An overview of State Government new planning rules information released 28 February 2025
There has been so much news over the last year when it comes to housing supply and the much anticipated NSW Government Planning changes.
The time has finally come where we can share with you the housing reforms that were implemented on February 28th, 2025.
This date marked the introduction of the NSW Government’s Low and Mid-Rise Housing Policy. These planning reforms will see the planning permissibility boosted considerably across key transport hubs as well as across 171 suburbs in NSW.
These laws are designed to fast track low-rise and mid-rise housing across New South Wales, encouraging greater density in key areas, close to shopping centres, work, schools and transport.
This will see a number of low and mid-rise buildings now allowed in areas they had been banned. This will allow for greater construction of well-located, low and mid-rise homes in the form of townhouses, terraces and small apartment blocks.
Previous to the Low and Mid-Rise Housing Policy reforms, individual councils controlled and enforced their own regulations regarding zoning and what kinds of homes can be built in their area.
So what does this mean for you?
The opportunity for many property owners is significant. Previously disallowed small to medium development will now be permissible. The NSW government estimates that 112,000 new homes could be created across the Greater Sydney region, Hunter, Central Coast, and Illawarra- Shoalhaven regions.
Sites were selected considering the following criteria:
- Access to goods and services in the area
- Public transport frequencies and travel times
- Critical infrastructure capacity hazards and constraints
- Local housing targets and rebalancing growth
Details of the Government’s Low and Mid-Rise Housing Policy can be found here.
Some of the proposed changes include:
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- Dual occupancies (two separate homes on a single lot), such as duplexes, are allowed in all R2 low-density residential zones across all of NSW.
- Terraces, townhouses 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).
- Residential Flat Buildings near transport hubs and town centres will be permitted in R2 and R3 zones. This will mean more housing just a short 10-minute walk (800m) from transport hubs, shops and amenities. Height restrictions apply based on proximity to the town centre.
Map of the Suburbs Affected?
Access to the NSW Government’s Low and Mid-Rise Housing Policy Indicative Map can be found here. This map displays the indicative 171 suburbs and town centres outlined in the reform.
Official Media Release
Changes came into effect on Friday, February 28th. To view the NSW State Government Media Release in full, click here.