Police and City of Sydney workers moved into the camp towards the Macquarie St end of Martin Place on Saturday morning.
The City of Sydney says LendLease Building was approved to construct hoardings on Investa's 60 Martin Place development in May.
Police and City of Sydney workers moved into the camp on Saturday morning, leaving beds, cots and clothes on the Macquarie Street end of the thoroughfare.
A note, written in chalk in the near-empty camp said: "They tried to bury us. They didn't know we were seeds."
Men and women wearing high visibility clothing swept rubbish into bags.
Family and Community Services staff set up tents, where they offered assistance to those needing to find accommodation.
State Premier Gladys Berejiklian said preparations have long been in place since it was realised that the homeless population would be affected by the inner city construction.
"We knew this day would come," she said.
"We've made sure Family and Community Services has been there to support those people."
The area is still flanked by banners promoting Thursday's CEO Sleepout, an annual fundraiser drawing attention to the issues.
But for the homeless, the very real issue of where they would be sleeping that night was uppermost in their minds.
'People have walked away traumatised'
Lanz Priestley, co-founder of 24-7 Street Kitchen and Safe Space, said the number of homeless people in Australia is at staggering levels.
"What about the other 1400 that are homeless in Sydney right now? Never mind those that are homeless in all the other states. Yeah unless we solve this nationally we're not gonna solve it at all," he told SBS World News.
The reassurances of help and support from the local council and state governments did not ring true for some of the homeless in Martin Place.
