NSW Government Housing Reforms

The NSW Government is addressing the housing shortage through planning reforms that have affected the permissibility, built form scale and approval processes of housing across NSW. Further changes aim to increase affordable housing. Some of these reforms affect the North Sydney local government area (LGA).

For the latest information visitNSW Government housing reforms – North Sydney Council

1. TRANSPORT ORIENTED DEVELOPMENT (TOD) PROGRAM

The Transport Oriented Development (TOD) program focuses on delivering more housing near metro and rail stations. This is so more people can live close to transport, jobs and services. There are two parts to the program:

• TOD Accelerated Precincts: Crows Nest is one of eight precincts in the metropolitan area that have been subject to a state-led design and rezoning process
• Amending State Environmental Planning Policy (Housing) – the ‘TOD SEPP’, to enable higher-density housing within 400m of 37 other station precincts (these changes do not apply to the North Sydney LGA)

Crows Nest state-led rezoning

On 27 November 2024, the NSW Government rezoned land around the Crows Nest TOD precinct. The state-led rezoning provides:

• capacity for 5,900 new homes (in addition to the 3,200 already rezoned under the previous St Leonards and Crows Nest 2036 Plan)
• capacity for approximately 2,500 new jobs
• a minimum of 3% affordable housing in all new residential development and between 5% and 18% for key sites
• floor space ratios (FSRs) of up to 20:1
• a range of building heights from 6 up to 62 storeys

Tall, mixed-use and commercial towers will be concentrated along the Pacific Highway from St Leonards Station through to the Five Ways intersection at Crows Nest. A 62-storey tower will be located on the Royal North Shore Hospital site in Willoughby local government area. 18-storey towers are now permissible along Clarke Street in front of Hume Street Park in Crows Nest Village.

The Crows Nest TOD precinct extends west to Lithgow Street, River Road and Gillies Street in Wollstonecraft. This area will support a mix of 6 to 16-storey apartment buildings.

A potential new open space has been identified for the corner of Christie and Oxley Street.

Council submissions

You can read Council’s submission in response to the original proposals exhibited between July and August 2024.

Council staff are currently working through the details of post-exhibition changes that have been made to North Sydney’s planning controls. We will provide more information to help you understand how the changes may affect you in the coming weeks.

You can also read Council's previous correspondence with the Department of Planning regarding a mechanism to fund essential community infrastructure for the Crows Nest TOD precinct submission and the Department's response.

As it becomes available, further information will be shared in the Latest news section of Council’s website.

2. LOW AND MID-RISE HOUSING REFORMS

In parallel with the TOD Program, the State Government also released the low and mid-rise housing reforms on 28 February 2025. The reforms allow additional forms of low and mid-rise housing to be permitted in identified areas across NSW.

‘Low-rise housing’ is generally 1–2 storeys and includes dual occupancies (2 dwellings on the same lot), terraces, townhouses and low-rise apartment buildings (manor houses). It does not include freestanding houses.

‘Mid-rise housing’ is generally 3–6 storey apartment buildings.

The low and mid-rise housing reforms increase development capacity on all land located within proximity of a “station or town centre precinct” which encompasses the following land:

• within 800m walking distance of a heavy rail, metro or light rail station (including Crows Nest, Milsons Point, St Leonards, Victoria Cross, Waverton and Wollstonecraft stations); or
• within 800m walking distance of a “Town Centre” (including Cremorne and Neutral Bay town centres)

You can see the indicative areas affected by the low and mid-rise housing reforms on the State Government’s Low and Mid-Rise Housing Policy Indicative Map.

Within these affected areas, land is excluded if it is:

• bushfire prone; and/or
• contains a heritage item; and/or
• is within the Crows Nest Transport Oriented Development precinct

The low and mid-rise reforms apply to heritage conservation areas.

The low and mid-rise reforms prevail over Council’s local controls with the most significant changes being:

• permitting manor houses and multi-dwelling housing within the R2 Low Density Residential zone; and
• permitting residential flat buildings and shop top housing on land zoned R2 Low Density Residential and R3 Medium Density Residential

which are currently prohibited under the North Sydney Local Environmental Plan 2013.

The reforms allow:

• dual occupancies of up to 9.5m (current height limit of 8.5m) and floor space ratio (FSR) of 0.65:1 on land in a residential zone;
• multi dwelling housing, multi dwelling housing (terraces) and attached dwellings of up to 9.5m and a FSR of 0.7:1 on land in a residential zone;
• residential flat buildings within 400m walking distance of a station or Town Centre on land zoned R3 Medium Density Residential or R4 High Density Residential of up to 22m (6 storeys);
• shop top housing on land zoned R3 or R4 of up to 24m (6 storeys);
• residential flat buildings and shop top housing within 400m-800m walking distance of a station or Town Centre on land zoned R3 and R4 of up to 17.5m (4 storeys) and FSR of 1.5:1;
• residential flat buildings and shop top housing on land zoned R2 of up to 9.5m and a FSR of 0.8:1; and
• residential flat buildings and shop top housing within 400m walking distance of a station or Town Centre on land zoned R3 or R4 of up to a FSR of 2.2:1 and height of 22m (for a residential flat building) or 24m (for shop top housing)

Council staff are working through the details of the reforms made available by the State Government. We will provide more updates in the coming weeks.

For more information, please see the Department of Planning, Housing and Infrastructure's webpage about its Low and Mid-Rise Housing Policy.

3. Community Information Evening

Council arranged a Community Information evening so that Council staff could provide an overview of the proposals and broadly how they may impact the North Sydney LGA. This event was ticketed but also recorded and made available on Council's website.

Click to view the recording.