Entire inner west mapped for six-storey apartments

A sensitive NSW government analysis of its signature housing reform proposals says the entire inner west local government area would be zoned to allow six-storey apartments, in a dramatic reshaping of some of Sydney’s most affluent neighbourhoods.

But the same 12-page briefing document also reveals there is little chance the government’s push for increased density will help it reach the ambitious 378,000 National Housing Accord targets agreed to by Premier Chris Minns last year.

Documents reveal the inner west local government area is “well mapped” for more density.Credit: Steven Siewert

Prepared ahead of a December 14 meeting between Planning Minister Paul Scully, senior departmental figures and eight Sydney mayors, the document outlined a slew of previously confidential details about the reforms announced just a week earlier.

It detailed each pillar of the government’s proposed changes but also provided insights into how they would impact the inner west.

For areas up to 800 metres from transport hubs and town centres in medium-density zones and “appropriate employment zones”, mid-rise apartment blocks up to six storeys will be allowed.

“For the inner west, which is entirely mapped as ‘well located’, this will mean … that six-storey apartments will be possible across the LGA (even though some consolidation is required),” the document states.

Inner West Mayor Darcy Byrne says the concept is simplistic.Credit: Dion Georgopoulos

The detail goes beyond analysis done by Inner West Council staff, who in a critical report prepared ahead of a February 13 council meeting found the state government’s suite of reforms would affect 75-80 per cent of the LGA.

Inner West Mayor Darcy Byrne said the concept of allowing six-storey apartment blocks “in every single street is absurd, and we would fight hard against such a simplistic proposal. I don’t know if rezoning the whole of the inner west is just another bureaucrat’s thought bubble, but this contradicts public statements of the premier and the planning minister,” he said.

“Frustratingly, we are still waiting for them to provide dwelling targets. Once we have the dwelling numbers we will work through the best places to locate the new housing.”

Correspondence sent from Byrne to Scully last week, obtained by the Herald, says the council is eager to “engage directly with you in negotiation regarding your proposals”, as it urges the government to include several additional measures to tackle the housing crisis.

In response to questions from the Herald, Scully dismissed concerns the entire LGA would solely be comprised of mid-rise apartments. He also noted recent Homelessness NSW analysis showed a 20 per cent increase in people seeking homelessness services in the Inner West in the latest financial year.

“But the idea that the entire LGA will be reshaped to only include mid-rise apartment blocks is fanciful and designed to scaremonger,” he said. “It remains the council’s responsibility to assess a development based on a range of criteria including overshadowing, congestion, light, design and privacy, among other considerations.”

In early December, the government announced a suite of reforms to tackle the state’s housing crisis, including 39 development zones around transport hubs which would be subject to densification, and low-and-mid-rise uplift across Greater Sydney.

Eight “tier one” transport-orientated districts (TODs) will undergo massive uplift, while 31 smaller zones (tier two zones) around train stations between Newcastle and Wollongong will be subject to rezoning on a smaller scale.

Greens Balmain MP Kobi Shetty. Credit: Oscar Colman

Committee for Sydney planning policy manager Estelle Grech said while there was “a lot to like” about the government’s housing reforms “we need to take the time to get it right before automatically uplifting heights around all centres”.

Grech said much of the inner west was covered by the reforms because it was “already a relatively dense place”, but warned the government should work with the council to develop “place-based solutions” in key parts of the LGA.

“Not all town centres are created equal. We need to make sure they have the social infrastructure new residents need, including childcare, primary schools, open space, libraries and cultural centres, as well as frequent and reliable public transport,” she said.

“Instead of trying to do everything everywhere all at once, we should prioritise and start in the areas with the highest potential. It makes sense to start in the city’s east and work our way west in a clear and certain manner, allowing markets to mature over time.”

Greens MP for Balmain Kobi Shetty said the revelations showed the government had not properly informed the community about the scale of the proposed changes.

“These proposed changes could see wholesale rezoning of the inner west, with significant impacts on current and future residents,” she said. “Despite the impact of these proposed changes, the NSW Labor government has failed to adequately consult with local communities. As a result, I’ve had hundreds of local residents join public meetings to get the facts on these reforms and to understand how they can have their say.”

The potential extent of the government’s reforms in the inner west came as forecasts included in the briefing document showed the eight tier-one transport precincts would only contribute 15,802 dwellings by July 2029, the end of the accord period.

The accelerated transport precincts will be built in Bankstown, Bays West, Bella Vista, Crows Nest, Homebush, Hornsby, Kellyville and Macquarie Park, and are projected to contribute 147,000 dwellings over 15 years.

The Herald has previously revealed that fewer than 10 per cent of the 138,000 homes proposed under the so-called “tier two” zones will be built during the accord period. It means the two transport pillars of the government’s housing policies are only projected to contribute 26,402 dwellings by the end of the accord period. Taken with the department’s base assumption of 200,000 new dwellings being built over this period, the government is 150,798 dwellings short of the 378,000 necessary.

The government’s “missing middle” reforms are projected to contribute 112,000 homes by 2039, according to briefings given to councils.

Scully said the state’s ability to meet the National Housing Accord targets did not only depend on the TOD and low and mid-rise reforms, saying “they also rely on speed of approvals, additional infrastructure and improvement in the economy and other reforms the government will make over time”.

“We can’t afford to take a do-nothing approach – because it means we’ll go back to the problems of the last decade where young people are up and leaving because they can’t afford to buy or rent a home in Sydney,” he said.

The looming shortfall was compounded by recent housing data from the Australian Bureau of Statistics which showed approvals in NSW continued to fall, with 44,675 new apartment and standalone house approvals issued in the 12 months to January 2024, the lowest figure in the past decade.

Tom Forrest, chief executive of development peak body Urban Taskforce, said the figures painted a “dismal picture” for the state’s planning system, demonstrating the monumental task required by the government to reach the 76,000 dwellings required each year.