New South Wales is bracing for rapid expansion, with the state’s population expected to soar past 10 million by 2041. This unprecedented growth has intensified the housing crisis, with demand outpacing supply, particularly in urban centres.
In response, the government has introduced an ambitious strategy to deliver high-density housing around major transport hubs, known as Transport Oriented Development (TOD).
For developers, navigating these new precincts will require a solid grasp of the shifting regulatory landscape, which includes streamlined approvals, updated zoning rules, and mandatory affordable housing contributions.
Here’s a closer look at what’s driving the program and what it means for your next development.
Reimagining urban living: The vision behind TOD
The TOD program aims to reshape how people live and commute by fostering walkable, mixed-use communities around public transport.
Crucially, the initiative will deliver more than 60,000 new homes across 39 precincts in two key streams.
In Accelerated Precincts, land within 1,200 metres of eight major transport hubs will be rezoned to deliver up to 47,800 new homes over the next 15 years.
Rezoning has already been completed in Bankstown, Bella Vista, Crows Nest, Homebush, Hornsby, Kellyville, and Macquarie Park, with Bays West slated for early this year.
Mid-Rise Housing Precincts will see new planning controls applied within 400 metres of 31 additional transport hubs, including Marrickville Station, Newcastle Interchange, North Strathfield Metro Station, and North Wollongong Station.
Opened for development applications in April last year, these precincts have the potential to deliver housing for up to 138,000 homes over 15 years.
Opportunities and challenges
For those considering developing within TOD precincts, understanding the regulatory landscape is critical to unlocking the full potential of these sites.
Here are some key takeaways:
Rezoning changes: New zoning rules will allow for residential flat buildings in residential zones, shop-top housing in commercial zones, and increased building heights of 22–24 metres. Developments must also meet a minimum lot width of 21 metres.
Streamlined approvals: Developments exceeding a $60 million Capital Investment Value in the eight priority precincts qualify as State Significant Developments (SSD), granting access to accelerated approvals until November 2027.
Affordable housing contributions: Developers must contribute a minimum of 2% of the development value toward affordable housing for developments over 2,000 square metres.
Infrastructure investment: To support increased density, the government has committed $520 million toward public spaces, roads, and community facilities within TOD precincts.
Market potential: With prime locations around transport hubs, TOD precincts offer high accessibility and foot traffic. These factors could lead to strong demand for residential, retail, and commercial spaces, supporting steady rental yields and long-term capital growth.
For more information, visit the NSW Government Planning website.
