11 June 2026
Central Element’s proposed 163-apartment redevelopment at Lavender Bay has gone on public exhibition, with residents raising concerns about traffic, parking, overshadowing and the project’s fit with the surrounding conservation area.
The Sydney developer is seeking approval for a dual-tower residential project at 64-66 Lavender Street and 3-7 Middlemiss Street, a 2305 square metre site currently occupied by 32 ageing residential apartments. The proposal, designed by SJB, would deliver towers of 23 and 32 storeys, including seven affordable housing apartments.
The project is being assessed as a State Significant Development and forms part of the NSW government’s Housing Delivery Authority program. Central Element has also lodged a concurrent rezoning proposal seeking a substantial increase from the current 12 metre height limit, which would otherwise allow a building of about four storeys.
The developer’s planning material argues the site is well placed for additional housing because of its proximity to Milsons Point transport infrastructure and its location between the high-density towers of Milsons Point and the lower-scale Lavender Bay area.
SJB said the design had evolved through discussions with the Department of Planning, Housing and Infrastructure and independent design review processes. It said a two-tower arrangement was adopted instead of a single larger tower to reduce perceived bulk, preserve view corridors and create greater permeability at ground level.
“The proposal for 3–7 Middlemiss Street and 64–66 Lavender Street is driven by a clear ambition to complete the Middlemiss Peninsula, delivering the final piece of a carefully evolving urban precinct,” SJB said in its design report.
The architect described the development as a “unifying element” between Lavender Bay and the North Sydney CBD, and said it would contribute to the skyline, public realm and future housing supply.
The plans include five basement levels with 174 car spaces, 181 bicycle spaces and 10 motorcycle spaces. The project also includes more than 1500 square metres of communal open space, almost 400 square metres of indoor communal facilities, landscaped podium areas, swimming pool facilities, barbecue areas, resident retreat spaces, a public plaza and a pocket park.
However, residents say the scale of the proposal needs to be tested carefully against local traffic, heritage and amenity impacts. Residents Opposing Lavender Bay Overdevelopment said the Environmental Impact Statement identifies Lavender Street as the entry and exit point for the basement car park, adding traffic to a road already affected by congestion around the roundabout connecting the Warringah Freeway, Alfred Street, Middlemiss Street and Lavender Street.
The group said parking was also a concern, with the proposal providing four visitor car spaces and the area recently losing 16 street parking spaces due to Sydney Harbour Cycleway works.
Local resident Clare Loewenthal said residents were concerned that the transport assessment understated likely traffic impacts.
“Our community uses Lavender Street every day, and we know first-hand the traffic is already gridlocked at peak times,” she said. “It is hard to fathom the proponent’s claim in its Transport Impact Assessment that ‘The projected level of traffic generation arising from the proposal is considered to be negligible.’ How can you introduce that many additional cars into an already congested road network and not make it worse?”
Residents have also raised questions about proposed large-vehicle access via Arthur Lane, with one-way Middlemiss Street used as an exit point.
“Arthur Lane is a dilapidated laneway that currently provides access to the garages of terrace houses on Arthur Street and Lavender Street,” Loewenthal said. “It is barely wide enough for two cars to pass, let alone large vehicles.”
She said residents were also concerned about plans showing pedestrians using Arthur Lane as part of a public site link, arguing the lane’s existing function was garage access rather than pedestrian movement.
The group has also pointed to potential safety issues where vehicles would cross the cycleway in Middlemiss Street, and has raised concerns about overshadowing, privacy, wind, noise and the relationship between the proposed towers and the adjacent Lavender Bay Conservation Area.
Another issue for residents is the affordable housing balance. The site currently contains 32 older apartments, while the new scheme would include seven affordable housing units managed by a community housing provider. Opponents say the replacement outcome should be considered carefully, particularly given potential impacts on nearby social housing blocks.
Central Element has been active in Sydney development since 2010. Its recent projects include Ethos Chatswood and the Ballamac House redevelopment at Coogee, while other projects are planned at Hyde Park, Bondi and Neutral Bay.
The Lavender Bay proposal is now on public exhibition.