Green light for 450-unit tower as planning authority fast-tracks Ultimo waterfront approval

A significant residential tower in Ultimo has received development approval from NSW Planning, unlocking a 450-unit project that will reshape the precinct near Darling Harbour and Sydney's CBD fringe. The approval marks a turning point for inner-ring infill projects as the market grapples with clearance rates hovering at 65–72% and median prices hovering around $1.4 million across Greater Sydney.

The Pyrmont Street site, currently underutilised industrial zoning, will accommodate a 32-storey mixed-use building featuring 310 apartments, 85 co-living units, 8,000 square metres of flexible commercial space, and ground-floor retail activation. The project represents one of the largest approvals in the Ultimo precinct in five years, according to local planning records.

Developers flagged housing affordability constraints and undersupply in Sydney's inner west as justification for the scheme's density. With median prices in nearby Inner West suburbs—particularly Marrickville and Dulwich Hill—now regularly exceeding $1.3 million, pressure is mounting on planners to unlock new supply closer to employment hubs and transport corridors.

The approval comes amid a broader shift in planning strategy. Rather than fringe greenfield release, NSW authorities are increasingly fast-tracking infill projects within walking distance of Circular Quay, Central Station, and the CBD's office towers. The Ultimo development sits within a 15-minute walk of Darling Harbour's leisure and hospitality precincts, and just two kilometres from Barangaroo's financial district.

Co-living components have become controversial in Sydney's development landscape. While industry advocates argue they address young professional demand and reduce per-capita environmental impact, local objectors have raised concerns about transient communities and inadequate amenity. This project's split between traditional apartments and co-living units suggests planners are attempting to balance market demand with neighbourhood character.

Construction is expected to commence in 2027, with completion targeted for 2031. The project will contribute approximately $12 million in planning contributions toward local transport, child care, and public domain upgrades—funds that will likely benefit nearby Alexandria Park and the Pyrmont foreshore.

The approval reflects renewed momentum in inner-city residential approvals after 2024's slowdown. With Northern Beaches and Barangaroo markets showing premium pricing, developers view Ultimo's proximity to CBD amenity and relative affordability as attractive. For buyers, the influx of new supply may ease pressure on existing stock—though completion timelines suggest any market impact remains two to three years away.

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