Sydney prison back on the table for housing – will the gov reconsider?

After backing the NSW government’s plan to rezone Woollahra, the opposition is pushing its proposal to transform the Long Bay Correctional Centre into a 12,000-home precinct.  

The NSW opposition has announced it intends to repurpose the Long Bay Correctional Centre site into housing, if elected to government.  

Located 14km from Sydney’s CBD, the 32-hectare parcel has long been touted by developers as a potential housing location. 

The NSW Coalition describes it is a “once-in-a-generation opportunity” to do so and predicts it could accommodate up to 12,000 new homes – with 30% committed to social and affordable housing.  

Under the plan, the prison would remain in operation until a new facility is built outside the city. 

In June 2025, premier Chris Minns rejected a similar proposal from former minister David Elliot, who had suggested closing the prison and its adjoining hospital to make way for housing.  

At the time, Mr Minns cited concerns about transport accessibility in the area. 

As part of the proposed Long Bay masterplan, the NSW Coalition has pledged to deliver improved transport connections, including new public transport links and upgraded roads, along with new childcare centres, healthcare services and green space. 

The proposal is hot on the heels of the government’s Woollahra rezoning move, which seeks to complete and open the abandoned train station site, potentially enabling up to 10,000 homes.  

The opposition supported that plan, though opposition leader Mark Speakman called it a “no ‘Plan B’ or even a plan at all” in terms of delivery. 

But industry insiders have stressed that the state’s housing issues require a bipartisan approach, and urged the government to look at the opposition’s plan for the correctional facility. 

The Urban Development Institute of Australia (UDIA NSW) welcomed the proposal with CEO Stuart Ayres calling it an “innovative and considered move that could contribute meaningfully to Sydney’s housing supply”.  

“Despite recent improvements in the ABS housing approvals data, NSW is currently falling behind the Housing Accord targets, and it is clear that more homes, of all types and in all locations, are needed,” Mr Ayres said.  

“This would be a once-in-a-generation opportunity to transform an ageing, centrally located facility into a vibrant, connected neighbourhood.”  

Urban Taskforce acting CEO Stephen Fenn also described the plan as a “logical move”, citing the south-east’s existing employment, education and health infrastructure as strong foundations for the proposal. 

He also emphasised the importance of matching housing plans with transport investment.  

“The Long Bay proposal raises the need for a transport solution to match the size and scope of housing along the east coast. The extension of the Western Metro from Wynyard through to Malabar was a logical extension and would be a fillip for the long-term plans for the region,” Mr Fenn said.  

“A Metro to Malabar could also in time be extended through to Sutherland Shire in Sydney’s south – city-shaping infrastructure that would be a transformative project in terms of well-connected housing and jobs.”  

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