NSW Housing Minister Defends Redevelopment of Waterloo Public Housing

NSW Housing Minister Rose Jackson says communities like public housing in Waterloo in inner Sydney are not "functional communities" as workers began fencing off the first lot of homes to be demolished and redeveloped.

A block of around 150 homes in Waterloo's south will be demolished by the end of June to make way for a mix of private, affordable and social housing as part of a wider redevelopment of the Waterloo estate.

In response to a question about why a mix of housing was preferred to purely public housing at Waterloo, Ms Jackson told 702 ABC Sydney presenter Craig Reucassel a mixed-tenure model was a more functional place for the city.

"The reality is, Craig, those old style estates with thousands and thousands of public homes in the one place, they're not functional communities," Ms Jackson said.

Current tenants were relocated to other public housing, including at least 70 into the newly-built homes next to the Waterloo Sydney Metro station, but activists say at least 10 people were still living on site on Monday.

Workers began putting fences up around a block of 150 homes on Monday, the first block to be demolished as part of the construction of thousands of public and private homes by developer Stockland.

One resident, Julie, said she only heard about the demolition work when she woke up on Monday morning and saw workers putting fences up.

She said she was all packed to move but the plan to relocate her had been delayed.

"Waterloo is my home, I want to stay here," Julie said.

The housing minister said her understanding was the remaining people were not tenants but would engage with them about relocation.

"Clearly we'll work with them and talk to them and be respectful of them and engage with them. We do want to get on with this," Ms Jackson said.

"It's not about demolishing homes, it's about building homes.

"There are thousands of people waiting for new homes who would be so keen to grab one of these new apartments in Waterloo when they're built over the next few years."

The NSW government plans to build 3,300 homes to replace the current 750 public housing homes at Waterloo.

Among the 3,300, 50 per cent will be private housing, 30 per cent social housing and 20 per cent would be affordable housing.

The minister was unable to confirm how much of the 20 per cent of affordable housing would be in perpetuity, saying it was yet to be finalised as part of the planning process.

Waterloo public housing resident and housing activist Karyn Brown criticised the minister's comments and said she wanted to see the current homes refurbished and for more homes to be added by infill.

"It should remain an affordable suburb because we need people close to the city who do the low paid jobs … [such as] the people who pour your beers, serve your meals and clean up after you and the hospital orderlies."

NSW Greens housing and homelessness spokesperson Jenny Leong said the government should be building 100 per cent public housing on public land.

"The solution is not to deliver more private housing, the solution is for the state government to massively increase the amount of public housing," she said.

"This is a prime site for doing exactly that."

A group of a dozen housing activists have set up camp at the Waterloo housing site indicating they would protest against the demolition of public housing.

NSW Police came to the scene after activists disrupted early efforts to fence off a parking lot that backed on to homes on John Street.

A police spokesperson said no arrests were made.