Toohey Millers wins approval for Runway Residences on Paddington's Oxford Street

Sydney apartment developer Toohey Miller has secured development approval for its latest eastern suburbs project, an $86 million mixed-use apartment building on Paddington's historic Oxford Street that will be known as Runway Residences.

The name is a nod to Oxford Street's longstanding association with fashion, retail and design, with the development occupying a prominent position opposite Victoria Barracks, along one of Sydney's best-known shopping strips.

It is an expansion of a growing portfolio for Toohey Miller, led by Nick Couloumbis. They currently have projects in Elizabeth Bay and Mosman, as well as an upcoming tower in Pyrmont.

The Paddington approval clears the way for 44 apartments across an eight-storey building designed by Smart Design Studio, comprising 33 market residences and 11 affordable apartments, alongside two ground-floor retail tenancies.

The project was first covered by Apartments.com.au just under 12 months ago when Toohey Miller lodged plans to redevelop the 2,023 sqm site at 142-160 Oxford Street and 6 Shadforth Street, replacing an ageing 1960s apartment building containing 27 studios, several terraces and an older dwelling on Shadforth Street.

The approved development has progressed through the NSW Government's affordable housing SSDA pathway, introduced to encourage larger residential projects incorporating affordable housing in well-connected locations.

The pathway allows qualifying Greater Sydney developments with a capital investment exceeding $75 million and a minimum affordable housing component of 10 per cent to be assessed by the NSW Government.

The site's location was central to the Department of Planning, Housing and Infrastructure's decision to support the project.

Sitting within 400 metres walking distance of the designated Darlinghurst and Paddington town centre, the land falls within the NSW Government's new low and mid-rise housing framework, which encourages greater residential density close to established shopping precincts, services and public transport.

In its assessment, the Department concluded the development would contribute to the government's housing supply objectives while making more efficient use of an accessible inner-city site.

It found the proposed density and building scale were compatible with the area's intended future character under the new planning controls, particularly given the development's active retail frontage to Oxford Street and the inclusion of affordable housing.

The Department also concluded the building would not adversely affect the heritage significance of the neighbouring Victoria Barracks or Paddington Heritage Conservation Area, noting the architectural treatment, sandstone finishes and upper-level setbacks were appropriate to the surrounding streetscape.

The assessment described the proposal as consistent with the government's priorities for delivering well-located housing, with the additional residences, affordable housing contribution and street-level retail among the key reasons supporting approval. It will also inject over $85 million into the economy and create 100 construction jobs and 133 operational jobs.

The 11 affordable apartments will be managed by registered community housing provider EchoRealty NSW & ACT for at least 15 years.

The approved scheme incorporates a five-storey streetwall along Oxford Street, with upper levels stepping back to reduce the building's perceived scale. Landscaping, privacy planters and the retention of established London Plane trees along Oxford Street will help integrate the building into its surroundings.

The apartment mix comprises six one-bedroom, 15 two-bedroom and 23 three-bedroom residences, with four basement levels and communal landscaped open space to the north of the building. There will be a rooftop pool with views across the Sydney skyline to the Harbour Bridge.

Runway Residences occupies a particularly well-connected section of Paddington, where Oxford Street's retail and hospitality offering is complemented by the boutiques, galleries and cafes of William Street and the surrounding village streets.

Paddington Reservoir Gardens, the UNSW Art & Design campus and Victoria Barracks are all nearby, while Centennial Park, Moore Park and the sporting and entertainment facilities surrounding Allianz Stadium are within easy reach.

The Sydney CBD is a short journey west along Oxford Street, while Bondi Junction and the eastern beaches are accessible to the east. Frequent bus services along Oxford Street were also highlighted in the government's assessment, which found the development would have minimal impact on the surrounding road network.

The approval adds to Toohey Miller's growing Sydney portfolio, which includes No.1 Onslow Place and Barncleuth in Elizabeth Bay and Saint Martens in Mosman.

The developer is also working towards a 2027 launch of a landmark tower in Pyrmont.