NSW’s New Low & Mid-Rise Housing Policy: What It Means for You

The New South Wales (NSW) Government has introduced the Low and Mid-Rise Housing Policy to address the growing demand for diverse and affordable housing, effective as of today, Friday the 28th of February 2025. This policy facilitates the development of various housing types—including dual occupancies, terraces, townhouses, residential flat buildings and shop-top housing —in areas close to town centres and transport hubs. These reforms have been established to provide more housing options near key areas like town centres and train stations.

If you're considering redeveloping your property or investing in a project under these new regulations, understanding the policy is crucial. Our team specializes in navigating these changes and helping you maximize your property's potential while ensuring full compliance.

Effective from 28 February 2025 - What's Changing?

New planning rules will apply to residential zoned land within 800 metres walking distance from a mapped town centre, train station and light rail stations across Sydney, Central Coast, Illawarra, and the Hunter.

Non-Discretionary Development Standards

One of the most significant changes introduced is the implementation of non-discretionary standards. These standards establish clear and consistent guidelines that developers and property owners must adhere to, ensuring greater certainty in the planning process. By simplifying regulations and reducing bureaucratic barriers, these streamlined standards aim to accelerate housing development in key areas, helping to address the ongoing housing crisis.

Dual Occupancies

Two dwellings on one lot - making it easier to build in more residential zones state wide - not just within the low and mid-rise housing areas.

Minimum Lot Area - 450m²
Minimum Lot Frontage - 12m
Subdivision - (R1, R2, R3 only): min 225 m2 per lot / 6 m width per lot

Multi-Dwelling Housing (Townhouses)

3+ Dwellings on one lot- all sharing a common side wall.

Minimum Lot Area - 500m²
Minimum Lot Frontage - 12m

Multi-Dwelling Housing (Terraces)

3+ Terraces on one lot - all sharing a common side wall.

Minimum Lot Area - 500m²
Minimum Lot Frontage - 18m
Subdivision - (R1, R2, R3 only): min 165 m2 per lot / 6 m width per lot

The policy broadens the range of permissible housing in residential zones, offering increased flexibility for homeowners and developers.

This streamlined approach provides developers with clear expectations, allowing them to move forward with their applications confidently while minimising delays and uncertainties in the approval process.

NSW Planning Mapping System Effective as of 28th February 2025

Does Your Property Qualify?

The Low and Mid-Rise Housing Policy applies to specific sites within designated Local Government Areas (LGAs). However, not all properties within these LGAs automatically qualify—eligibility depends on whether they fall within the mapped areas.

Next Steps!

Navigating the Low and Mid-Rise Housing Policy can be complex, but with the right expertise, you can maximize your property's potential while ensuring compliance.

If you're considering developing or investing in property within these designated zones, it's crucial to understand the new regulations and how they may impact your plans. Working with planning professionals who specialize in NSW housing codes can provide you with tailored guidance and ensure a smooth approval process.

Additionally, staying informed about the final updates to the Complying Development Code is essential, as these will further clarify the specific development standards and requirements under the new policy.

Let’s Get Started!

With the Low and Mid-Rise Housing Policy opening up new opportunities, now is the time to explore how these changes can work in your favor. Whether you're a homeowner, investor, or developer, we’re here to help you navigate the process with confidence.

How We Can Assist You:

  1. Understand Your Property’s Potential – We’ll assess whether your site qualifies for dual occupancies, terraces, townhouses, or apartments under the new policy.
  2. Deliver Expert Design Solutions – Our team creates functional, stylish, and compliant designs that align with council requirements while maximizing your investment.
  3. Simplify the Approval Process – We ensure your plans meet all non-discretionary development standards, reducing delays and streamlining approvals.
  4. Turn Your Vision into Reality – From initial concept to construction-ready plans, we guide you every step of the way.

These reforms represent a major shift in NSW’s housing landscape, unlocking exciting possibilities for property owners and developers alike. Get in touch with us today, and let’s explore how we can make your project a success!