Cracks and Concerns Over Housing Density in Rose Bay

Residents in Rose Bay are raising concerns about ongoing and proposed housing developments, citing risks from excavation and a lack of supporting infrastructure.



Background of Development Pressure in Rose Bay

Rose Bay has been identified for increased housing density under the state’s low- and mid-rise policy, which aims to deliver new homes near transport and services. The suburb has 13 apartment applications in the pipeline and recent multi-lot sales have drawn interest from developers. In one case, 12 properties on Wilberforce Avenue and Dover Road covering 5,978 square metres were listed for $165 million.

Sydney development
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Cracks, Collapses and Hydrogeological Risks

Residents have reported structural damage near development sites, including cracked walls, flooding in basements and dislodged plumbing. On Richmond Road, a $4 million four-storey building was halted under a stop-work order in 2023 after excavation for a basement car park was linked to cracks in neighbouring units.

On Wilberforce Avenue, the front walls of a house collapsed after excavation began next door in 2023. The property, purchased for $6 million, was later demolished and is now being replaced by duplexes. Local groups argue these incidents highlight the suburb’s shallow water table and soft ground, warning that further excavation may risk stability.

A hydrogeological and geotechnical study commissioned by Woollahra Council in 2024 found that excavation and dewatering for underground car parks “may have adverse impact on the landform stability”. The report noted cumulative effects could be significant.

Community Concerns Over Infrastructure

Frustrations grew at a forum in Double Bay on 12 June 2025, where more than 180 residents met to discuss the rezoning of Rose Bay. Locals questioned the suburb’s designation as a “town centre” suitable for higher density, arguing that it lacked adequate infrastructure.

Concerns raised included the absence of a full-scale supermarket, limited transport connections, and pressure on local services such as roads, stormwater systems and schools. Residents said the policy could alter the scale and character of the area without addressing these constraints.

Rose Bay housing
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Calls for Greater Transparency

Woollahra Council has submitted multiple information requests to clarify why Rose Bay was classified for higher-density development. Officials said responses have been incomplete, with little explanation of the decision-making process.

Council has also proposed commissioning further studies on excavation impacts and coastal vulnerability, while seeking legal advice on whether development approvals could be delayed until risks are addressed.

Divided Community Sentiment

While some residents see financial opportunities in rising land values, others believe the policy could make Rose Bay less affordable and less safe. The Save Rose Bay action group has warned of uninsurable risks and drawn comparisons to Mascot Towers, which was declared uninhabitable in 2019 after major cracks.

Public discussion has also highlighted differing views. Supporters of higher density argue that Rose Bay’s location near the city makes it suitable for more housing, while critics warn that construction risks, traffic and affordability issues outweigh potential benefits.

Ongoing Uncertainty



As Rose Bay faces increasing development pressure, the future of projects remains uncertain. Authorities are pursuing further studies, while residents continue to raise safety and infrastructure concerns. With 13 new apartment proposals under consideration, the balance between housing targets and local stability remains unresolved.

Published 21-Aug-2025

Rose Bay Residents Confused by Push for High-Density Housing

A push to reshape Rose Bay into a high-density housing hub has sparked frustration and confusion among locals, who say their village lacks the transport and shopping infrastructure needed to support such growth.



The concerns boiled over during a packed community forum held at Double Bay Bowling Club on Thursday, 12 June, where more than 180 residents gathered to question why Rose Bay was identified as a “town centre” under the NSW Low and Mid-Rise Housing Policy.

A Village, Not a Centre

The plan aims to address the housing crisis by allowing more low- to mid-rise apartment buildings near existing infrastructure and public transport. Suburbs like Rose Bay, located less than 10 kilometres from Sydney’s CBD, have been flagged for such development.

However, residents and local leaders argue that Rose Bay does not meet the criteria of a town centre. Woollahra Mayor Sarah Swan stated that the suburb lacks a full-scale supermarket and adequate transportation links. Although the area has a Metro store and some grocers, she argued that it falls short of the planning standards that would justify its classification.

Wolloahra has lodged multiple Freedom of Information requests to understand how Rose Bay was chosen, but Ms Swan said the documents provided so far have been incomplete and vague.

Questions with Few Answers

At the forum, state MP for Vaucluse Kellie Sloane told the crowd she was also struggling to get clear answers from the Department of Planning. She noted that while officials appear to listen, there has been little sign of actual change or reconsideration.

Ms Swan said her own requests to meet with Housing Minister Paul Scully have been ignored. Council’s general manager did meet with him last year, but Swan said further efforts had gone unanswered.

Meanwhile, the Department of Planning maintains that Rose Bay is a suitable area for growth, citing its proximity to the city and existing services, including “three supermarkets, a Bunnings and good transport links.”

Property Boom or Community Bust?

The policy has already begun to shift the local property market. According to recent reports, some Rose Bay property owners have seen land values soar, with multi-lot sales potentially reaching hundreds of millions of dollars. One group of 16 homeowners on Wilberforce Avenue is reportedly considering a joint sale that could exceed $160 million.

While this has created financial opportunities for some, others fear it will make Rose Bay even less affordable. Forum attendees expressed concern that the increase in apartment stock would not benefit first-time buyers or downsizing retirees, but instead lead to inflated prices that push locals out.

Residents also raised questions about the impact on roads, schools, stormwater systems and tree cover, all of which they say are already stretched.

Locals argue they are not against growth, but want development that fits the scale and character of the area. The call from residents and officials is not for a halt to housing reform, but for greater transparency and planning tailored to community needs.



Council has lodged a second FOI request and says it will continue to pursue all avenues, including legal review, if answers aren’t forthcoming.

Published 20-June-2025