1 month ago
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January 27, 2026 — 5:00am
Dozens of Rose Bay residents fear their properties and swimming pools could be at risk of structural damage and “significant cracking” as part of plans to bulldoze properties on low-lying land in the sought-after suburb to make way for a multimillion-dollar apartment development.
A geotechnical report commissioned on behalf of homeowners living near the site of a proposed eight-storey apartment development on Dover Road has found up to 40 nearby properties could be at risk of damage and subsidence due to the combination of excavation works and removal of groundwater required for the $86 million project.
The release of plans for the proposed development, which is being classed as a state significant housing project, has added fuel to community concerns over the impacts of a string of large-scale developments planned in the coastal suburb triggered by new planning reforms aimed at boosting low and mid-rise housing near town centres and transport hubs.
Woollahra Council is so concerned over the impacts of the unfolding housing boom that it wants the entire Rose Bay suburb, along with nearby Double Bay, declared “exempt” from the low and mid-rise reforms due to the subsurface conditions and high water table it argues renders the region unsuitable for multi-storey housing.
Development plans for the Dover Road project show construction works at the site would involve excavating an underground cavern at a depth of up to 9.38 metres to carve out two levels of basement carparking.
Plans lodged on behalf of site developer Fortis showed works would include measures to reduce the risks on surrounding properties, including the safe extraction of groundwater which is expected to be encountered at a depth of about 2.5 metres below ground surface
But a geotechnical report commissioned on behalf of concerned neighbours and carried out by Sydney geotechnical consultancy company Fortify Geotech has flagged a string of concerns over the project including the sandy soil conditions of the development site it stated was “not favourable for supporting” the development.
The concerns also centred on the combination excavation and de-watering works it found had the potential to draw down groundwater at a depth of up to 1.3 metres within an 80-metre radius of the site, leading to possible structural integrity risks, subsidence and damage to 40 adjacent properties.
“There are at least nine structures within 10m of the proposed basement excavation and up to 40 properties that will have groundwater table drawdown under their properties and would most likely be found on shallow footings,” the report stated.
“Expected structural damage to neighbouring properties includes internal cracking of plaster, external cracking of masonry, cracking of floor slabs and tiles, and cracking of pools.”
The findings of the geotechnical report commissioned by neighbours is at odds with the findings of a separate geotechnical report commissioned by Fortis which stated the proposed development would have a “minimal impact” on the water table and that the predicated drawdown of groundwater on neighbouring properties would be “negligible”.
A spokeswoman for Fortis said it would “not be appropriate” for the company “to comment on external reports commissioned by third parties” but in a statement said the company intends to “appoint a skilled and reputable builder who will be responsible to ensure that neighbouring properties are not affected by changes in the water table level during construction works”.
“Our project documentation has been prepared by qualified experts in accordance with standards (set out by the NSW Government) and will be considered by the NSW Department of Planning as part of its independent assessment,” the spokeswoman said.
Julian Gold, whose Newcastle Street home sits within the 80-metre radius of the site, is worried his century-old home could become collateral damage if the development proceeds.
Gold rejected suggestions the geotechnical report commissioned by neighbours was being used as a means to “block” development in the suburb.
“I’m a great advocate for more affordable housing, but housing isn’t the issue here, the issue is the water table under Rose Bay is up to 300mm below the road surface, the homes are built on sand, and when you consider the age of existing homes, there are real concerns over the structural integrity of properties,” he said.
University of NSW City Futures Research Centre Professor of urban science Chris Pettit said the conflicting findings of the geotechnical reports were “concerning, if not surprising”.
“The planning system in NSW has been set up in a way in which consultants are appointed by developers to assess impacts such as geotechnical hazards and heritage and even when the reports are carried out by reputable accredited firms, there is a question of independence,” he said.
Woollahra Council, in a submission to the NSW government, has called for the Dover Road proposal to be refused due to hydrological hazards and the “structural and geological integrity” of surrounding properties it stated could be impacted by the drawdown of groundwater during excavation works.
The development proposal is assessed by the NSW Department of Planning, which in a statement said it “has requested the applicant to provide a response to the issues raised in all submissions including the concerns raised in relation to environmental risks”.
Carmen McLoughlin, a member of the Double Bay Residents Association, said community angst surrounding the development had been heightened by alleged structural damage to homes in Rose Bay resulting from construction works at other nearby building sites.
The report by Fortify Geotechnical also cited the “well-known case of the Mascot Towers” in which construction de-watering was alleged to have caused damage to the high-rise apartment building.
“This example highlights the risk and danger of excavating basements and dewatering next to existing structures,” the report concluded.
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