28 February 2025: New Duplex and Townhouse Regulations Set to Transform NSW Development

The New South Wales (NSW) Government has introduced significant changes to housing development rules, effective from this Friday the 28th February 2025. These reforms aim to provide more housing options near key areas like train stations and town centres. Here’s a detailed breakdown of what these changes mean, especially for those interested in building duplexes (dual occupancies) and other medium-density housing.

What's Changing?

Starting 28 February 2025, new planning rules will apply to residential zones within 800 metres (about a 10-minute walk) of selected train stations and town centres across regions including Greater Sydney, Central Coast, Lower Hunter, Newcastle, and Illawarra-Shoalhaven. These areas are now designated for low and mid-rise housing developments.

By expanding the scope of eligible zones, the government is promoting higher-density living in key locations, increasing the availability of housing close to transportation hubs. These changes aim to reduce urban sprawl and address housing shortages, offering better options for buyers and tenants alike.

Key Updates

1. Expanded Housing Types Allowed

  • Dual Occupancies (Duplexes): Two homes on a single lot. These are now easier to build in more residential zones, allowing property owners to maximise the value of their land by building two homes side by side.
  • Terraces and Townhouses: Attached homes sharing side walls, perfect for creating compact communities in urban areas.
  • Low-Rise Apartments: Buildings up to six stories. These will also be permitted in more zones, helping to meet the growing demand for apartment living in accessible areas.

These changes create more flexibility for property owners and developers, with fewer restrictions on the types of developments they can pursue.

NSW Planning Maps take effect this Friday, outlining new zoning and development regulations. Source: NSW Department of Planning.

2. Standardized Minimum Lot Sizes

To streamline the approval process and maintain consistency, the new regulations introduce standardised minimum lot sizes for different types of development:

  • Dual Occupancies: Minimum 450 square meters with a 12-meter frontage.
  • Terraces: Minimum 500 square meters with an 18-meter frontage.
  • Multi-Dwelling Housing (e.g., Townhouses): Minimum 600 square meters with a 15-meter frontage.
  • Residential Flat Buildings (Low-Rise Apartments): Minimum 500 square meters with a 12-meter frontage in certain zones.

This simplification ensures developers know exactly what’s expected and can confidently proceed with their applications, reducing delays and uncertainties during the approval process.

3. Simplified Approval Process

One of the biggest changes is the introduction of clear, non-negotiable standards for developments. If your proposed project meets these criteria, councils cannot reject your application based on those specific standards. This change is designed to make the approval process more straightforward and predictable, giving developers a clearer path to move forward.

This streamlining is aimed at addressing the housing crisis by removing unnecessary red tape and encouraging more projects to go ahead in key areas.

Why These Changes Matter

The NSW Government’s goal is to address housing shortages and affordability by promoting diverse housing options in well-connected areas. By allowing more types of homes to be built near transport and services, these reforms aim to create vibrant, accessible communities that cater to various lifestyles and needs. Developers will now have the ability to construct high-quality duplexes and townhouses in areas with high demand, increasing both supply and diversity of housing.

For homeowners and investors, these changes provide an opportunity to build more affordable, modern homes in key locations, whether for sale or rent.

How These Changes Benefit Developers

As a developer, the updated regulations will make it easier to build duplexes and townhouses without the delays and uncertainties of previous zoning rules. The simplification of lot sizes, streamlined approval processes, and expanded housing options mean you can quickly assess the viability of a project and move forward with confidence. Moreover, these areas are likely to see an increase in demand as more people seek housing close to amenities and public transport, offering great potential for long-term capital growth.

Next Steps

If you're considering developing or investing in property within these zones, it’s essential to familiarise yourself with the new rules and assess how they impact your plans. Consulting with planning professionals or local councils can provide personalised guidance tailored to your situation. It’s also important to keep track of the final updates to the Complying Development Code, which will provide further clarity on the specifics of development.

These reforms represent a significant shift in NSW's housing landscape, offering new opportunities for homeowners, developers, and communities alike.

For expert advice and assistance with your duplex development, contact Arkhaus Architects or review our services here.

For further details, visit the official NSW Government page on housing policy: NSW Housing Policy.

Stay informed and make the most of these upcoming changes to ensure your projects meet the new requirements and can proceed smoothly.