Lower North Shore LMR Policy – What It Means & How to Take Advantage of It
Understanding the NSW LMR Policy and How It Affects You
The NSW Government has implemented the Low and Mid-Rise Housing Policy (LMR Policy) and it is one of the most significant planning changes in recent years, applying to many hundreds of properties across a large swathe of the Lower North Shore.
The policy applies to a wide area covering key residential suburbs such as Mosman, Cremorne, Neutral Bay, Kirribilli, North Sydney, Waverton, Wollstonecraft, Crows Nest, St Leonards, Naremburn, Greenwich and Lane Cove.
While the main town centres are excluded because they are commercially zoned, have significant development density and also have significant amount of local heritage items, many surrounding properties have benefited from substantial uplift in planning controls and value. This has opened up major new opportunities for property owners in these areas.
What the LMR Policy Allows: Height, FSR, and Lot Size Changes
The LMR Policy introduces new height, floor space ratio (FSR) and lot size standards within an 800 metre walking catchment of transport hubs and town centres. The core development standards are outlined below:
For local property owners within 400 m of a town centre, the new LMR policy could mean a large uplift in value of their properties. Those within 400 and 800 m from a town centre can still benefit from substantial uplift but individual circumstances need to be investigated.
How Property Owners Can Benefit from the LMR Policy
If your property is in an LMR area the increased value of your property will result from its increased development potential. In simple terms, you can now get approval to put more residential floor space on the property and that’s of value to developers.
To get the most financial benefit from your property it’s essential to understand how developers assess properties for development and what your property’s maximum development potential could be. That will give you an understanding of:
What the maximum pricing could be.
How not to be taken advantage of by developers.
How to deal with neighbours if you need to cooperate with them.
When you are negotiating via an agent, having an independent view of how much money you should receive.
You also need to understand the process required to receive the maximum amount because without understanding the process you can’t manage your position to maximise your return.
Additionally, you need to understand developer terms and conditions so you can negotiate to minimise your risk. Remember, developers are expert at negotiating not only prices but also sale terms that are favourable to them. Getting the terms right will be the difference between a good deal and a bad deal for you.
Remember that your best leverage comes from being well prepared and knowing how to effectively manage interest from competing developers. You need to have a clear logical strategy to sensibly manage the process of achieving the maximum price on the best terms.
Expert Guidance on Maximising Your Property’s Value Under the LMR Policy
We’ve provided strategic advice to landowners across the Lower North Shore, including those with properties benefitting from the Low and Mid-Rise Housing Policy and the Transport Oriented Development (TOD) reforms.
Individual property owners and groups of neighbours are contacting us regularly to get a clear, independent understanding of:
The change in their property potential and value.
How to take advantage of the new development potential.
How to structure their next steps to maximise their outcome.
As an example, we achieved a 32% increase in the price paid by a developer to one of our clients in St Leonards. The client was referred to Augusta Advisors by their accountant after the client had commenced negotiations with the developer. The client was very happy with our analysis, strategy and negotiation management that generated this large uplift in price.
If you’d like to understand what the new policy means for your land and how to make the most of it, get in touch for an expert, independent conversation.