Today, the Department of Planning and Environment placed on exhibition a document to help accelerate housing delivery in NSW. This document suggests some changes to the low rise housing diversity code that impacts dual occupancies, manor houses and terraces but also brings in multi dwelling housing, residential flat buildings and shop top housing; all of which could be approved via CDC.
Firstly, some facts that have brought about the need for this change in code:
- 1 million more residents are expecting to call NSW home by 2034 (that’s 100,000 residents per year)
- Urban sprawl is becoming unsustainable for NSW (fewer than 20% of new dwellings were built within 10km of the CBD). Under the NSW Housing Accord (announced October 2022), NSW has committed to delivery of 314,000 homes by 2029
- Research from the Grattan institute (The House We’d Choose, 2011) found Sydney residents ranked “whether the house is detached” as the 5th most important variable when selecting a home. Having a big garden ranked 20th
- Housing delivery has traditionally been high density residential flat buildings facing along busy roads and low density homes on the fringes of Sydney. This document aims to deliver more well-located, diverse housing types following the principles of “transport oriented development” which has been a key feature of strategic planning in NSW for many years
Secondly, these are the definitions of some new terms:
- The document refers to six (6) city regions which this change in code will apply to. They are as follows:
- Lower Hunter and Greater Newcastle City
- Central Coast City
- Illawarra-Shoalhaven City
- Western Parkland City
- Central River City
- Eastern Harbour City
Refer to attached map showing this extends as far north as Nelson Bay, as far south as Long Beach (Batemans Bay) and as far west as the Blue Mountains
- The document on exhibition also uses the term “Station and Town Centre Precincts”. The definition of this is as follows-
Station and Town Centre Precincts
The station and town centres precincts are proposed to be:
- Within the Six Cities Region; and
- 800m walking distance of a heavy rail, metro or light rail station; or
- 800m walking distance of land zoned E2 Commercial Centre or SP5 Metropolitan Centre; or
- 800m walking distance of land zoned E1 Local Centre or MU1 Mixed use but only if the zone contains a wide range of frequently needed goods and services such a full line supermarkets, shops and restaurants.
- The Department is seeking input from Councils to determine which E1 and MU1 centres contain an appropriate level of goods, services and amenities to be included.
Now, here are the changes that are being proposed-
Under the banner of “Low-rise Housing”, there are proposed provisions for:
- multi dwelling housing (ie. town houses),
- multi dwelling housing (terraces),
- dual occupancies, and
- manor houses
- Multi dwelling housing and manor houses are proposed to be made permissible with consent in the R2 zone, if the lot is within a “Station and Town Centre Precinct”
- Manor houses will finally be given a large enough FSR to make them viable. They aim to lift the FSR to 80%. Currently it is only (25% of site area plus 150sqm) up to a maximum of 400sqm. To put things into perspective, the new requirement aims to allow Manor Houses on lots as small as 500sqm. At this very starting point, the manor house GFA is 500sqm x 0.8 = 400sqm which is the current absolute maximum
- Terraces are to only require 0.5 parking spaces per dwelling allowing more dwellings for compromised sites where Council aren’t allowing additional driveways to be granted. Currently Terraces require 1 space per dwelling. Similar parking provisions will be extended to Manor Houses.
- Terraces currently require a site area of 600sqm or if a Council’s LEP requires a greater area, then that area. The proposal is to reduce this 600sqm requirement to 500sqm. The maximum 60% FSR in the R2 zone is also proposed to be increased to 70%.
- To ensure good design outcomes are achieved, for development applications the consent authority must consider the “Low Rise Housing Diversity Design Guide for Development Applications”, currently this design guide is being set aside for Council’s who have their own DCP
- Low-Rise Housing maximum building height limits will be increasing to 9.5m for all forms of this housing type to “accommodate 2 storeys with the potential habitable roof, depending on the design”
- Dual occupancies are proposed to be permitted with consent in all low density residential zones across NSW. This will unlock areas like Liverpool Council LGA that only allow semi-detached housing (not dual occupancies) permitting CDC’s for dual occupancies to be lodged in the LGA. R2 zoned areas within the Strathfield Council LGA will be an interesting space to watch, as this LGA has always been protected from all forms of development intensification in the R2 zone.
- The site area requirement for a dual occupancy suggests >450sqm. Whether this is a change from the current 400sqm requirement in the Low Rise Housing Diversity Code and the need to comply with Council’s LEP is still required, is still unclear at this moment. Based on the need to push for more development, chances are that the requirements of Council will drop off.
- Landscaping appears to have loosened up only requiring either 20% for lots <600sqm and 25% for lots >600sqm (via CDC). In this regard, applications need to be careful triggering off On-site Detention (OSD) requirements, if the lot slopes to the rear and there is an attempt to only provide 20% landscaping (noting some Councils require a minimum 25% before OSD is triggered off). In this instance applications may be forced to increase the landscaping on engineering grounds or obtain an easement from the downstream neighbour.
Under the banner of “Mid-rise housing”, there are proposed provisions for:
- “Residential Flat Buildings” that are within “Station and Town Centre Precincts” will become permissible with consent in the R3 zone, even if the LEP suggests otherwise
- “Shop top housing” that is within “station and town centre precincts” will only be permissible if the LEP allows for it (ie. these changes won’t force it into a zone that currently prohibits it)
- The 800m distance stipulated above is broken into two (2) parts. “Inner Part”- within 400m and “Outer Part”- more than 400m but less than 800m. Different FSR and Height provisions apply to a lot in each “Part”
- There is an intention to bring in “Non-refusal standards” to allow buildings up to 21m high within the Inner Part of Station and Town Centre Precincts. In relation to frontage and site area requirements for RFB’s and Shop top Housing, there is an intention to remove these requirements via “non-refusal standards” to allow for development assessment on a case-by-case basis. The “Apartment Design Guide” will have some of it’s provisions amended to suit these new changes
- The documents on exhibition don’t appear to confirm if these controls apply to R4 zoned land or on other zoned land; aside from R3 medium density zoned land
Lastly, these are the summary tables provided:
Below are summary tables of what is proposed for Dual Occupancies, Multi Dwelling Housing, Terraces, Manor Houses, Shop Top Housing and RFB’s, and there is also commentary around subdivision-

This is the link to the Low and Mid Rise Housing Code changes on exhibition: https://www.planningportal.nsw.gov.au/draftplans/exhibition/explanation-intended-effect-changes-create-low-and-mid-rise-housing
This is the link to the “Six Cities Discussion Paper”: https://greatercities.au/strategic-planning/region-plans/six-cities-region
Clients who have any questions in relation to this, please feel free to contact our office: 0460 000 000 or email planning@es.au


