Developer PAYCE has received planning approval for a major 351-apartment development at Melrose Park, delivering a significant boost to Sydney’s affordable rental housing supply.

Approved by the NSW Department of Planning, Housing and Infrastructure, the $136 million mixed-use project will include 197 affordable housing apartments and 154 co-living units at the intersection of Hope Street and Hughes Avenue.

The development is the first project approved through the Concurrent Rezoning pathway under the Housing Delivery Authority process.

Community housing provider Evolve Housing will own and manage all 197 affordable housing units, which will be funded for 25 years under the Australian Government’s Housing Australia Future Fund scheme.

Located approximately 100 metres from the future Parramatta Light Rail Stage 2 and the upcoming $800 million Melrose Park Town Centre, the project is expected to improve access to transport, retail and community infrastructure for residents.

PAYCE Chairman Brian Boyd described the project as a major contribution to affordable housing delivery in a high-demand growth area, while Evolve Housing CEO Lyall Gorman said the homes would help address the shortage of affordable housing in well-connected locations close to employment, education and essential services.

The project is expected to create 216 construction jobs and 26 ongoing operational roles, with completion anticipated in late 2028.