The shift from a major office-led tech precinct to student-focused “co-living” next to Sydney’s Central Station shows how a $3 billion plan to attract next-generation technology companies is now pivoting toward housing in an effort to stay viable in a weak office leasing market that could change the character of the Tech Central area.
The Central Place Sydney project began in 2022 as a joint venture between two major property groups, pitched as a flagship home for local technology firms in the emerging Tech Central district beside Central Station. It was meant to build on the momentum of the area’s transformation and respond to demand for cutting-edge office space close to transport, universities and existing innovation hubs.
Under the original scheme, the partners planned more than 130,000 square metres of premium-grade office space, aiming to create the largest top-tier workplace in the precinct and a key anchor for Sydney’s tech ambitions. However, large corporate tenants did not commit in sufficient numbers and with leasing conditions still challenging in secondary CBD-fringe locations, the commercial case for a new office tower weakened. By contrast, a separate $1.8 billion 40‑storey tower in the precinct led by a software company and the same property group continues rising, even as hybrid and remote work force the landlord to seek more smaller tenants to fill future vacancies.
The broader Tech Central strategy has already been revised by the NSW government, which acknowledged that the initial vision fell short and that the district needs more momentum to become a globally recognised innovation hub. The updated approach now leans toward a mix of uses and it looks like more housing, including affordable options, will be folded into the area alongside space for innovation-focused businesses, suggesting a more blended live–work environment rather than a purely office-based cluster.
In this context, the part of the site controlled by one of the developers is now earmarked for student accommodation instead of new offices. Two existing eight-storey office blocks at Henry Deane Plaza and the Gateway Building, which have been vacant since 2022, are set to be converted into co-living style housing with 554 rooms and about 692 beds, spread across studios, twin studios and shared cluster rooms. Planning documents indicate that the earlier office joint venture struggled to secure enough pre-committed tenants and the soft office market rendered the original plan unviable. Turning the empty buildings into student space appears to offer a more reliable use, adding much-needed beds close to nearby universities and timing completion to align with the adjacent tech tower’s opening.
The downgrade of the wider precinct in 2024, when the state government dropped a costly over‑station development that was meant to be the centrepiece of a broader Central redevelopment, also undercut the scale of the original vision. Another mixed-use complex planned by a private developer combining a hotel and offices still faces the hurdle of securing early tenant commitments in the same challenging environment. While the government’s refreshed strategy seems to aim for a balance of innovation, housing and commercial uses, it also underlines the uncertainty facing large office projects as work patterns evolve and investors look for more resilient sectors like student accommodation.
