As it was, an outsider called Locarno - a chestnut stallion from New Zealand - beat the favourite, storming to victory from the back of the field and giving his name to the first residential development on the site of the old paceway.

The first homes and roads at Harold Park, Sydney's former home of harness racing, were opened on Thursday by lord mayor Clover Moore. Locarno, with its 298 apartments and terraces, is one of six residential precincts planned for the Glebe site.

The last race was held in 2010 before developer Mirvac began work on the $1.1 billion project, which will be home to 2500 people. Earlier this month its most recent residential release, Altivolo - named for the first winner under lights in 1949 - sold out in a day.

One-third of the 10.6 hectare site has been set aside for future parkland, forming a green corridor to the harbour foreshore, while land has also been dedicated to affordable housing for essential workers.

Cr Moore said there was a great need for more affordable housing in the City of Sydney. ‘‘We need people who help to run the city being able to live within the city,’’ she said. ‘‘This site is a model of what we hope to achieve ... in terms of providing housing right in the heart of the city, close to where people work, close to childcare, close to facilities.’’

Mirvac’s chief executive Susan Lloyd-Hurwitz said Harold Park would give the inner-city ‘‘a new park that leads right down to the harbour, another 2km of cycle paths, easier access to Jubilee light rail station and a new community space with the proposed future restoration and adaptive reuse of the [Rozelle] Tramsheds’’.

Jan Wilson from the Glebe Society said the increased population would put a strain on public transport, but would also contribute to ‘‘a vibrant community’’. Numerous community meetings with Mirvac and the council helped secure access to public space and a link to the foreshore, she said.

The first residents are set to move in within two weeks.