The Baird government has taken the first step towards the Hong Kong private railway model, issuing a tender for the design of high-rise towers above six new stations on the Metro City and Southwest line.

The sites include valuable Martin Place, Pitt Street and Barangaroo real estate in the city, as well as Waterloo in the inner east, Victoria Cross in North Sydney and Chatswood.

Plans in motion for MTR development: Premier Mike Baird. Credit:John Veage

Companies have been asked to submit concept designs for the development of the airspace above the stations, which could cover technical and engineering advice on what was possible, to market testing of what the real estate was worth and likely tenants.

Hong Kong's railway was built by private company MTR in exchange for property development rights in the airspace above each station. Typically these stations are integrated with high-rise residential towers and retail complexes.