More housing is set to be delivered nearby town centres and stations across New South Wales as the government in that state seeks to deliver 112,000 low and medium rise homes over five years.

But the changes represent a scaling back of the government’s previously announced policy for low and medium rise development that was announced around fifteen months ago.

(top image; low and mid-rise housing in Penrith. Image supplied by NSW Government.

The New South Wales Government has released the next stage of its policy surrounding low and medium rise development across the state.

Under the changes, planning controls will be amended to allow dual-occupancies, terraces, townhouses and residential flat buildings within 800 meters of 171 town centres and stations.

The 171 town centres and stations are spread across metropolitan Sydney, the Central Coast, Illawarra-Shoalhaven and Hunter regions.

The sites were selected on the basis of access to goods and services; public transport frequency and travel times; critical infrastructure capacity hazards and constraints; and local housing targets and the need to rebalance growth.

Several areas were excluded on account of their hazard profiles in terms of bushfires and floods. These include the local government areas of Blue Mountains, Hawkesbury and Wollondilly.

According to the government, the changes will deliver greater housing diversity and choice and will unlock medium density housing in and around community and transport hubs.

As this stand, the government says that delivery of this type of housing is being hampered by unduly strict planning controls.

Within Greater Sydney, for instance, only two of 33 councils allow terraces and townhouses in low-density (R2) zones.

Furthermore, residential apartment buildings are prohibited in 60 percent of all medium density (R3) zones.

Under the changes, in areas that are within 800m of the 171 stations and town centres:

• restrictions on developing terraces, townhouses and low-rise residential flat buildings will be removed on R1 and R2 zoned land (general residential and low-density residential), and
• the restriction on delivering medium rise residential flat buildings on R3 and R4 zoned land (medium and high density residential) will be removed.

Councils will still be able to assess important development conditions. These include parking, access to light and minimum frontages.

Whilst the policy will see an easing in planning controls, the current policy is less ambitious compared with a previous policy on low and medium rise housing that was exhibited fifteen months ago.

Changes compared with that original policy include:

• A reduction in the allowable density of development from a floor space ratio of 3 to 1 to only 2.2 to 1 in medium density areas and from 2 to 1 to 1.5 to 1 in low-rise areas.
• The new rules will no longer apply to either non-residential or employment zones.
• Application of the policy to a lower number of designated areas than what had been anticipated; and
• Exclusion of heritage sites so that the changes will not apply to sites which contain any heritage listed items.

(medium density housing in Newington. Image supplied by NSW Government)

Development industry lobby groups offered a mixed reaction to the announcement.

Stuart Ayres, CEO of Urban Development Institute of Australia NSW), said the reforms were ‘welcome and long overdue’ after more than a year of advocacy and consultation.

But he said that the policy represented a scaling back compared with the previously announced plans for low and mid-rise planning reforms.

“Today’s announcement is welcome and long overdue,” Ayres said.

“UDIA has consistently advocated to increase availability of medium density housing options in locations close to existing services and transport to help tackle a worsening housing supply crisis.”

“The Government is to be commended for taking on the challenge of tackling the missing middle in our housing market.

“While this policy will apply at 171 town centre and train stations, the final policy represents a significant scaling back from what was originally announced and its capacity to deliver 112,000 homes over five years must be in doubt.”

Urban Taskforce Australia CEO Tom Forrest is more scathing in his assessment.

Forrest said the announcement is a ‘missed opportunity’ in terms of effort to support housing growth near town centres and transport nodes.

“The policy has the right intent, but since its initial exhibition fifteen months ago, the ambition has been wound back,” Forrest said.

“Despite this, the housing yield predicted to be achieved over 5 years through this policy has not changed from that predicted when the draft was released.

“Given the changes, the state of the market, the difficulties with feasibility, the time it takes to consolidate land parcels and progress development applications through councils, the predictions that the policy will deliver 112,000 homes over the next 5 years are heroic.

“The early assessment from the property sector is that under this policy, which will come into effect at the end of this month, much of the so called “missing middle” is still missing.”

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