Posted on February 23, 2025 by Thuy Pham and Liam Mulligan
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ALERT: Second Stage of Low and Mid-Rise Housing Policy – Low and Mid-rise Housing Areas
The much anticipated low and mid-rise housing reform, the delivery of a second stage to the Low and Mid-Rise Housing Policy (Policy), is anticipated to commence on 28 February 2025. The reform is the second stage of the NSW Government’s plan to promote ‘infill” developments around town centres and public transportation hubs. We previously wrote about this proposed reform here.
The first stage of the Policy commenced on 1 July 2024 by way of amendments to the State Environmental Planning Policy (Housing) 2021 (Housing SEPP). Those initial reforms permitted dual occupancies and semi-detached homes in the R2 low-density residential zone across all of NSW.
The second stage of the Policy will allow dual occupancies, terraces, townhouses, apartments, and shop top housing in low and mid-rise housing areas across the following regions:
- Greater Sydney
- Central Coast
- Lower Hunter and Newcastle
- Illawarra-Shoalhaven.
“Low and mid-rise housing areas” are residential zones within 800 metres walking distance from town centres and train/light rail stations. An indicative map of the 171 low and mid-rise housing areas has been released: Indicative Map. Among them, 9 are on the northern beaches. Ku-ring-gai and North Sydney each has 8 areas. 9 are in Central Coast. Inner West has 11 areas identified and Sutherland has 10.
However, certain lands are excluded from “low and mid-rise housing areas”, including:
- Transport Oriented Development areas mapped under Chapter 5 of the Housing SEPP;
- Land with a high risk from natural hazards like bushfire and floods
- Land located close to dangerous goods pipelines and high aircraft noise
- Land that contains a heritage item
- Sensitive coastal and rainforest lands
- All land within the Bathurst, Blue Mountains, Hawkesbury and Wollondilly Local Government Area due to bushfire and flood risks.
It is anticipated that the second stage of the Policy will also be part of the State Environmental Planning Policy (Housing) 2021 (Housing SEPP). The proposed amendments to the Housing SEPP have not been published at this time. However, a summary of key provisions, including the proposed changes to the planning controls is published here. It appears that the Policy would allow up to 6-storey residential flat buildings and shop top housings to be built in R3 and R4 zones within 400m from the train station or town centre.
The press release on the Policy can be found here: Low and Mid-Rise Housing Policy
To discuss this article please leave a comment below or contact Liam Mulligan on 8235 9715 or Thuy Pham on 8235 9731.
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