Woolworths Group’s property division has received the green light for a large-scale redevelopment of its Neutral Bay site after years of planning disputes with North Sydney Council and intervention from the NSW Government’s accelerated housing pathway.

The $191 million proposal by Fabcot will see the existing Woolworths supermarket at Rangers Road and a neighbouring commercial building on Yeo Street demolished to make way for a substantially larger mixed-use precinct.

Designed by Koichi Takada Architects, the approved development will feature two towers reaching up to 12 storeys alongside retail space, medical facilities, public areas and almost 100 apartments. The project will also include a supermarket located below ground level, freeing up street frontage for shops, restaurants and pedestrian spaces.

Approval was granted shortly after the site received rezoning through the state’s Housing Delivery Authority process, which increased allowable building heights across the 4,207-square-metre Lower North Shore property.

Woolworths Group national general manager for mixed-use development Pierre Abrahamse described the outcome as a significant milestone, noting the project represented the first instance in the North Sydney local government area where Housing Delivery Authority rezoning and State Significant Development approval had been secured concurrently.

The approval concludes a six-year planning process that ultimately produced a larger scheme than earlier versions considered through council channels. Previous plans had proposed buildings between six and eight storeys with around 62 apartments and a stronger emphasis on non-residential space.

Under the revised planning controls introduced through the state process, maximum building heights increased from between 26 and 31 metres to up to 44 metres in some sections of the site. Requirements for commercial floor-space ratios were also reduced.

The final proposal includes 97 apartments, comprising 87 market-rate dwellings and 10 affordable housing units that will remain designated affordable accommodation for at least 15 years. Apartments will range from one-bedroom layouts through to larger four-bedroom homes.

Commercial space will occupy more than 6,500 square metres across the development, including 10 retail tenancies at ground level and a medical centre spanning several floors. Plans also feature a 1,100-square-metre public plaza designed to improve pedestrian connections between Rangers Road, Yeo Street and Military Lane.

Fabcot initially approached North Sydney Council in 2020 regarding redevelopment opportunities within the Military Road corridor and Neutral Bay town centre. The council rejected an initial planning proposal in 2022 and also opposed a revised submission the following year, prompting the developer to seek a rezoning review through the state government.

Despite continued opposition from the council and concerns raised during public consultation, the Department of Planning, Housing and Infrastructure ultimately backed the project. Of the 46 public submissions received during exhibition, 30 objected to the proposal.

The approved scheme includes a 1100sq m public plaza linking Rangers Road, Yeo Street and Military Lane.

Critics raised issues including building height, overshadowing, traffic congestion, parking, infrastructure demands and the scale of the development along Yeo Street. Some residents also questioned the amount of affordable housing and the impact on the surrounding public domain.

Planning authorities concluded the site was appropriate for denser mixed-use redevelopment given its location within Neutral Bay’s established commercial centre. The department also pointed to the presence of nearby buildings ranging from nine to 14 storeys within close proximity of the site.

Changes were made to the design during assessment, including alterations along Military Lane where a previously blank wall was replaced with a semi-open connection intended to improve pedestrian movement and visual access between the lane and the central plaza.

The department also accepted a partially covered pedestrian link instead of the open-air break sought by the council, determining the design still provided sufficient light, openness and weather protection.

Infrastructure agencies including Sydney Water and Ausgrid advised the development could be supported by existing services, while planners found the traffic impacts acceptable.

Government assessment documents estimate the project will create 263 construction jobs and 143 ongoing operational roles once complete. The development is also expected to contribute $1.12 million towards housing and productivity-related funding measures.

Construction is currently expected to begin in 2026, with completion targeted for 2029, subject to further approvals covering groundwater conditions, landscaping, traffic management, wind impacts and site stability.