A Sydney man has been released from jail one week after he was charged over breaking into his former home, which had been compulsorily acquired by the NSW government for the WestConnex motorway project.

Van Ngo, 68, spent seven nights in Silverwater Correctional Centre after he allegedly returned to his former home in Campbell Street, St Peters, in Sydney's inner west, hours after being evicted last Friday.

In Newtown Local Court on Friday, Mr Ngo, through his lawyers, pleaded not guilty to one count of property damage and one count of entering a premises without a lawful excuse

In a decision that surprised his lawyers and his family, Mr Ngo was denied bail at his first court appearance on Tuesday despite having no criminal record or history of violence.