Impact of the LMR Policy on the Inner West – What It Means & How to Take Advantage of It
Understanding the NSW LMR Policy and Its Impact on the Inner West
The NSW Government’s new Low and Mid-Rise Housing Policy (LMR Policy) represents one of the most significant planning changes in recent years and it’s set to reshape large areas across Sydney including the Inner West.
This transformative policy applies to numerous Inner West suburbs including Annandale, Ashfield, Croydon, Dulwich Hill, Enmore, Leichhardt, Lewisham, Lilyfield, Marrickville, Newtown, Petersham, St Peters and Stanmore.
Major commercial centres have been excluded due to existing high density zoning or heritage issues. However, many surrounding residential areas have now seen a marked uplift in planning controls and property value, creating new opportunities for homeowners in these areas.
What the LMR Policy Allows: Height, FSR and Lot Size Changes
The LMR Policy introduces new standards for building height, floor space ratio (FSR) and minimum lot sizes within 800 metres of designated town centres and public transport hubs. These planning changes are aimed at increasing housing diversity and density in accessible, well connected areas.
For properties located within 400 metres of a town centre, the potential uplift in development rights and therefore property value, is especially significant. Those within 400 to 800 metres can still benefit meaningfully, though outcomes will depend on individual property characteristics.
How Property Owners in the Inner West Can Benefit from LMR
If your property is located within an LMR affected area of the Inner West the value of your land may have increased significantly due to its increased development potential. In short, developers could now be willing to pay substantially more because these new planning controls permit additional development on your land.
To make the most of this opportunity it is essential that you understand:
Your property’s maximum development potential.
How developers assess land value and what they are willing to pay.
How to collaborate with neighbours if that is needed to unlock higher returns.
If you are negotiating through an agent, having independent advice about your property’s true worth to developers so you don’t undersell.
The process needed to maximise your return, including identifying and managing risks.
Terms and conditions are as important for you as price to get the best result. Developers are skilled negotiators about these as well as price. Knowing what terms to push for and how to structure the deal can make the difference between a good outcome and a great one.
Expert Advice on Navigating the LMR Policy in the Inner West
We have advised and are currently advising many property owners across Sydney on how to maximise their returns under the LMR and Transport Oriented Development (TOD) reforms. We can provide individual owners and groups of neighbours in the Inner West with a clear and independent understanding of:
The change in their development potential and pricing of their property.
How to capitalise on the new LMR planning rules.
The next steps to take, either individually or with neighbours.
A good example involved a client referred to Augusta Advisors by their accountant where we achieved a 32% increase in the price that had been offered by a developer by becoming involved at the right time with the right strategy. Needless to say, the client was very happy with the result.
If you own property in Annandale, Ashfield, Croydon, Dulwich Hill, Enmore, Leichhardt, Lewisham, Lilyfield, Marrickville, Newtown, Petersham, St Peters or Stanmore and want to understand what the LMR policy means for you, get in touch with Augusta Advisors for expert, independent advice.