The O'Farrell government's much-trumpeted plan to provide 30,000 homes near some of Sydney's main transport developments has been dealt a blow, with community and council opposition forcing delays in several areas.
Planning has been put on hold in three of eight ''urban activation precincts'', introduced in March as part of the government's ''Super Saturday'' package to address housing affordability. And in the view of one council, the plan for a special precinct has been suspended indefinitely.
Plans for high-rise redevelopment near transport hubs in Randwick, Anzac Parade and Mascot have been delayed as the government weighs its response to a widening political, community and council backlash.
The delays in the precinct plans and the government's failure last month to push through planning reforms have prompted an outcry from the development industry, which claims much-needed urban renewal could be undermined as a result.
Urban Taskforce chief executive Chris Johnson said: ''A lot of things seem to be now on hold, in limbo land, while the government tries to work out how to move forward.''
The deputy director-general of the Department of Planning and Infrastructure, Richard Pearson, wrote to Randwick City Council this month to advise of delays in two precincts - one covering Anzac Parade and the other areas of Kingsford, Kensington and Randwick.
He said more work was needed and a delay of at least three months before the plans went on public exhibition. Both proposals had been met with fierce opposition from the community and the council.
Randwick mayor Scott Nash had argued that the department had failed to consult the community, explain why the proposals were necessary or detail how the infrastructure could sustain the increase in housing.
A departmental spokesman said the delay would allow ''a comprehensive infrastructure strategy and new community engagement strategy to be prepared''.
There is confusion about the fate of another proposal for Mascot. The department says it is on hold and awaiting more information about the impact of the $11.5 billion WestConnex motorway.
But according to Botany Bay Council, the department is no longer pursuing the precinct proposal after assessing existing plans for what is already a high-density area.
A spokeswoman for Botany mayor Ben Keneally said there were no such plans for the council area. Parts of North Ryde, Macquarie Park, Epping, Wentworth Point and Lidcombe have also been earmarked for the zoning and development control changes.
Hornsby council said the Epping precinct was ''progressing smoothly''.
While the delays have been welcomed by communities fearing overdevelopment, Mr Johnson said they were an ''enormous problem'' as Sydney underwent a cultural shift towards apartment living.
Stephen Albin from the Urban Development Institute of Australia said the combined delays to the planning bill and the urban proposals would knock confidence in the industry.
But Bill Randolph from the University of NSW City Futures Research Centre said the government needed to involve the community in its urban renewal plans and put the developers ''back in their box'' if their proposals did not match the vision for an area.
''You can do density well, or you can do it badly,'' Professor Randolph said. ''We simply don't have the trust that we need between the community and development process to deliver outcomes that people will feel comfortable with.''
When it announced the urban activation plans, Premier Barry O'Farrell said: "We understand people are concerned about rising housing costs in Sydney and the delivery of these tens of thousands of new homes will assist in improving housing affordability.''
A spokeswoman for Planning Minister Brad Hazzard said: ''In response to community consultation the NSW government has put on hold the Randwick and Anzac Parade activation precincts for three months, to allow a comprehensive infrastructure strategy to be prepared and give time for discussions with council.''
