Micro apartments will be included in the mix of units adjacent to the Western Distributor and Anzac Bridge, to meet the city's demand for affordable housing. Urban Growth has earmarked the expansion of the Sydney Fish Markets into a market district encompassing housing, night time dining and fresh food markets as the first priority for its Bays Precinct renewal in Sydney's inner west. If the plan is approved by the government by August, work would begin on a floating walkway connecting Glebe to Pyrmont by the end of the year, said Urban Growth chief executive David Pitchford. Urban Growth has refused to give a target for the number of dwelling its expects to fit into the 80-hectare Bays Precinct, stretching from White Bay to Pyrmont.

Mr Pitchford said apartments could match the existing height of 28 to 32 storeys at Jacksons Landing, and be built "over, around and on top of facilities that exist", including the fish market and boat sheds. "Smaller, but wonderfully designed apartments, are part of it. But its not just about affordable housing," he said. The independent Sydney MP Alex Greenwich said a continuous foreshore walk would improve the area, but any expansion of the fish market needed to avoid becoming "Westfield on the water". Mr Greenwich was concerned by the lack of detail on housing density. "Particularly on the Pyrmont side, this is already the most densely populated area in Australia," he said. The Greens MP for Balmain, Jamie Parker, said a transport plan was needed before public land was sold off to private interests.

"People are right to be cautious of 'consultation' where government has already identified sites for high density housing development, yet can't identify public open space, sporting fields and community facilities," Mr Parker said. "Sydneysiders were sold the sunny vision of public waterfront parklands and community facilities at Barangaroo, but the reality has turned out to be high rise and high rollers." Property giant Brookfield Multiplex sought to make an unsolicited bid to develop Blackwattle Bay last year. Instead, the NSW government held an international summit to canvass ideas for the publicly owned land. Mr Pitchford said Brookfield Multiplex can submit its proposal next week, alongside other business proposals. Former Brookfield Multiplex executive John Shepherd told Fairfax Media he had been engaged by Dahua to put together a separate $3 billion bid called Destination Blackwattle Bay. "Apartments will pay for the infrastructure and community facilities. That is good and what you want. But we also want the fish markets to prosper and generate as many jobs afterwards as during construction," Mr Shepherd said.

He said the bid would be "at least $3 billion". "The Chinese investment market is greater than $5 trillion. If Australia wants to grow it can't scare off those investors," he said. A survey by Sydney Fish Markets found 80 per cent of customers believed it was important to keep the wholesale auction and fisherman's wharf alongside retail outlets in any redevelopment. Mr Pitchford said any redevelopment would "preserve its authenticity".