Planning reforms to open more doors for buyers
The New South Wales government has announced plans to unlock 112,000 homes over the next five years with new low and mid-rise planning reforms.
The reforms ease restrictions to allow the development of dual-occupancies, terraces, townhouses and residential flat buildings within 800 metres or a 10-minute walk around 171 town centres and stations. The changes will apply to metropolitan Sydney, the Central Coast, Illawarra-Shoalhaven and Hunter regions.
Benefits for buyers
By increasing housing supply, the reforms aim to improve affordability and provide greater choice, particularly for first home buyers, young families and downsizers.
Increased supply is likely to moderate price pressures. With more homes available in well-connected areas, buyers will have a broader range of properties to choose from, potentially reducing competition in certain segments of the market.
Additionally, the focus on medium-density housing addresses the ‘missing middle’ between high-rise developments and detached homes, allowing for a more diverse housing mix and greater choice for buyers with varied budgets.
The total number of private sector apartments, units, townhouses and terraces approved in NSW in 2024 was 6.2% lower than the previous year, according to the Australian Bureau of Statistics. As the graph below shows, apartment approvals have trended downwards since the last peak in 2021. These new reforms aim to correct that, offering higher-density housing in well-located neighbourhoods.
Potential concerns
However, these reforms are not without potential drawbacks. Rezoning can significantly alter the character of existing neighbourhoods, raising concerns among residents about potential overdevelopment and loss of local identity.
In Mosman, for example, the local council has flagged the reforms as “clumsy”. “Mosman Council is deeply concerned about the impact of this density on traffic, local amenity and the liveability of the Mosman Village, noting that no major infrastructure has been announced to match this proposed growth,” said Mosman Mayor Ann Marie Kimber.
Another concern is the potential for overpopulation in certain locations. The reforms, while designed to improve access to housing, could also lead to increased density in already populated areas, and changes to infrastructure may not keep pace.
Looking ahead
Despite these challenges, the planning reforms mark a positive step towards addressing NSW’s housing crisis, with the key takeaway being that more homes mean more opportunities.
Buyers will need to stay informed and adaptable to take advantage of the changes.
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