Parramatta rezoning plan to help fix housing supply crisis in NSW

One state has revealed plans to maximise a new light rail route and provide hundreds of housing opportunities.

The long-term housing supply crisis in NSW will be somewhat eased by rezoning part of Parramatta in Sydney’s west to provide homes for hundreds more people.

The state government says the rezoning of Parramatta’s Church St North precinct, which is being supported by the council, will make the most of the city’s new light rail route.

The rezoning of Parramatta’s Church St North precinct will make the most of the city’s new light rail route. Picture: Supplied via NCA NewsWire

The area north of the Parramatta River straddles the light rail line, which is expected to open next year.

Homes will be serviced by the new Fennell St and Prince Alfred Square light rail stations.

The government noted the NSW Productivity Commission found this type of project was more cost-effective than greenfield housing.

Homes will be serviced by the new Fennell St and Prince Alfred Square light rail stations. Picture: NCA NewsWire / Nikki Short

Nearby green space includes Belmore Park, Prince Alfred Square and River Foreshore Reserve.

Parramatta North Public School, Bayanami Public School, Macarthur Girls High School and Arthur Phillip High School are the public schools in the area.

The Premier says the housing crisis is one of the state’s biggest challenges. Picture: Supplied via NCA NewsWire

Premier Chris Minns acknowledged the housing crisis was one of the state’s biggest challenges.

“The construction of homes in Sydney has not kept up with population growth, and that is squeezing buyers, renters and owners,” he said in a statement on Thursday.

“More and more you will see the government link the construction of transport infrastructure with the construction of more homes.”

NSW Premier Chris Minns said the initiative came after the council approached the government. Picture: NCA NewsWire / Nikki Short

Mr Minns said it was important to take advantage of taxpayer investment in public transport infrastructure.

He later told reporters the government would take responsibility for an increase in density in the community, balanced with heritage legacy.

“I think in many respects this could be a template,” he said.

“We’re not going to be shy about the NSW government exercising their powers when we see communities that should have density and don’t have it.

“In this instance, it’s been done in a collaborative way with the council.”

Mr Minns said the government was taking advantage of taxpayer investment in public transport. Picture: Supplied via NCA NewsWire

Minister for Planning and Public Spaces Paul Scully said the precinct was well-positioned and equipped to accommodate more people who want to live closer to work, transport, schools, and the Parramatta CBD.

“We’re focused on increasing housing and affordability in great locations,” he said.

“This announcement ensures there will soon be hundreds of new homes available right on the doorstep of the Parramatta CBD.”