NSW Government figures show where developers are cashing in on density changes for 170,000 homes

New figures have revealed locations where developers are slowly beginning to cash in on increased height limits allowed through contentious NSW planning reforms.

A major overhaul of NSW planning laws aimed at supercharging the construction of 170,000 new homes has resulted in just a handful of development proposals lodged to local councils since the changes came into force this year.

Figures released by the NSW Planning Department have revealed parts of the Central Coast and Sydney’s north shore are among locations where developers are slowly beginning to cash in on increased height limits allowed through the government’s “transport-oriented development” (TOD) housing reforms.

The new controls allow for six-storey apartment blocks within a 400m radius of 37 train stations across the state, though councils retain the ability to assess and reject applications involving heritage items.

Planning Department figures show just 14 development applications have been submitted in areas earmarked for increased density since the planning reforms came into force in May.

Despite the low uptake, the state’s planning minister says he is happy with the uptake of the new housing reform changes and is confident more applications will be lodged to councils soon.

NSW Planning Minister Paul Scully.

In May, four applications were lodged within 400m of train stations in Killara, Lindfield and Wyong, and in June two applications were submitted in Wyong and Kotara.

In July five applications were lodged in Kotara, Teralba, Lidcombe, Gordon and Roseville and in August, two applications were lodged at Teralba and Adamstown.

Planning Minister Paul Scully said the level of interest from developers was “great to see” and that councils “have indicated that they expect to see more development applications for TOD locations in early 2025”.

A concept image of a new development in Lindfield that falls within the TOD housing controls.

“This timeline is consistent with the department’s expectations and experience with other housing reforms, but it is also encouraging to see some interest earlier than expected,” he said.

Ku-ring-gai Council – which has actively opposed the new housing reforms and is fighting the increased density rules in court – in a statement said it was aware of one development application that falls in line with new housing density code.

The development would involve the construction of a seven-storey unit complex with 38 apartments at 4 and 4A Beaconsfield Pde in Lindfield.

A council spokeswoman said a five-storey apartment building with 22 units was previously approved at the site in 2023 – but the new application sought to use the transport-oriented development controls to increase the height to seven storeys.

A concept image of the seven storey building (right) proposed for 350 Illawarra Rd site (left) at Marrickville.

Other development proposals in Sydney that fall within the new housing code include a seven-storey building with 17 units at 350 Illawarra Rd at Marrickville which development plans stated would be permitted under the housing reforms.

Mr Scully said the level of developer interest in the new controls to date might have been impacted by a motion to parliament by the NSW Opposition that was designed to overturn the planning reforms.

The motion was defeated in parliament on August 14 with support from the crossbench.

NSW Opposition Planning spokesman Scott Farlow said the government’s reforms had lacked adequate community consultation and “denied communities” the opportunity to design how new housing is accommodated in their areas.

A concept image of the development at Lindfield.

“Communities are best placed to determine where development should go in their communities and they should be given the opportunity to design how they will meet their housing targets to suit their needs,” he said.

The department figures come as Australian Bureau of Statistics data showed approvals for new homes and apartments in NSW fell by 11.5 per cent in August compared with July.

Housing experts say rising construction costs and labour shortages have led to the decline – further endangering the goal of building 1.2 million extra homes across Australia by 2029.

In NSW, the transport oriented development housing reforms have a goal of delivering 170,000 homes over the next 15 years.

The maximum number of homes expected to be delivered through the reforms include more than 10,000 dwellings in Banksia and Rockdale.

Planning records show no applications that fall within the increased density rules have been submitted in either Banksia or Rockdale since the planning reforms came into force.

Originally published as NSW Government figures show where developers are cashing in on density changes for 170,000 homes