One of Sydney’s most well-heeled suburbs could get a new train station, which would unlock a plan to build thousands of new homes.

Woollahra, in the city’s Eastern Suburbs has a partially completed “ghost” station which was abandoned in the 1970s.

It could form an extra stop on the Eastern Suburbs line, which goes to Bondi Junction.

No alternative has been announced.

The paper said the government is giving serious consideration to Woollahra among a swath of options to deliver new homes around the city.

According to government sources, the state government is considering a plan to rezone the area around the station, allowing for housing towers to be constructed above it.

The median price of a three bed house there is $3.75m, according to Domain.

A two bed unit costs a median of $1.4m.

A report commissioned by Premier Chris Minns and conducted by the Centre for International Economics revealed that Woollahra is the most suitable Sydney council area for expanding high- and mid-density housing developments.

A state government spokesperson told the Herald it wasn’t making any announcements.

“We’re not going to play whack-a-mole with potential projects to deliver more housing for Sydney,” they said.

“We have implemented the most ambitious planning reforms in the state’s history and will persist in reforming the system to provide the necessary homes for young people and families.”

The government’s target is 377,000 new homes by 2029.

Woollahra station was never finished because of costs, and locals also opposed it.

Plans to revive it alongside new housing were also shelved in the 1990s.

9News has contacted the Department of Planning, Housing and Infrastructure for comment.