NSW Low & Mid-Rise Housing Reforms: The Game-Changer We’ve All Been Waiting For
Let's not sugarcoat it - this is the biggest shake-up in planning policy we've seen in decades. The NSW Government has stepped up with a bold mid rise housing policy aimed at tackling the "missing middle" - the gap between single homes and high-rise towers - and in doing so, they've unlocked serious value for those sitting near transport hubs and town centres.
We're talking about a policy that could yield 400,000 new homes delivered over five years. For developers, investors, and owners in the right locations, this could be the moment to act.
What's the Low Mid Rise Housing Policy NSW All About?
The Low and Mid Rise Housing Reforms (via the Housing SEPP 2025) are the NSW Government's answer to housing supply constraints and affordability pressures. The focus? Getting more terraces, townhouses, residential flat buildings and 3–6 storey mid rise housing into areas where people actually want to live - close to transport, shops, and jobs.
This mid rise housing policy isn't theory. It's law. And it's rolling out right now across town centres and transport oriented development zones.
Key Dates You Need to Know
Stage 1 – July 1, 2024
Dual occupancies are now a matter of right in R2 Low Density zones across NSW (with a few exclusions).
Dual occupancies are now a matter of right in R2 residential zones across NSW (with a few exclusions). This stage opened up opportunities for semi detached homes and simple multi dwelling housing on residential zoned land.
Stage 2 – February 28, 2025
The big expansion through mid rise housing reforms. This opens the door to terraces, townhouses, manor houses, and buildings up to 6 storeys in specially mapped areas. The mapping is live on the NSW Planning Portal. If you’re inside the boundary, the game has changed for your land.
What Can You Build?
Low-Rise (1–2 storeys):
Duplexes, semis and dual occupancies
Townhouses and terraces
Manor houses (think: four-pack of apartments in a house-scale format)
Multi-dwelling housing in courtyard-style layouts
+ Low rise apartment buildings near rail stations
Mid-Rise (3–6 storeys):
Purpose-built apartment blocks
Shop-top housing with ground floor shops
Mixed-use buildings in town centres
All located within walking distance of services and infrastructure
This is the first time we've seen proper state support for that crucial mid rise housing product: not just a granny flat out the back, and not another 30-storey tower either.
Where Does the Mid Rise Housing Policy Apply?
171 centres across:
Greater Sydney
Central Coast
Illawarra-Shoalhaven
Hunter Region
The rule of thumb: within 800m of key town centres or public transport hubs. If your site falls inside the Spatial Viewer mapping, you’ve now got far more rights than you had a year ago.
The rule of thumb: within 800m of key town centres or transport hubs including rail stations and light rail station locations. If your site falls inside the Spatial Viewer mapping, you've now got far more rights than you had a year ago.
Popular locations include:
Paddington Town Centre
Double Bay and surrounding areas
Mona Vale Town Centre
Areas along South Head Road and New South Head Road, Rose Bay and surrounding areas
King Street, Crown Street, and Cleveland Street
Even areas in the Blue Mountains have been included where appropriate public transport service exists.
What's Out of the Mid Rise Housing Areas?
Some land remains off-limits - for good reason:
Bushfire prone land and flood prone land
Coastal wetlands and coastal vulnerability area
Land near gas pipelines or high aircraft noise
State and local heritage conservation areas
Transport oriented development (TOD) pilot precincts (different rules)
Areas with critical infrastructure capacity constraints
Don't worry—these areas are clearly mapped. And yes, heritage items still require merit assessment under the development control plan.
What Are the New Planning Controls?
The mid rise housing policy overrides local controls - unless the local controls are more generous.
Key Non Discretionary Development Standards Now Apply Statewide:
Maximum building height limits
Minimum floor space ratio (FSR)
Standardised minimum lot sizes
Landscaping and setbacks
Affordable housing incentives (bonus height and FSR)
Comply with these, and a council can’t knock you back just because their LEP says otherwise.
Affordable Housing Incentives
Want to go higher or add extra floor space? Offer affordable housing.
You’ll get:
FSR and building height bonuses
A simpler, faster development application pathway
Long-term rental obligations (typically 15–20 years)
This is a lever for developers wanting scale in mid rise housing areas while ticking the government's affordability box.
Local Council Response (Read: Resistance)
Some councils are pushing back. Ku-ring-gai, for example, has called out the 400m² minimum lot size for dual occupancy, saying it doesn’t align with their leafy suburb character. Others have sought pause mechanisms to delay rollouts.
But the NSW Government has made one thing clear: this is happening. Councils still play a role in merit assessment (think car parking, amenity, landscaping), but they can't block developments that meet the new non discretionary development standards.
How to Navigate It All
Here's how to get on the front foot with low and mid rise development:
Check if your site is mapped using the NSW Planning Portal or our Low and Mid-Rise Housing Policy map guide
Confirm zoning and overlays - not every R2 block will qualify
Understand the new standards - height, FSR, lot sizes
Identify any exclusions - heritage, bushfire prone, flooding, etc.
Assess the affordable housing uplift - what’s viable and what’s not
This is where experienced planners, certifiers, and designers become your best friends. Especially as the NSW Pattern Book is being rolled out to support consistent design outcomes (and council comfort levels).
The pattern book provides guidance for diverse housing options and housing types that complement existing buildings while delivering housing diversity in town centres.
Mid Rise Housing in Action
The opportunities created by this mid rise housing policy are already being realised across Sydney. In premium locations like Double Bay, we've seen development sites like 2-6 Cooper Street successfully sold, demonstrating the market appetite for mid rise housing opportunities.
Areas like Rose Bay are particularly well-positioned, with multiple development sites taking advantage of the new planning controls. The 17-23 Carlisle Street site shows how residential flat buildings can be developed within the maximum building height limits while delivering quality medium density housing.
Areas like Bondi, traditionally dominated by single dwellings, the mid rise housing reforms have opened up opportunities for multi dwelling housing projects like the recently sold 81 Anglesea Street development.
What Comes Next?
Watch these metrics:
DA volumes in newly unlocked areas
Uptake of affordable housing bonuses
Infrastructure delivery
Community feedback (and pushback)
This is the NSW Government's strongest move yet to fix housing supply without resorting to endless greenfield sprawl.
But the devil will be in the delivery—and in the design that ensures development complies with housing sepp provisions.
Final Word
The new Low & Mid-Rise policy is here. It’s ambitious. It’s complex. And for many, it’s a golden opportunity to unlock latent land value in places that were once deemed “too hard.”
Don’t sit back.
Map your site using the mid rise housing areas mapping
Run the feasibility
Contact us for expert advice on rise housing policy opportunities
Browse our current development sites to see mid rise housing opportunities in action
Because in this market, knowledge isn’t just power—it’s profit.
