NSW Opposition Proposes Transforming Long Bay Prison into 12,000 Affordable Homes Amidst Planning Challenges
October 27, 2026
The NSW Opposition, led by Kellie Sloane, proposes shutting Long Bay prison and converting the site into about 12,000 homes, creating a Long Bay Delivery Authority to relocate inmates and staff to other facilities.
The Coalition envisions closing Long Bay Correctional Facility on its 50-hectare site and building over 12,000 homes, with roughly a third designated as affordable or social housing, while suggesting expansion of other prisons to offset bed loss.
The Liberal Party pledges to establish a Long Bay Delivery Authority and close Long Bay within about 100 days of a Coalition victory, repurposing the site and coordinating inmate transfers and infrastructure planning.
Planning Minister Paul Scully dismisses the Long Bay plan as fantasy, citing density and inadequate transport as major planning obstacles.
The story sits within a broader political context of Labour’s housing push and criticism of NIMBY opposition, alongside local planning officials’ and residents’ concerns about location and impact.
Transport infrastructure remains a central concern for Long Bay, with historical references to Infrastructure NSW’s 2014 light rail studies and the 2020 South East Sydney Transport Strategy’s suggested metro, dependent on broader development financing.
The NSW election is shaping up as a battleground over housing affordability, with competing visions for Sydney’s growth focusing on the eastern suburbs.
Proponents argue the aim is affordable options for young people, not luxury housing, addressing critiques that plans often produce expensive apartments.
The plan stresses avoiding a luxury-only suburb, emphasizing affordability for young people rather than premium units.
Planning reform continues with rezoning near transport hubs and advocacy for faster approvals under a YIMBY approach.
Labor opposes the sale of the site, arguing the government is behind targets and pushing broader rezoning to deliver more homes.
Housing Now! supporting the Long Bay plan notes the need for homes in appealing locations and density near potential transit nodes.
Summary based on 4 sources
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Sources

The Sydney Morning Herald • Oct 27, 2026
‘Not another suburb for luxury housing’: Liberals to unveil Long Bay housing plan
The Sydney Morning Herald • Oct 28, 2026
‘A fantasy’: Labor attacks Coalition’s 12,000-home Long Bay plan
The Sydney Morning Herald • Oct 28, 2026
Opposition’s Long Bay idea not the negative gear portrayed by Labor
Ticker • Oct 28, 2026
Housing plans clash ahead of NSW election