In 1998, Woollahra Council, which controlled the site of the bus interchange, finalised an agreement to sell the airspace above the site to Meriton Apartments. Construction began in April 1999 for a new bus interchange and two residential apartment towers of over 70 m high. While this took place, upgrade works were also performed on Bondi Junction railway station. The new interchange was tentatively opened in September 2000 for the Sydney Olympics but subsequently closed for further work. The new bus interchange opened in July 2001. In 2003, Waverley Council upgraded the Oxford Street pedestrian mall and embarked on a general upgrade of streets and footpaths in the commercial area.