NSW Public Land Sales Raise Concerns Over Affordable Housing Availability

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More than two-thirds of public land in New South Wales (NSW) deemed suitable for housing has been sold to private developers, prompting concerns about the state’s commitment to affordable housing. The figures, drawn from NSW Department of Planning data and revealed by the Greens analysis, show a significant shift in land use under the Minns government despite earlier promises to prioritise housing affordability.

The Guardian reported that much of this land had previously been identified by the government as potential housing sites, with an emphasis on addressing Sydney’s growing affordability crisis. Instead, the majority has been transferred to private developers, raising fears that future projects will favour high-end developments over accessible housing for low- and middle-income residents.

Greens housing spokesperson Jenny Leong criticised the sales as a direct contradiction of Premier Chris Minns’ election pledge to protect and expand public land for housing purposes. She warned that without strong government intervention, the trend would worsen the state’s housing challenges. “This is public land that should have been used to tackle the housing crisis,” she said, adding that selling it off to private interests reduces opportunities for social and affordable housing.

Government officials have defended the decision, arguing that private investment accelerates construction, generates economic activity, and provides funding for schools, hospitals, and infrastructure. They maintain that the revenue from these land sales can be reinvested into public services, indirectly supporting the broader community.

However, housing advocates caution that without strict conditions on developers, the market will continue to prioritise premium housing that remains out of reach for average residents. The sale of public land, combined with rising construction costs and property prices that outpace wages, has intensified pressure on first-time buyers and renters across NSW.

Urban planning experts stress that government oversight is crucial to ensure balanced development. Calls have grown for measures requiring developers to allocate a portion of new projects to affordable housing, preventing prime sites from being dominated exclusively by high-value projects.

The revelations have reignited debate over housing policy in NSW, placing the Minns government under pressure to demonstrate how it will deliver on its commitment to address affordability. With more than two-thirds of suitable land already in private hands, advocates argue that future housing strategies will require stronger regulation, transparency, and long-term planning to ensure that growth benefits all communities.