in a good state.”

Last week, the NSW Coalition opposition announced plans to close the Long Bay Correctional Complex, located about 200 metres north of Little Bay Cove, and redevelop the site for 12,000 homes if elected in March 2027.

NSW Planning Minister Paul Scully dismissed the proposal as a “fantasy”, arguing it would cost taxpayers billions of dollars and create excessive density without adequate infrastructure.

But he expressed support for the Little Bay development.

“It is always good to see underutilised land being activated for new housing,” Scully said.

“From downsizers to families and young people, everyone should have the option to live in the community they choose.”

He stressed, however, that the Housing Delivery Authority’s initial support did not guarantee approval, with the proposal still subject to merit-based assessment and community consultation.

Maroubra Labor MP Michael Daley, who has previously criticised Meriton’s larger development plans, also welcomed the reduction in building heights.

“If Meriton’s current application broadly represents what was represented in the master plan, that would be a good result,” he said.

“What I don’t want to see is them gaining an approval and then coming back and asking for multiple changes.”

Randwick Mayor Clare Willington criticised the use of the Housing Delivery Authority pathway, warning it would remove local oversight and “take planning decisions out of the council’s hands.”

“Little Bay is a community, not a blank canvas for developers. They deserve a guarantee that a modest proposal today won’t become something very different tomorrow,” she said.

Long-time resident Peter Fagan said while lower building heights were a positive compromise, local infrastructure remained a pressing concern.

“Adding another 505 homes will put enormous pressure on roads that are already heavily congested, as well as schools and hospitals,” Fagan said.

“Sydney needs more homes, but it also needs responsible planning. The two should go hand in hand.”

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