Sydney Rezoning

The Controversial NSW Minns Govt Proposal To Address The Housing Shortage Threatens Sydney’s Heritage

In recent months, the proposal from the NSW Minns Government for extensive Sydney rezoning has caused significant controversy. This proposal aims to tackle the urgent need to increase housing supply across Sydney, as well as other regional cities as part of the Six Cities Vision.

According to the Government, the proposed changes will facilitate the construction of new homes near planned and existing public transport infrastructure. This strategic placement is intended to enable more people to reside within walking distance of essential amenities such as supermarkets, restaurants, and open spaces, while also providing convenient access to transportation for commuting and other travel needs. This approach stands in stark contrast to promoting urban sprawl, which typically necessitates significant investments in costly infrastructure.

While addressing the housing shortage is undoubtedly crucial, the speed with which this proposal has been developed and the short time line for implementation are concerning.

It is evident that these changes, the most significant changes ever proposed, will significantly transform Sydney’s character and landscape. Entire suburbs are set to be redefined,  as established homes will be demolished to give way to a skyline dominated by high and medium-rise developments.

Significant impacts are anticipated, including the following:

• a serious threat to Sydney’s heritage with the rezoning of established housing areas many of which include heritage listings and conservation areas
• heightened congestion and overcrowding of already strained amenities like schools and hospitals
• displacement challenges for residents living in these rezoned areas
• a significant reduction in green space, particularly on the north shore
• and notable effects on property prices in surrounding areas are among other potential consequences discussed later in this article

What are the reasons for the proposed NSW Government zoning changes?

In its proposal, the NSW Government claims that:

• Sydney is one of the least dense global cities. The current zoning makes it difficult to provide the diverse range of housing types needed to accommodate the growing population, demographics and housing preferences.
• Urban sprawl is expensive and unsustainable. There is an undersupply of new homes in parts of the city that have great transport options, convenient town centres and local amenities such as parks and beaches
• There is a lack of diversity of housing options to cater for different housing needs, preferences and life stages. The government believes there is the need for more well located mid rise housing, yet only 12 % of areas are zoned for medium density and 2% for high density.
  In addition most low density areas currently prohibit multi-dwelling housing such as townhouses, “manor houses” (small 2 storey apartment blocks) and dual occupancies. The government believes that all Low Density Residential zones should be able to accommodate dual occupancies, multi-dwelling housing, and manor houses.
• More homes are best placed in areas that are already well serviced by town centres and good public transport

The Sydney Rezoning Proposal Explained

The Transport Orientated Development Programme

Part 1 – Transport Oriented Development (TOD) Accelerated Precincts

Part 1 of the Sydney rezoning will focus on 8 accelerated precincts to create capacity for 60,000 new homes over 15 years.

Land within 1,200 metres of 8 rail and metro stations will be rezoned by the NSW Government to allow for more new and affordable homes.

These stations are:

Bankstown, Bays West, Bella Vista, Crows nest, Homebush, Hornsby, Kellyville and Macquarie Park

These locations were selected based on analysis by the government that these stations have capacity to support additional growth.

What type of housing will be permitted?  The new constructions will include low rise housing such as terraces and duplexes within the 1200 metre radius through to mid and high rise developments close to these identified stations.

The goal is to create around 60,000 new homes over 15 years. The objective is a 15% affordable housing target.

Part 2 – Transport Oriented Development SEPP

Part 2 of the Sydney rezoning (and of the Six Cities) will apply to a further 37 TOD Precincts that the NSW Government has identified as having the infrastructure capacity close to a transport station to support additional housing growth.

The planning controls apply within 400 meters of 37 stations to deliver more affordable and well located homes.

These have been nominated as:

Adamstown, Ashfield, Banksia, Belmore, Berala, Booragul, Canterbury, Cardiff, Cockel Cree,, Corrimal, Croydon, Dapto, Dulwich Hill, Gordon, Gosford, Hamilton, Killara, Kogarah, Kotara, Lakemba, Lidcombe, Lindfield, Marrickville, Morisset, Newcastle Interchange, North Strathfield metro, North Wollongong, Punchbowl, Rockdale, Roseville, St Marys metro, Teralba, Tuggerah, Turrella, Wiley Park, Woy Way, Wyong

The changes will allow residential apartment buildings to be built in all residential zones (R1, R2, R3 & R4) within 400 metres of these stations.

Residential apartment buildings and shop-top housing will also be permitted in local and commercial centres within 400 metres of these stations.

There will be a maximum building height of 21 metres (approximately 6 storeys), a floor space ration of 3:1, no minimum lot size or width and other proposed changes.

The NSW Government is developing a pattern book of endorsed housing designs for both low rise and mid rise buildings which will have access to an accelerated approval pathway.

What type of housing will be permitted?  This SEPP will increase the supply of mid-rise flat buildings up to 6 storeys within 400 metres of stations., including apartment buildings that contain shops on the ground floor.  A mandatory minimum 2% of affordable housing will apply for new developments.

Low and Mid-Rise Housing Policy

Stage 1 – Dual Occupancies. The first stage of this policy started on 1 July 2024. It permitted dual occupancies and semi-detached homes in the R2 low density residential zone across all of NSW.

Stage 2 – Encouraging low and mid rise housing. The second stage of the policy started on 28 February 2025. It introduced new planning controls to encourage more dual occupancies, terraces, townhouses, apartments and shop top housing to be built in low and mid-rise housing areas located across Greater Sydney.

The low and mid-rise housing areas are residential zones within 800 metres walking distance from nominated town centres and nominated train/light rail stations.  There are two zones within the 800 metres walking distance; 0-400m and 400-800m, the former allowing for highter density housing than the latter. The goal is to construct 112,000 homes over the next 5 years across NSW.

Refer to the Low and Mid -Rise Housing Policy Indicative Map

Implications of the proposed Sydney rezoning

Over the last 25 years, we have worked extensively in many of the areas targeted for this round of Sydney rezoning.  The Inner West and North Shore are home to some of the most charming, historic and in the case of the North Shore, green, areas of Sydney and the destruction of entire suburbs will have a lasting effect on the character of this city.

Some of the main implications resulting from the proposal include:

• the proposed Sydney rezoning changes will fundamentally reshape our city.  Countless heritage suburbs with cherished quality period homes that have stood the test of time will be transformed into a landscape dominated by medium and high density living.  These suburbs will literally be wiped out to be replaced by apartment complexes resulting in the greatest level of heritage destruction in NSW since the Heritage Act 1977 was introduced.
  The National Trust (NSW) estimates that the proposal will impact two-thirds of the heritage items listed in NSW.
• in addition to the destruction of Sydney suburbs, the track record of developers shoddy workmanship and defects is well documented.  According to a NSW report conducted by Building Commission NSW in 2023, 53 per cent of newly constructed buildings have had serious defects in common property.  Standards will need to be significantly improved, especially if the Government pursues its’ rush for approvals and construction completions. If not, more “Mascot Towers” disasters are likely to unfold.
• this period is likely to be particularly unsettling for existing residents, who are facing displacement from their homes and a significant period of upheaval.
• While we expect most residents will be well compensated for these changes, those displaced will require new accommodations.  With a shortage of existing homes both to buy and to rent, where will thousands of people relocate to?
• We believe the proposed Sydney rezoning will have a side effect of increasing the price of nearby homes that are located in the areas close to but well clear of these new rezoned areas.
• residents in areas adjacent to the rezoning will likely face falls in the value of their properties as the residential environment is changed from low rise to medium to high rise living
• the envisaged transformation will create numerous challenges that will affect these and surrounding areas for years to come.  The prolonged period of construction will cast neighbourhoods into disarray, create traffic congestion, and both air and noise pollution
• the removal of significant amounts of green space will contribute to the Urban Heat Island Effect, causing temperatures to rise. Habitats for native animals and birds will also be wiped out.
• despite the Government assessment of the capacity for increased populations in these areas, unless there is significant investment in amenities such as schools and health care, there will likely be supply shortfall in these facilities which are already stretched.
• little thought seems to have been put into planning for increased traffic congestion on already gridlocked roads. It seems that an assumption has been made that the increased population will be travelling on public transport rather than by car.

In Summary

While no one can dispute that there is a significant housing shortage in Sydney that needs to be addressed, the one size fits all proposed Sydney rezoning plans are set to destroy some of the city’s most charming, historic and beautiful suburbs.

The haste with which the plans have been put together and the speed with which they are to be implemented are unfortunate, and will most likely mean missed opportunities to properly plan for the changes these areas will face.  In addition, little thought seems to have been put into the many issues that will be faced by relocating residents and those living in the surrounding suburbs.

Full details of the NSW Government Planning Proposals can be found here