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What is the Transport Oriented Development Program?
The Minns Government has introduced the TOD Program, comprising two stages, aimed at creating sustainable and connected cities now and for future generations.
In essence, this program revolves around the rezoning of existing and future transport precincts, encouraging higher-density development in order to alleviate the current housing crisis and meet the goals of the National Housing Accord.
The first stage of the TOD planning reforms has now commenced, with new planning controls introduced through the State Environmental Planning Policy (Housing) 2021.
Accelerated Precincts
Part 1 of the Program will focus on 8 accelerated precincts to create infrastructure and capacity for 47,800 new homes over 15 years. Land within 1,200 metres of 8 rail and metro stations will be rezoned by the NSW Government to allow for more new and affordable homes.
FIRST STAGE
- Bankstown
- Bays West
- Bella Vista
- Crows Nest
- Homebush
- Hornsby
- Kellyville
- Macquarie Park
What will happen at these Accelerated Precincts?
Master planning for each precinct; supported by technical studies, to determine boundaries, and opportunities for new housing within 1,200m from these stations.
Faster approvals; projects exceeding $60m will trigger a new State Significant Development assessment pathway, with the intention to be in government hands for no longer than 90 days.
- Development Approvals will be time-limited for 2 years, supporting faster housing delivery within the Accord period
- Projects less than $60m will be assessed by the respective local Councils
Affordable Housing is to make up to 15% of homes in the 8 Precincts. These will benefit from increased height and FSR planning controls. The exact proportion will be subject to the relevant master plan document.
$520M Infrastructure Upgrades; commitment from NSW Govt to cover road upgrades, active transport and open spaces
Fast Tracked Design Excellence; the NSW Govt. will offer developers of high and mid rise developments with the opportunity to select from a list of architects approved by the NSW Govt. bypassing the requirement to run a design competition
State Environmental Planning Policy (SEPP)
Second Stage
From April 2024, a new Transport Oriented Development State Environmental Planning Policy (SEPP) will amend planning controls within 400m of 31 well-located metro and rail stations. This will promote the development of new and affordable housing within walking distance of public transport.
- This is anticipated to create capacity for 138,000 new homes over the next 15 years. The affordable housing contribution will gradually increase over time to make sure essential workers like health workers, teachers and hospitality workers can live closer to work.
- The new planning changes will also apply to heritage conservation areas, however, a merit based assessment will be conducted based on relevant heritage controls.
In addition, the NSW Govt. is developing a pattern book of endorsed housing designs which will provide accelerated approval for builders who choose to adopt these. First stage of this to be available in early 2025.
Where will the Transport Oriented Development SEPP Apply?
Inner West |
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Western Sydney |
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Southern Sydney |
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Upper North Shore |
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Illawarra Region |
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Central Coast |
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Greater Newcastle Area |
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Lake Macquarie |
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New Planning Controls
AS OF 29TH APRIL 2024
Permissability: Apartments / Shop Top Housing in local and commercial centres (E1 and E2) within 400 m of identified stations.
Building Height & Floor Space Ratio: Maximum building height of 22m for residential flat buildings, and a maximum of 24m for buildings containing shop top housing
Floor space ratio (FSR): Maximum FSR of 2:5:1, allowing for buildings of up to six storeys, whilst establishing guidelines to ensure compliance with landscaping, setback, privacy, and open space standards are met.
Lot size and width: Minimum lot width of 21m and no minimum lot size.
Street frontages: The inclusion of a clause that pertains to both local and commercial centers, requiring consideration of active street frontages of ground-floor buildings.
Affordable housing: Mandatory minimum 2% affordable housing contribution for all new developments.
In-fill affordable housing provisions set out in the Housing SEPP 2021 will also continue to apply in the SEPP locations.
In addition to the anticipated planning uplift brought upon by the TOD SEPP for the above rail and metro stations, the Special Entertainment Precinct (SEP) framework may be applicable to the 39 precincts, subject to local council approvals.
This has the potential to deliver an influx of new vibrant local destinations, enhancing local nightlife for residents supported by adequate and reliable transport on the back of the successful delivery of the Enmore Road SEP (Inner West Council) which allowed participation venues later trading hours.
What impact will TOD SEPP have?
Key Findings
- Estimated New Dwellings Across the 31 Stations: 137,072 which is relatively consistent with NSW Govts. estimate of 138,000
- Within the Sydney Metropolitan Area a total of 86,183 new dwellings is forecasted. This can be broken down as follows:
- Western Sydney: 19,054
- Inner West: 31,505 new dwellings
- South Sydney: 19,263
- Upper North Shore 16,361
- Even stations with extensive heritage conservation areas nearby, such as Roseville, Killara & Croydon could still deliver thousands of new dwellings on unconstrained properties with the new planning controls
Conclusion
Sydney is undeniably facing a housing crisis, a complex issue that we have all felt. Legislative and planning reforms aimed at promoting higher density housing represent a portion of the multifaceted solution that is required to stimulate our housing supply.
However, this is just one piece of the puzzle. Other critical obstacles include financing and capital constraints, difficulties in securing labour, and necessary building reforms and regulations. Despite the hurdles left to overcome, we recognise that the intentions behind these bold planning reforms are commendable.
The team at RWC is closely following these planning reforms unfold. We’re here to share our expertise with those of you looking to discover the possibilities for your property. Whether you’re curious about the implications of these changes or ready to explore your options, we’re here to guide you every step of the way.
Peter Vines
Managing Director
0449 857 100
Victor Sheu
Director
0412 301 582
Jayky Wu
Commercial Property Analyst
0402 603 540