Density across Sydney is going up with an eight-storey residential building in a harbourside suburb among the latest to take advantage of planning reforms.

The plans for the site at Wollstonecraft would take advantage of the NSW low and midrise housing policy that is expected to create 112,000 homes across the state within five years.

The 32-apartment project that includes five affordable units would replace two single-storey homes at 7-9 Selwyn Street, 6.6km north of the CBD by road.