The future YHA Railway Square will cater for up to 500 travellers.

Hostel operator YHA Australia has released preliminary renderings inside its significantly expanded new Railway Square location once it is redeveloped as part of the global headquarters of home-grown IT giant, Atlassian.

Plans to redevelop the former Inwards Parcel Sheds at 8-10 Lee Street in Haymarket were this week approved by the NSW Department of Planning, Industry and Environment. The decision kick-starts the NSW Government’s ambitions to transform the Railway Square pocket of the CBD into ‘Tech Central’, a hub of innovation and home to a variety of businesses shaping future generations of technology and societal interaction.

Lower levels of the 39-storey tower will see the popular and long-standing YHA Railway Square modernised and expanded to cater to up to 500 travellers at full capacity.

The new hostel will feature a variety of co-living and communal spaces.

Sustainability will be at the heart of the new development, with timber to be used as a primary building material. Early renderings show a space naturally floodlit with a variety of spaces designed to suit young travellers including private and communal dining and rooms for socialising and meeting fellow travellers. Accommodations will include both private and dormitory-style rooms catering to individuals, couples and travelling groups.

YHA Australia CEO, Paul McGrath, said the new Atlassian tower will revolutionise what the YHA offering represents for both domestic and international visitors.

“The new YHA at Railway Square will be created for both international and Australian visitors – and will transform perceptions of affordable accommodation with its ultra-modern design and fit-out,” McGrath said.

The improved YHA Railway Square will be open in 2026.

“Whether solo travellers, digital nomads, or groups of friends and families exploring Sydney’s events and attractions, the YHA will be their ideal base, in a buzzing hub.”

Construction of the new tower will begin in 2022, with a four-year completion plan.

NSW Minister for Jobs and Investment, Stuart Ayres, said planning controls were now in place to see the redeveloped area become Sydney’s answer to Silicon Valley.

“The revamp of Central Station and delivery of Tech Central will create a commercial core in the City’s south that would include a public domain with new open space, shops and cafes all on top of the rail corridor,” Minister Ayres said.