Neighbours at war as wrecking ball closes in on one of Sydney's roughest public housing estates: 'Not functional communities'

Published: 22:08, 13 July 2026 | Updated: 22:27, 13 July 2026 One of Australia's largest public housing estates has become the centre of a bitter battle, with some residents fighting to stop the bulldozers while others say the ageing complex cannot be demolished quickly enough. Plans to redevelop the 750-unit block on Cope and McEvoy streets in Waterloo, in Sydney's inner suburbs, have been on the cards for more than a decade, with successive Coalition and Labor governments arguing for the need to rebuild. The estate occupies some of Sydney's most valuable government-owned land, just 4km from the CBD, in a rapidly gentrifying pocket of Waterloo and Redfern where soaring property prices have intensified pressure for redevelopment. While home to a tight-knit community, the Waterloo estates have also gained notoriety over the years for drug-related crime, with some of Sydney's most hardened offenders living within the precinct.   'Those old style estates with thousands and thousands of public homes in the one place, they're not functional communities,' NSW housing minister Rose Jackson said. As part of the area's massive urban renewal project, the ageing estate will be transformed into 3,300 high-rise private, social and affordable homes, with the first block of around 150 units slated for demolition by the end of June. Of the 3,300 new homes, half will be sold on the private market, while 30 per cent will be set aside for social housing and 20 per cent for affordable housing. Jackson said having a mix of private, social and affordable housing would make Waterloo a better place to live.  While home to a tight-knit community, the Waterloo estates have also gained notoriety over the years for drug-related crime, with some of Sydney's most hardened offenders living within the precinct Megan, who moved in a few months ago, said the demolition of the dilapidated block couldn't come soon enough Rachel Evans, from Action for Public Housing, has been camping outside the estate in a bid to stop its demolition and says it is a disgrace that the complex is being torn down and replaced  The current Waterloo South estate will be bulldozed to make way for 3,300 new homes. Half will be sold on the private market, while 30 per cent will be set aside for social housing and 20 per cent for affordable housing However, the multi-billion-dollar redevelopment was thrown into chaos last month when more than 200 activists descended on the estate and established a protest camp to stop the bulldozers. For almost three weeks, campaigners occupied the Waterloo South site, transforming it into a makeshift 'tent embassy' complete with campfires, communal meal services and nightly patrols as they vowed to stand in the way of the bulldozers. The dramatic standoff reached a climax in June when Riot Squad officers and mounted police moved in, forcing protesters from the encampment as authorities pressed ahead with plans to knock down the first buildings. Rachel Evans, from Action for Public Housing, said she was disgusted and angered that taxpayer funds were being spent demolishing homes and moving out tenants at the same time as a housing crisis. 'The demolition teams have now fenced up almost the entire radius of the stage one demolition site. They're cutting off the electricity wires, and the process is they'll go in and smash the kitchens and bathrooms, so they are unliveable,' Ms Evans said. 'We know there are people who are homeless, or are precariously housed, who are attempting to live in these places because there's nowhere left to go. So this is a travesty. It's a social crime.' Ms Evans, who has been camping near the entrance to the unit block since last month, said around five tenants were refusing to leave despite being offered relocation to other public housing dwellings. 'There's a right of return, allegedly, for everyone who has moved on into the new private social affordable premises, but research shows that very few come back because it's heartbreaking,' the disability support worker said. For almost three weeks, campaigners occupied the Waterloo South site, transforming it into a makeshift 'tent embassy' complete with campfires, communal meal services and nightly patrols as they vowed to stand in the way of the bulldozers  Some of the displaced tenants were relocated to units in the new social housing building at Waterloo Metro Quarter, which are far more modern than their former homes, featuring high-end kitchens and sweeping views across Sydney (pictured)  'You've grown up here, you've lived your life here, and then your community is displaced, and it's nothing that you can relate to. It's a very heartbreaking, stressful experience of being forcibly evicted.' For Karyn Brown, who has lived in the estate for 27 years, she no longer feels the 'security and dignity' she experienced when she was first approved for public housing. 'It feels like a forever home. You get your key to your flat and then you're like, I don't have to move again, at last,' she said. 'And now it's been taken away.' She also dismissed concerns from the NSW government that the units were not fit for purpose. 'They said that 10 years ago and we're still living in them. They're very solid, double-brick and meant to last 100 years at least. There's no cracks in it. It works really well and stays cool in summer, and warms up quickly in winter,' she said. However, another tenant the Daily Mail spoke to said she could not wait to be relocated from the area after suffering a 'bad experience' there. Megan, who has been living in the estate for only a few months, said her home was unliveable because it was covered in mites and that she was happy it would eventually be demolished. 'They've given us 12 months until they'll be knocking it down,' she said. Waterloo South tenant Karyn Brown was sad to leave the public housing complex and once considered it her forever home Armed police have attended the campout several times as the demolition crews' attempts to begin work are blocked by the protesters NSW housing minister Rose Jackson has been slated by some tenants after she said the area wasn't a 'functional community' The Daily Mail understands the entire demolition will occur in stages over approximately nine months, with works initially commencing on buildings that are already vacant. 'The homes in Waterloo are past their use-by date and are in desperate need of renewing,' Jackson said. 'Residents are being supported to move to another social home which meets their individual housing needs. We are aiming to keep all residents within the local community, unless it is their preference to move elsewhere,' she said.