What the NSW Low and Mid-Rise Housing Reforms Mean for Your Property
If you own a home on the Upper North Shore, there is a good chance recent changes to NSW planning rules have quietly changed what can be built on your land, and what your property could be worth to the right buyer.
The NSW Government’s Low and Mid-Rise (LMR) Housing Policy is one of the biggest rezoning changes the state has made in decades. It is designed to deliver around 112,000 new homes across Sydney and surrounding regions by allowing more housing types, such as duplexes, townhouses, terraces and small apartment buildings, in areas that were previously limited to single houses.
Here is what it means in plain English.
The changes in a nutshell
The reforms came in two stages.
Stage 1 (from July 2024): Duplexes (two homes on one block) became allowed in every low density residential (R2) zone across NSW. If your block is roughly 450 square metres or more with at least 12 metres of street frontage, a duplex may now be an option where previously only a single house was permitted.
Stage 2 (from February 2025): Within 800 metres walking distance of 171 nominated town centres and train, metro and light rail stations, the rules go further. Townhouses, terraces and low-rise apartment buildings are now permitted on eligible residential blocks, even in traditional single-house streets.
Locally, this includes centres and stations across the Hornsby Shire and Upper North Shore, such as Hornsby, Asquith and surrounding areas. The catchment is measured by walking distance, not a straight line on a map, so eligibility comes down to your exact address.
Why councils can no longer simply say no
The most significant part of the reform is something called non-refusal standards. The State Government has set its own limits for building size, height and block dimensions, and where a proposal meets those standards, the council cannot refuse it just because it exceeds the old local rules.
Councils still assess things like design quality, overshadowing, trees, traffic and streetscape character. But the days of a blanket “no” to a duplex, townhouse or small apartment project on an eligible block are largely over.
What can now be built, simply
The exact potential depends on your zoning, block size, frontage and how close you are to a nominated centre or station. As a rough guide within an LMR area:
- Duplexes: blocks of 450 sqm or more with 12 m frontage
- Townhouses: blocks of 600 sqm or more with 12 m frontage
- Terraces: blocks of 500 sqm or more with 18 m frontage
- Low-rise apartments (up to about 3 storeys): blocks of 500 sqm or more in low density zones
- Mid-rise apartments (up to 6 storeys): medium and high density blocks within 400 m of a station or town centre
Blocks closer to the station (within 400 m) generally qualify for larger buildings than those in the 400 to 800 m ring.
What this means for homeowners
For many owners in LMR areas, the land under your house is now worth more than the house on top of it. Practically, this can mean:
- Increased developer interest. Blocks that qualify, particularly larger blocks or those close to a station, are attracting attention from builders and developers, often at prices above standard home values.
- More options if you sell. A property marketed with its development potential clearly identified typically reaches a wider pool of buyers.
- Options if you stay. Some owners are choosing to develop themselves, such as building a duplex to keep one and sell one, or partnering with neighbours to combine blocks.
- Faster approvals for some projects. The Government’s Pattern Book scheme offers pre-approved townhouse and terrace designs that can be approved in as little as 10 business days, compared with months for a standard application.
Not every property qualifies
Some land is excluded, including listed heritage items, bushfire-prone land and certain flood-affected land. Properties in heritage conservation areas are still eligible, but proposals there go through fuller council assessment. Several councils, including Hornsby, Ku-ring-gai and others, have publicly raised concerns about the reforms, which can mean slower approvals in some areas, but the rules themselves remain in force.
How to find out where you stand
Eligibility comes down to the specifics of your property: zoning, block size, frontage, walking distance to the nearest nominated centre, and any overlays affecting the land. These details are not always obvious from a map.
If you would like to know whether your property sits within an LMR area and what that could mean for its value, Cass Property offers a free, no-obligation assessment. As a local, independent agency based in Hornsby, we know these streets, we track the buyers and developers active in this market, and we can give you a straight answer on what the reforms mean for your home.
Call us or email contact@cassproperty.com.au to arrange your free LMR property assessment.
This article is general information only and is not legal, financial or planning advice. Planning rules are subject to change and eligibility depends on the specific circumstances of each property. Owners should seek independent professional advice before making any decisions.