NSW Low and Mid-Rise Housing Policy – The Key Details for Property Owners
The NSW Government's Low and Mid-Rise Housing Policy is set to boost housing supply by allowing a greater variety of homes in well connected locations. Stage 2 of the policy comes into effect on 28 February 2025 and will permit dual occupancies, terraces, townhouses, apartments and shop top housing in certain residential zones.
Key Features
Where it applies – Covers Greater Sydney, Central Coast, Lower Hunter, Newcastle and Illawarra-Shoalhaven. It applies to land within 800 metres of 171 town centres and train or light rail stations.
Development rules – Lot size, height limits, floor space ratio and parking are described below.
Where it doesn’t apply – Land with high bushfire or flood risk, heritage listed sites and some council areas, including Bathurst, Hawkesbury, Blue Mountains and Wollondilly.
The policy is expected to help deliver 112,000 new homes over five years, easing supply pressures and making housing more available. Full details are on the NSW Department of Planning website.
Development Rules
The policy introduces non-discretionary development standards to encourage the construction of low and mid-rise housing. These standards apply within the specified residential zones and are designed to provide clear guidelines for development.
Lot Size – Minimum lot sizes vary depending on the housing type:
Dual Occupancies: 450 square metres.
Multi-Dwelling Housing: 600 square metres.
Terraces: 500 square metres.
Residential Flat Buildings: 500 square metres in R1 and R2 zones; no minimum in R3 and R4 zones within 400 metres of a station or centre.
Height Limits – Maximum building heights are set to maintain neighbourhood character:
Dual Occupancies, Multi-Dwelling Housing and Terraces: 9.5 metres.
Residential Flat Buildings:
9.5 metres in R1 and R2 zones.
Up to 22 metres (approximately 6 storeys) in R3 and R4 zones within 400 metres of a station or centre.
Floor Space Ratio (FSR) – Defines the allowable building area relative to the lot size:
Dual Occupancies: 0.65:1.
Multi-Dwelling Housing and Terraces: 0.7:1.
Residential Flat Buildings:
0.8:1 in R1 and R2 zones.
Up to 2.2:1 in R3 and R4 zones within 400 metres of a station or centre.
Parking – Minimum off-street parking requirements are established to ensure adequate parking:
Dual Occupancies and Multi-Dwelling Housing: 1 space per dwelling.
Terraces: 0.5 spaces per dwelling.
Residential Flat Buildings: 0.5 spaces per dwelling.
These standards aim to provide clear guidelines for developers and ensure that new housing integrates well with existing communities.