House prices in a quiet Western Sydney suburb have gone into free fall after plans were unveiled to build a 70,000-plot graveyard in the area, with one local real estate agent claiming some homes had already lost more than $600,000 in value.

Residents told news.com.au the controversial plan to turn Carnarvon Golf Course in Lidcombe into a giant cemetery are unfair, while property insiders claim property prices have plummeted by 30 per cent and auctions have come to a standstill.

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The Metropolitan Memorial Parks (MM), which manages Crown Land reserves and cemeteries on them for the NSW Government, said the course was an “ideal location” for a graveyard and meets “all the best practice criteria” for a modern memorial park.

But residents aren’t sold on the idea.

Many claim the flood-prone land is unsuitable for burials, goes against government guidelines, and would see the area’s last big green open space and beloved community hub disappear.

Several letters sent by local real estate agents, seen by news.com.au, also warn that prices have already dropped dramatically, while auctions have had to be withdrawn after failing to secure a single bidder.

One letter, by local estate agent Michael Karouche, claimed some homes have lost more than $600,000 in value.

He said most buyers in the area are of Asian descent and that they will not buy a property opposite a cemetery because cultural beliefs such as feng shui discourage them from living near burial sites.

Meanwhile, the proposal has also hit people’s finances, as shrinking property prices force mature-aged residents to put off retirement.

Karen Wright, 62, who has lived in the area since 1999, said her family has ditched plans to sell one of their properties.

“We used to have several sales a week in the area. Recently – I’ve been tracking it for a couple of years, actually, but even more so recently – there has been virtually no sales at the weekend. I think if that’s happening now, what’s going to happen when the cemetery is actually here?” she said.

Kerrie Gerard, 68, said she sold her late mother’s home for up to $150,000 less than expected because of the proposal.

“We didn’t have any choice. It was either pay the Capital Gains Tax because, obviously, [it was] after she’s passed, or we had to sell. Either way, we’d have to lose money. We were told by the estate agent that the sale, because of the proposed cemetery, cost us between $100,000 and $150,000,” she said.

“Normally, mum and dad’s house – directly opposite the golf course – was the highest peak in Carnarvon. So, if you put a two-storey [house] up, it would have the best view of the golf course.”

Meanwhile, Brendan Donnellan, 59, said he’s considering coming out of retirement after the value of his property dropped by $300,000.

“It’s absolutely devastating. I’ve just retired and I’m sitting in a four-bedroom house that I probably don’t need to be sitting in but for me to downsize – I’ve lost too much money to think about moving – and the government has just forgotten that the people here are affected by it,” he said.

In March, he told The Daily Telegraph the value of his property was $1.8 million.

“[NSW Premier Chris] Minns, [NSW minister Stephen] Kamper, [NSW minister Paul] Scully – none of them have come out and faced the people who pay their wages, the people of NSW, and they should come face us and talk to us and tell us why,” he told news.com.au.

It also means Mr Donnellan can’t help out his kids financially.

“We were expecting to downsize, to help our children … get into the housing market, get their debts down because the value of houses are fairly high in Sydney and now that’s just changed our plans.

“That extra money would have been an absolute godsend for them.”

Mohammed Bardouh, 61, said he felt “trapped”. He built his home 10 years ago just so he could be near the golf course.

And Choi Yau said her home would be sandwiched between the Carnarvon site and Rockwood Cemetery, which is Sydney’s largest existing cemetery, according to the MMP.

“I can’t imagine in the future, if this goes ahead, driving our car past the cemetery. It has mentally affected me a lot. I’m feeling very stressed,” she said.

‘Bodies will be shifting’

The move has also drawn criticism from Labor MPs and councillors.

Lynda Voltz, the Labor MP for the NSW seat of Auburn, said the golf course was the one piece of big green space the community has left and accused the MMP of choosing the site without carrying out a proper assessment.

“To take something that is highly used – the most used sporting precinct in our area – and turn it into a cemetery when no one can use it, it’s absolutely something we’re opposed to,” she said.

Cumberland City Labor councillor Enver Yasar said the move looked like “a sugar hit land-grab” from the MMP.

“Instead of doing the work needed to scope out the new site, they looked at the map, saw this piece of green land next to Rookwood, it’s Crown Land, it’s easy pickings, a quick sugar hit, and that’s the decision they made,” he said, pointing out the area is a flood zone.

“If it is flooding on the surface, can you imagine what’s happening underneath? Bodies will be shifting.”

Independent Cumberland City councillor Helen Hughes unleashed on the NSW Government.

“They are abusing us by taking away this place. It’s critical to have for the community. It’s a beautiful club to be in. I’ve been there for weddings. I’ve been there for wakes – I’m not denying that – and 21st birthdays. The socialisation for people is critical and the state government is just abusing us enormously by taking away our needs for our community.”

She accused the government of taking the community for granted.

“We are a working class area and we’ve always been Labor and so they can use us and abuse us. The minister has not had the guts to come here and speak with the community and that’s what we’ve been asking for.”

Residents are consulting with environmental lawyers to fight the plan if it goes ahead, according to The Daily Telegraph.

A public consultation on the proposal ran for several weeks late last year. A report on the feedback from the consultation is currently with the NSW Government. A final decision on the fate of Carnarvon Golf Course is due any day now.

A spokesperson from the NSW Government’s Department of Planning, Housing and Infrastructure said: “The NSW Government is considering the Metropolitan Memorial Parks’ (MMP) report, along with community views and feedback received throughout the consultation process”.

“A new Crown cemetery has not been built in central Sydney for more than 80 years, despite population growth and cultural change, with some faith groups and diverse communities set to run out of burial space in as little as two years,” the spokesperson said.

“No decision has been made on the proposal for Carnarvon Golf Course to become a cemetery. The community will be kept informed as the Government’s consideration of the proposal progresses.”

Cumberland City Council, which opposes the plans, has been contacted for comment.

The NSW Government tasked the MMP with identifying options to significantly increase the supply of new burial space. This included assessing options at existing sites and potential new sites, according to MMP’s website.

It comes after a recent NSW Government review found public cemeteries across Sydney are running out of burial space. It estimates without new land, the MMP will start turning away some faith groups in less than two years while sites will be fully exhausted within a decade after that.

The MMP said a modern memorial park will be aesthetically pleasing with landscaped open space, accessible parklands, walking paths and quiet areas for reflection that can be enjoyed by the wider community.

Initial studies say the limited flooding risk can be mitigated by landscaping.

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