The former Frenchs Forest High School site, earmarked as the suburb’s new town centre, has been identified as a key location for affordable essential worker housing. But questions remain over whether the government is pushing hard enough on options for the site that will enable key workers such as bus drivers, teachers and nurses, to live in the region.
The former high school site was declared as surplus land following a NSW Government land audit and will become a mixed-use town centre with at least 1,000 new homes, up to 12 storey towers (similar height as the neighbouring Northern Beaches Hospital), and commercial and public green space.
Property and Development NSW are running a Registration of Interest (ROI) for the former high school site at 135 Frenchs Forest Road West, Frenchs Forest, where in the Government has offered four options for would-be developers and service operators. Each applicant needs to register how they will provide a mixed-use town centre with commercial, retail, education and community facilities; build at least 1,000 diverse dwellings with a minimum 15 per cent affordable housing in perpetuity (up to 100 per cent considered); and deliver 1.5ha of open space.
Of the four options the State Government has offered developers, only two provide financial incentives for 100 per cent affordable homes, and both are aimed at community housing providers rather than private developers.
We asked Wakehurst MP Michael Regan if this went far enough, given he has advocated for the site to be 100 per cent affordable essential housing at the site.
He described the ROI as a “positive first step”, adding that “getting the NSW Government to this point has felt like a tugboat shifting a massive ship.”
But Regan says it’s not just affordable housing that’s required, but also options that are suitable for essential workers who don’t qualify for affordable housing.
Not all essential workers are eligible for affordable housing
Affordable housing provides below-market rent for low- to moderate-income earners. Many of our essential workers earn above this threshold and therefore are ineligible for ‘affordable housing’.
“[Essential workers] do not qualify for social and affordable housing because their wages are just a fraction too high above the threshold,” Regan told us.
The Legislative Assembly Select Committee on Essential Worker Housing released a report in June 2025 with 20 recommendations, namely, to include essential workers within the groups eligible for affordable housing and to prioritise identified surplus land for essential worker housing. Frenchs Forest town centre could be the first step towards making those recommendations a reality.
“The redevelopment of the old Forest High School is a once-in-a-generation opportunity to shift the dial on essential worker accommodation on the Beaches,” Regan said.
“When nurses, aged care staff, teachers, police and bus drivers can no longer afford to live near where they work, local services suffer and we see the impacts directly through cancelled bus routes, critical worker shortages and pressure on essential care.
“This will be a game changer for our community if we get this right.”
What would getting it right look like ?
For the remaining 850 homes, Regan would like to see housing providers work with developers to come up with a build-to-rent or shared-equity scheme. These programs are often used alongside unions to provide their workers with affordable housing where they work. For example, 30 per cent of the worker’s wage would go toward a five or 10-year lease provided they work locally as an essential worker.
Within this idea, instead of selling the land, last valued at $121 million, NSW government would lease the land for 50 years for free, retaining the increasing value of the land over time and saving developers the cost of owning the land.
Regan confirmed he’s seen modelling from different third-party housing providers saying they believe it’s possible to have the site 100 per cent as affordable and essential worker housing.
“The last thing we need is more $5 million apartments,” Regan added.
The details
JLL, a leading global commercial real estate services and investment management company, on behalf of Property and Development NSW, launched a Registration of Interest campaign this month (which closes on Tuesday, 30 June 2026).
“The former Forest High School site will be transformed into a revitalised town centre… most importantly, at least 150 of [the 1,000 new homes] will be dedicated to affordable housing for key workers including frontline health staff working next door at Northern Beaches hospital,” Minister for Lands and Property Steve Kamper said.
“We are laying down the challenge to housing providers: the more affordable housing you can deliver, the stronger your proposal will be.”
Option 1: Ground Lease – 15 per cent Affordable Housing Yield
The government keeps ownership of the land, but leases it to the developer, at a cost the developer nominates, for a maximum period of 99 years (50 years with a 49-year option to renew).
The developer builds everything from homes to open space to commercial, and 15 per cent of the homes must be affordable housing for the length of the lease. Keeping in mind that affordable housing is not necessarily for essential workers, as they may earn above the threshold.
At the end of the lease, the government owns everything.
Option 2: Ground Lease – Maximum Affordable Housing Yield (Up to 100 per cent)
Almost everything is the same as option 1, except the developer provides as much affordable housing as is financially feasible in return for a nominal lease premium (essentially free) for the land.
This option would suit a community housing provider or developer.
Option 3: Contract for Sale – Freehold tenure – 15 per cent Affordable Housing Yield
The government sells the land to the developer outright, and the developer builds the town centre infrastructure and whatever housing they want (pending development application approvals) but have to include 15 per cent as affordable housing in perpetuity. Again, essential workers might miss out on this because of falling just outside the salary threshold.
Option 4: Project Delivery Agreement – Maximum Affordable Housing Yield (Up to 100 per cent)
The government neither sells the land nor leases it. The developer acts as a delivery partner, building everything on the government’s behalf. Once the homes receive their occupation certificate, the ownership transfers to the home buyer or community housing provider. This option is catered to community housing providers or delivery-fee models rather than traditional developers.
So does the ROI do what we need it to?
“The announcement of the ROI may seem procedural, but it is very significant because it shows a willingness to consider proposals that can deliver more than the mandated minimum 15 per cent Affordable Housing for the site,” Regan said.
“This includes the potential for a ground lease model, where the government retains ownership, which has never been done before in NSW.
“The NSW Government has thrown open the doors to the market and said, ‘tell us what is possible’. Once they have this information, they can make an informed decision.”
That informed decision, or at the least the next stage of talks with those who have registered, is expected around August 2026.
Catch up on Frenchs Forest development news:
Four years on from the Frenchs Forest Strategy… where are all the apartments?
Council bids for major affordable housing changes; denounces loss of planning control
