NSW government announces plans to fast-track low to mid-rise housing

The NSW government has announced reforms to fast-track a broader diversity of homes such as residential flat buildings of three to six storeys, town houses, and duplexes in suburbs that do not normally allow them.

According to the Minns government, the reforms will aim to create capacity for industry to deliver around 112,000 new homes across Hunter, Central Coast, Greater Sydney region, and Illawarra-Shoalhaven, representing 30 per cent of the number of homes needed to build under its Housing Accord target of 377,000 new homes by 2029.

The state government “identified a significant gap” in the approval of density in October, with terraces and one to two-storey unit blocks allowed under R2 zoning (land which is made up of low-density housing) in only two of 32 local environmental plans (LEPs).

The proposed changes include:

• Dual occupancies (two separate homes on a single lot), such as duplexes, in all R2 low-density residential zones across all of NSW.

• Terraces, town houses, and two-storey apartment blocks near transport hubs and town centres in R2 low-density residential zones across the Greater Sydney region, Hunter, Central Coast, and Illawarra (the Six Cities region).

• Mid-rise apartment blocks near transport hubs and town centres in R3 medium-density zones and appropriate employment zones. This will mean more housing just a short 10-minute walk (800 metres) from transport hubs, shops, and amenities.

Minister for Planning and Public Spaces Paul Scully said: “Sydney is one of the least dense cities in the world, but fewer than half of councils allow for low and mid-rise residential buildings in areas zoned for such homes.

“We’re confronting a housing crisis so we need to change the way we’re plan for more housing, we can’t keep building out we need to create capacity for more infill, with more diverse types of homes.”

The proposed changes were welcomed by the Housing Industry Association (HIA), with HIA executive director NSW David Bare stating that this is “a great step forward in unlocking development potential of low-density residential areas in Greater Sydney and across NSW”.

“Allowing dual occupancy developments on land zoned R2 will support the delivery of more housing,” Mr Bare added.

“To achieve this, it is important that the changes to planning controls are consistent across all local government areas. Planning controls that facilitate these developments being undertaken as complying development are also vital.

“This will ensure the approval process is streamlined, minimising delays and reducing costs for the families who can take advantage of the option to knock down their old home on a large block and replace it with two dwellings.”

Mr Bare concluded that the HIA looks forward to the release of the draft proposals next week and to continue to work in collaboration with the state government on the reforms to increase the supply of new housing across NSW.

[RELATED: Declining vacant land sales deepen housing supply challenges]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

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