Sydney’s eastern suburbs skyline like we’ve never seen before could be on the way, with plans for thousands of new homes and buildings up to 34 storeys around Woollahra and Edgecliff.

The Minns Government has unveiled plans to rezone land around a new Woollahra Train station, paving the way for up to 9400 additional homes between Oxford Street and Darling Point Road.

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The proposed changes would allow significantly greater housing density around Woollahra and Edgecliff stations, with building heights ranging from three to 34 storeys.

The tallest buildings would be concentrated next to the two transport hubs.

Premier Chris Minns said the government had relied on Productivity Commission advice in identifying the area as one of the best locations in NSW for new housing.

“We have looked to the Productivity Commission who says this is the best site in the entire state to put new homes,” Minns said.

The plan would see buildings up to 34 storeys. Credit: 7NEWS

It includes a renovated Edgecliff centre. Credit: 7NEWS

The plans also include a new public plaza, upgraded open space and parks, as well as improved walking and cycling links.

The new Woollahra Train station is expected to open by 2029 - but the scale of the proposed development has sparked concern among some locals.

“I think it’s absolutely unnecessary,” one resident said.

“We grow with progress, and I’m all in favour of that, but it should be monitored.”

Others warned increased density could put further pressure on already congested roads.

“We already have so much traffic in the area so I can imagine it’s going to get 10 times worse,” one resident said.

Council pushes alternative

Woollahra Council has proposed a smaller alternative plan, which would deliver around 3600 new homes.

Woollahra Mayor Sarah Dixson said the council’s approach was backed by evidence and could deliver more housing alongside appropriate infrastructure.

“Our proposal is supported by appropriate infrastructure like schools and community facilities and outdoor spaces.” Dixson says.

Under the state government’s proposal, 3 per cent of the new housing would be allocated as affordable rental housing in perpetuity.

Only two other sites would include a 15 per cent affordable housing component.

NSW Premier Chris Minns says it is the best place for the development. Credit: 7NEWS

The median unit price in Woollahra is currently around $1.43 million, highlighting the area’s significant affordability challenge.

Minns said the proposal was not intended to solve Sydney’s broader affordable housing crisis.

“This is not a proposal to solve Sydney’s affordable housing problems,” he said.

“Part of the housing challenge that we face is we need dwellings across the board.”

Developers to help fund station upgrade

Developers will also be required to contribute towards the cost of upgrading the station.

The contribution is expected to be around $15,000 per new home or unit, helping fund a station upgrade estimated to cost between $150 million and $200 million.

Those costs come on top of existing taxes and levies paid by developers, with industry warning the additional charges will ultimately flow through to buyers.

Shadow Planning Minister Chris Rath said Sydney’s construction sector was already heavily taxed.

“The construction sector in Sydney is already one of the most highly taxed sectors in all of Australia,” Rath said.

The Woollahra proposal is part of a broader push by the NSW Government to increase housing density around major transport infrastructure.

It is part of the push for more infrastructure. Credit: 7NEWS

It will also include new cycling paths. Credit: 7NEWS

The state is also targeting sites across Sydney’s west.

In Parramatta, a new plan has been unveiled for 470 apartments and 500 student accommodation units.

Meanwhile, the cost of the Parramatta Metro station has blown out to about $880 million.

Transport Minister John Graham defended the investment.

“We were very upfront about these costs,” Graham said. “These are expensive projects, but they will change the city.”