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The NSW government announced its intention to invest in low- to mid-rise housing across the state in a bid to improve diverse housing supply.
According to the government, low-rise housing is generally one to two storeys and includes dual occupancies (two dwellings on the same lot), terraces, town houses, and low-rise apartment buildings. It does not include freestanding houses. Meanwhile, mid-rise housing is generally three- to six-storey apartment buildings.
The two-stage operation is expected to deliver 112,000 homes over the next five years across Greater Sydney, Central Coast, Lower Hunter, Newcastle, and Illawarra-Shoalhaven.
Stage one of the initiative began on 1 July 2024, allowing dual occupancies and semi-detached homes in the R2 low-density residential zone across all of NSW.
Stage two, launching on 28 February 2025, will introduce new planning controls to allow dual occupancies, terraces, town houses, apartments and shop top housing in low and mid-rise housing areas.
“We need more low and mid-rise housing to fill the gap between freestanding homes and high-rise apartment buildings, so that everyone can have a choice in the type of homes they live in,” said NSW government.
“The Low and Mid-Rise Housing Policy will be part of the State Environmental Planning Policy (Housing) 2021. The policy will change planning controls within 800 metres of well-located shops, services and transport hubs to allow low and mid-rise housing.”
Property Council Australia has labelled this move “game-changing” and believes these reforms will be the “best shot” to deliver promises made in the National Housing Accord.
“These long-awaited reforms bring certainty and confidence to support the industry to deliver more housing, improve affordability, and provide greater choice for homebuyers and renters,” said Property Council NSW executive director Katie Stevenson.
“The reforms enable well-designed, missing middle housing and will enable delivery of up to a third of our National Housing Accord target – more than 100,000 new homes. When the reforms come into effect from next week, families, first-home buyers, and downsizers will have more housing options to help them stay in their communities as their housing needs change, close to family and friends.”
The areas included in the reforms were strategically picked due to being high-density and well-connected to transport and other services.
Stevenson said it’s now up to local councils to “embrace these changes”.
“This is the best shot we have to deliver much-needed housing supply during the five-year National Housing Accord period, and with this certainty, industry can get on with the job of building homes,” Stevenson said.
[Related: Housing target already behind: Will we hit 1.2m homes?]
