The new planning rules allow dual-occupancies, terraces, townhouses, and residential flat buildings to be constructed within 800 metres (a 10-minute walk) of 171 town centres and transport hubs throughout metropolitan Sydney, the Central Coast, Illawarra-Shoalhaven, and Hunter regions.
Currently, only two out of 33 councils in Greater Sydney permit terraces and townhouses in low-density (R2) zones, while residential flat buildings are prohibited in 60% of medium-density (R3) zones.
The new policy removes these restrictions, allowing construction of terraces, townhouses, and low-rise buildings in R1 and R2 zones, as well as medium-rise residential flat buildings in R3 and R4 zones.
However, Premier Chris Minns explained councils will maintain authority over essential development considerations, including parking, light access, and minimum frontages.
“These types of homes have played a really important part in delivering homes over the last century but recently councils have effectively banned them, this reform changes that,” he said.
“Housing is the single largest cost of living pressure people are facing and these changes will deliver more homes for young people, families and workers. The homes built under these reforms will be close to transport, open spaces and services that people need, creating better connected and more liveable neighbourhoods by making the most of existing critical infrastructure.”
Minister for Planning and Public Spaces Paul Scully said the reforms would address a crucial gap in the housing market.
“Allowing low and mid-rise housing in more locations will help increase the number of homes in our state, improve affordability for renters and buyers and give people a choice on the type of home they want to live in,” Mr Scully said.
Minister Scully added the policy would further enable the rollout of the NSW Pattern Book, allowing families, young people, and downsizers access to architecturally designed homes in previously restricted areas, along with a streamlined approval process.
Due to significant bushfire and flood risks, the Blue Mountains, Hawkesbury, and Wollondilly Local Government Areas have been excluded from stage two of the reforms.
Heritage conservation areas will be included but require council assessment, while heritage-listed items will remain protected.
