Skip to main content
03 Jan 2024

Sydney's Housing Supply to Increase with Proposed Planning Changes

Sydney's Housing Supply to Increase with Proposed Planning Changes

The City of Sydney Council has approved revisions to planning and development regulations aimed at promoting the construction of build-to-rent housing, family-friendly apartments, and sustainable, excellently designed buildings.

Lord Mayor Clover Moore stated that the proposed amendments to the Sydney Local Environment Plan 2012 address the evolving needs of the city and will facilitate the creation of additional space for housing and employment.

Moore explained, "The proposed changes to our local planning controls strike a balance between the demand for more housing and the future workplace, while safeguarding and enhancing the city's character, public spaces, and sustainability."

The proposed changes include incentives for build-to-rent housing in the central business district (CBD), embedded controls for Net Zero buildings, the promotion of increased tree coverage and green roofs, and streamlined processes for design excellence and major development applications. The goal is to support housing diversity and counteract the loss of smaller, more affordable dwellings due to redevelopment.

Under the proposed changes, developers would be granted an additional 20% to 75% of floor space for build-to-rent projects, both conversions and new constructions, depending on the location of the site. These provisions would apply to applications submitted within five years after the formal approval of the changes.

Moore emphasized the success of build-to-rent projects in addressing the housing crisis and providing stable accommodations for renters. These developments not only increase rental stock in central Sydney but also have high occupancy rates, contributing to inner-city vibrancy and avoiding situations where newly built apartments remain vacant for speculative purposes.

The City of Sydney made these proposed changes in response to the decreased demand for non-premium office space following the COVID-19 pandemic, with current vacancy rates standing at approximately 14%.

Furthermore, developers will have access to 20% more floor space for co-living accommodations, intended to stimulate the availability of housing for students and low-income workers.

The proposed changes also prioritize the creation of family-friendly housing by reducing the number of permitted two-bedroom apartments in residential developments while increasing the minimum number of units with three bedrooms or more.

To encourage sustainable buildings, the proposed changes introduce height incentives for structures that incorporate green roofs. Developers will be incentivized to include lifts and stairs for roof access, shade structures, accessible bathrooms, and kitchen facilities to enhance the utilization of communal and social spaces on top of residential buildings.

The draft changes will now undergo review by the New South Wales Department of Planning and Environment for a gateway determination.

Loading

SIGN UP TO RECEIVE OUR NEWSLETTER & FURTHER UPDATES ABOUT THE SHOW

As an anti-spam measure, please type the characters you see in the image (case sensitive).