May 2025 - Real estate agent Marko Maric and Woolooware residents, who banded together to sell their properties. Picture by Murray Trembath

Neighbours at Woolooware, who banded together last year to sell their homes following the introduction of new development rules, did not secure a buyer - and the windfall for which they were hoping.

Subscribe now for unlimited access.

or signup to continue reading

The agent who represented the group said developers were turned off by the fact the properties backed on to the train line, which meant more restrictive setbacks for building.

One resident said he thought their price expectations were also too high.

Seven adjoining properties were offered for sale in May 2025 soon after the Low and Mid Rise Housing Policy came into effect on February 28.

The properties, 44-52 Denman Avenue and 49a and 49b Woolooware Road, are just a few minutes' walk to Woolooware station.

A line of properties on Denman Avenue were offered for sale. Picture by Murray Trembath

Under the state government's new housing policy, six-storey apartment blocks are permissible within 400 metres of a nominated station or centre, and four-storey blocks are allowed within 800 metres.

Calculating that about 80 apartments might be able to be built on the 150 metre long, 3686 square metre site, the residents were hoping to achieve a price of about $20 million.

Marko Maric, of Pulse Property Agents, said, "I think one of the main turnoffs for developers was the site being on the railway line and dealing with the setbacks."

"The area is large enough, but the site is narrow and not a great shape," he said.

"Developers said they were looking for better sites."

Mr Maric said most of the residents were only keen to move if they got a high price.

"We subsequently sold one of the properties for a development that will have four terraces," he said.

One of the residents said he thought their expectations were too high and they may have been better to have waited a couple of years.

"We had a bit of interest, but the figures they were talking about were nowhere near what we were thinking we might get," he said.

The resident said the location was still excellent, and he was confident opportunities would present.

A Sutherland Shire Council report in April 2025 hosed down expectations that the Low and Mid Rise Housing Policy would provide widespread windfalls for home sellers.

"By radically increasing the capacity for housing, the reforms will effectively reduce the cost of acquiring development sites, which may reduce housing costs," the report said.

"There are now limitless sites where multi dwellings and residential flat buildings can be delivered and there are no minimum lot sizes for apartments."

The report said, as the reforms applied across Sydney, much of the Illawarra and Newcastle, "it is believed that more capacity for development has been released than the market can take up".

"Redevelopment will occur where the profit is highest," the report said.

"Take-up will most likely see pockets of concentrated development where the combination on underlying land value, yield and sales price make redevelopment lucrative."

The report said it would take some time to understand how the market would respond.