An AFP photographer at the scene said following an inspection of Opal Tower by engineers and firefighters, police were allowing residents of the surrounding buildings to return to their homes.
All residents of the apartment tower were evacuated yesterday after reports of loud "cracking noises" coming from within the structure which, if we're honest, is not ideal in your brand spanking new home.
Specialists were due to enter the 10th floor to inspect the crack and assess whether the building was safe, Greg White, a spokesman for New South Wales Fire And Rescue, told reporters.
There's now no timeline on when the residents of the 51 unsafe apartments will be allowed to return to their homes.
A handful of them were left to sleep on the concrete ground in a temporary shelter at the nearby Royal Agricultural Society, while others made their own arrangements.
Residents flocked to the nearby park while engineers found the building had shifted by two millimetres.
The 36-story building includes 392 apartments, a retail area, and a childcare center, according to the Sydney Morning Herald.
A number of other buildings in the vicinity have also been evacuated.
"This is a large building and it's critical the safety of the residents comes first", said NSW Police Force Acting Assistant Commissioner Julie Boon.
An exclusion zone with a radius of half a mile was established around the building, forcing the evacuation of neighboring buildings and the closure of roads and a train station, Sky News Australia reported.
But firefighters said they were confident of the building's integrity, apart from the affected units.
One woman sitting stranded at the park said: "It's Christmas, I just want to go home".
The building was built by Ecove as part of a mixed-use development.
A resident of Opal Tower told local media he heard a loud bang as if something in the building had "snapped".
"We spoke to people in the building and they got told to evacuate. they thought it was a fire".
The tower was designed by architecture firm Bates Smart and built by Icon Construction.