The New South Wales (NSW) government is considering the acquisition of historic defence sites, including the prominent Victoria Barracks in Sydney’s eastern suburbs. This move follows the federal government’s decision to sell approximately $3 billion worth of defence real estate, aimed at freeing up valuable land for housing in urban areas.
During the Sydney Summit on February 6, 2026, Planning and Public Spaces Minister Paul Scully confirmed that the Minns government is actively exploring options for these sites. He specifically mentioned that the state’s social and affordable housing agency, Homes NSW, is tasked with investigating potential uses for Victoria Barracks, which covers a significant 15-hectare area on Oxford Street near Moore Park.
While discussions about the future of these sites are ongoing, Scully emphasized that any development should be approached with caution. He ruled out aggressive construction, stating, “We should not be going in and bulldozing it and replacing it with huge apartment towers.” His comments reflect a commitment to preserving the historical and cultural significance of the site, which holds particular importance for veterans and the wider community.
When asked about community involvement in the planning process, Scully expressed optimism, stating, “I think they will.” He encouraged stakeholders to engage in thorough consultations with local communities, similar to previous efforts with surplus government assets.
Concerns about the federal government’s strategy were echoed by NSW Opposition Leader Kellie Sloane, who criticized the approach of transferring assets without a clear plan. Sloane, the Liberal MP for Vaucluse, argued for the preservation of military heritage assets, suggesting that any development should prioritize veterans and community needs. “We should try to hold on to some of those incredible military heritage assets and make sure they’re not diminished by development,” she said.
Sloane also pointed to successful examples from other major cities where military sites have been repurposed without compromising their historical value. She advocated for discreet housing solutions that respect the heritage of the area.
The federal government’s divestment plan includes several sites in Sydney, such as HMAS Penguin in Mosman, Lancer Barracks in Parramatta, and Spectacle Island on Sydney Harbour. This move has raised alarms among heritage groups and local councils, who fear that significant historical sites could be lost to private development.
Independent MP Allegra Spender from Wentworth stressed the need for a balanced approach to the future of Paddington Barracks. She expressed a preference for a mix of housing, heritage preservation, and community use, asserting that the site should remain a public asset rather than being exploited for short-term financial gain. “I’m open to social housing,” she stated, emphasizing the importance of maintaining the site’s historical connection to the military.
Spender highlighted the unique opportunity presented by the site’s location in her inner-city electorate, advocating for a plan that maximizes public benefit, including affordable housing and community spaces. “We should be looking at how to get the best value out of it,” she noted.
Veterans’ groups and heritage advocates have reacted cautiously to the proposal, warning that it could undermine the military’s presence in urban areas and affect defence recruitment. NSW Veterans Minister David Harris underscored the importance of consulting with veterans and their families, as the sites often hold deep personal significance and represent a vital link to Australia’s defence history. “The Minns Labor government always welcomes opportunities to deliver more well-located housing and open spaces, and we will engage constructively with the Commonwealth,” he affirmed.
As the NSW government navigates the complexities of redeveloping these historic sites, the emphasis remains on balancing community needs, historical preservation, and the provision of essential housing. The ongoing discussions will likely shape the future of Sydney’s urban landscape and its connection to the past.
