New Planning Rules: NSW Government’s Housing Supply Reforms
Housing supply and affordability remain among the most pressing challenges in New South Wales. In response, the NSW Government announced significant reforms to planning laws on 28 November 2023, aimed at accelerating the development of low-rise and mid-rise housing.
These changes could reshape the urban landscape, allowing for the construction of townhouses, terraces, and small apartment buildings in areas where such developments were previously restricted. The reforms are designed to streamline approvals and increase housing availability in key locations across Greater Sydney, Hunter, Central Coast, and Illawarra-Shoalhaven.
Key Changes in the Planning Rules
1. Dual Occupancies Now Permitted Statewide
Homeowners across NSW will now be able to build dual occupancies—such as duplexes—on properties within R2 low-density residential zones, removing previous restrictions.
2. Expansion of Low-Rise Housing Near Transport Hubs
In Greater Sydney, Hunter, Central Coast, and Illawarra, low-density areas (R2) will now allow:
- Terraces and townhouses
- Two-storey apartment buildings
- Development near transport hubs and town centres
3. Mid-Rise Developments in Key Growth Areas
Medium-density zones (R3) and select employment zones will now support:
- Mid-rise apartment buildings (within 800 metres of transport hubs and commercial areas)
- More diverse housing options within walkable communities
What Does This Mean for Property Owners?
These changes present a major opportunity for property owners and developers. Projects that were previously prohibited under local council regulations may now be permissible, unlocking significant development potential.
The NSW Government estimates that these reforms could enable the construction of 112,000 new homes across Greater Sydney, Hunter, Central Coast, and Illawarra-Shoalhaven, helping to address the critical housing shortage.
The public consultation period for these proposed changes will open in early December 2023. For further details, you can access the NSW State Government Media Release [here].
