Sex business may be good business but Sydney thinks otherwise as the City Council dumped on Tuesday night proposals to expand the Stiletto bordello at Camperdown, which is located west of the inner city.

Deciding en masse, the City of Sydney Council declared that establishing a gigantic brothel would be detrimental to the general interest of Sydney residents, especially those living near the brothel's area of operation.

The council revealed that as many as 80 submissions from nearby residents protested the site's negative impacts to neighbourhood traffics, apart from the business' social and moral effects to the western part of the city.

In voicing out his vote against the brothel expansion, Lord Mayor Clover Moore described the mammoth improvements for the sex business site as both untimely and uncalled for.

"I'm concerned about the impact that a brothel of this size will have on nearby residents. And I want to stress that, it's a brothel of this size," Moore was quoted by ABC as saying.

"The intensification of use by way of additional floor area and rooms will have an adverse impact on the character and the amenity of the neighbouring residential area," he added.

According to the modification blueprint submitted by realty developer Artazan Property Group, the new Parramatta Road brothel would end up with up to 40 working rooms and 21 waiting rooms by the end of the construction work.

Such extensive expansion for the brothel, Moore said, would contradict with Sydney's general city plan as he stressed that "this development is inconsistent with our vision for our city."

"Residents have told councillors about the impacts from traffic and antisocial behaviour. Those impacts are expected to increase if the size is doubled. It is the size I think that is of great concern," Moore added.

In explaining their votes against the brothel expansion, most of the 10 city councillors clarified that they have no issue against operations of registered sex business but the magnitude of its size would definitely be met with vehement opposition.

Also, one councillor called for a revisit on in-placed city ordinances that would limit the size and specify the zoning of future brothel operations.