"Medium density alone isn’t a silver bullet": How Australia’s housing debate found itself in Castlecrag Shopping Village

The fight over an eleven-story apartment proposal in Castlecrag has come to reflect the state's larger housing affordability crisis, pitting calls for more density against concerns of rushed overdevelopment. At the centre is independent Bradfield MP Nicolette Boele, who has been branded a "NIMBY" by critics, a label she rejects as both unfair and unhelpful.

“I strongly support affordable housing”, Boele told the Lorikeet. “The single biggest lever to making homes more affordable is to increase supply.”

Supporting medium density housing — such as that proposed in Castlecrag — was a key point of Boele’s affordable housing policy platform in the 2025 election. Boele said that while the Castlecrag proposal included medium-density elements, that alone “isn’t a silver bullet.” 

“Housing supply only achieves its goal when paired with the local infrastructure and meaningful community engagement needed to ensure these homes are liveable,” she said.

The residents of Castlecrag had previously given consultation on an earlier development on the same location, where both local organisations and Willoughby council gave approval for a five-story development. When the site was onsold, the new developer sought it be reclassified as a State Significant Development. 

While local councils may give feedback on a State Significant Development proposal, its approval is not necessary. 

Boele argued that this process overrides local inputs. 

“Residents were consulted,” she said. “They flagged issues with traffic, school capacity, and public space. The final design was improved to reflect that input.”

“We know that increasing housing supply is key to making housing more affordable. We should also know that the housing crisis won’t be solved by pointing fingers at those trying to deliver new housing that actually works for communities.”

According to Sydney YIMBY (Yes-In-My-Back-Yard) chair Justin Simon, however, concentration of housing in large developments like that proposed in Castlecrag is necessary.

"Ultimately, where entire areas like Castlecrag and Haberfield are subject to heritage conservation, growth is going to be concentrated in a few tall buildings in a small area. This means the bulk of the suburb remains unchanged,” Simon told the Lorikeet.

"Opting out of dwelling growth entirely should not be an option for any suburb, as it creates a bunch of social dysfunction: whole suburbs without first home buyers, empty primary schools, and nowhere for older residents to downsize to”.

While Boele argued the state government should not override residents at the local council level, Simon argues the opposite, stating that the people these developments would benefit are not represented in these conversations. 

"In most cases, the people who will live in the new apartments don't live in the area yet. It's legitimate that their interests are represented by the state government, and we encourage them to step in where councils aren't doing their jobs."

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