A hidden train station abandoned in the 1970s following local outcry is set to be redeveloped as part of a state government housing boost.

Woollahra’s railway station was first planned nearly 50 years ago but was never completed.

Backlash from locals at the time resulted in the government abandoning the idea.

But Australia’s housing crisis has reawakened the need for a train network servicing this leafy stretch of Sydney, Premier Chris Minns said today.

Woollahra station promises to be just an eight-minute trip from Sydney’s CBD.

The suburb has been labelled the “most feasible” local government area in NSW to build new housing.

The state government said it will rezone both Woollahra and Edgecliff stations to allow more homes to be built around the area.

The rezoning is expected to take around two years.

Sydney Water and Infrastructure NSW confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 homes, the government said.

“For too long, young people and families in NSW have been forced to choose between moving away from the Sydney CBD or not being able to afford a home at all,” said Minns.

“This new train station will allow us to deliver up to ten thousand new homes right here in the heart of Sydney, close to jobs, public transport, green space and essential services.”

Minister for Transport John Graham said the unfinished Woollahra station has long been an “opportunity squandered”.

“I applaud Neville Wran for his foresight, including a future station at Woollahra when his government completed the Eastern Suburbs line,” Graham said.

“That future has now arrived, and will deliver housing and transport close to the Sydney’s CBD.”

The government-led housing boost aims to help young people who are locked out of the Sydney property market.

Sydney is “losing twice as many young people as it is gaining”, according to Minns.

Minister for Housing and Homelessness Rose Jackson said the extra 10,000 homes will unlock a fresh area in Sydney for homebuyers.

“For so many the Australian dream has slipped out of reach and if nothing changes our city will be one with no grandchildren. I want our city to dream again – a dream of affordable homes for all and a future for every family,” she said.

“That’s why we’re locking in a dedicated portion of affordable housing from the start, giving people from all walks of life a fair chance to live in quality homes, close to opportunity.

“We are not afraid to take on NIMBYs to deliver more housing where there is the space and infrastructure to support it. This new station just makes sense.”