In and of itself, I honestly don’t think that having public housing tenants will devalue your property.
When a prospective owner does the usual strata searches, neither the landlord names nor the owner-occupier names are listed; only the % (or absolute number) of units that are owner occupied vs leased.
No prospective owner could glean anything from that information.
However, if the department of housing tenants have caused a lot of issues and disputes which have been dealt with at a formal level, then of course this will turn up and may have a bearing on the value of your property; but any infractions/CTTT action will also show up, so the owners who laid illegal IKEA floors and were forced to rip them up will show as will the owner who sub-let his car space and now permanently parks in the visitor spot…it’s all relative. To the point of overcrowding, you are more likely to have that via private rentals with uni students than department of housing tenants.
As has been noted, you can issue a notice to comply. The department has to abide by the rules of the complex. Additionally their tenants have a social charter that means the department can (and will) evict them and refuse additional public housing for serious matters.