Hundreds on the estate will be offered the opportunity to buy when the Housing Department sells the existing housing.

Housing Minister Matt Brown, announcing the plan last week, said: "They can achieve the great Australian dream and buy the most affordable homes in Sydney for $170,000."

"We know it's a tough market out there at the moment.

"It must be emphasised that no Housing NSW resident will be left without a home.

"Those residents who, at some time in the future, are required to relocate will be provided with a suitable home in a location that meets the residents' needs.

"I know that moving is a major disruption to a household. We will ensure that if any households have to relocate it is done with as little impact as possible."

Long-term resident Dorothy Gray, who backs a mix of public and private housing, said news reports had worried residents who could not afford to buy.

"It's not just something that's popped up; it's something that was planned a long time ago and I think all of the publicity has done more harm than good," she said.

"The way it is in Macquarie Fields there's too much public housing together.

"If they sell the houses it's not going to make any change in the people but people will keep their home clean and treat it better."

Ms Gray said the regeneration project including affordable housing, bulldozing the worst part of the estate for housing for seniors, and creating employment and training would make the suburb better.

"I'd take up the offer if I could but I'm 67 so I'll probably move to the aged homes across the road."

Macquarie Fields MP Andrew McDonald said the scheme was a "new beginning".

"We have great hope for the future of children in our area," he said. "The reputation here is not deserved; this is a great place to live."

Details: Housing NSW 98290888 or www.housing.nsw.gov.au.