The NSW Low and Mid-Rise Housing rules: what they mean for buyers

The NSW Government's Low and Mid-Rise Housing policy, part of State Environmental Planning Policy (Housing) 2021, lets more homes be built in many established suburbs. If you're buying near a train station or town centre, the block next door may now be able to hold something much bigger than what's there today.

This guide summarises the rules as published by NSW Planning. Always check the official policy and map for a specific address.

What changed

• From 1 July 2024: dual occupancies (two homes on one lot) and semi-detached homes became permitted in the R2 Low Density Residential zone across NSW.
• From 28 February 2025: within 800 m walking distance of 171 nominated train stations, light rail stations and town centres in Greater Sydney, the Central Coast, the Lower Hunter and Newcastle, and Illawarra-Shoalhaven, more types of housing are allowed in residential zones.

What can be built near stations and town centres

R3 Medium Density and R4 High Density zones

• Within 400 m: apartment buildings up to 22 m high (about six storeys) with a floor space ratio of 2.2:1.
• 400 m to 800 m: apartment buildings up to 17.5 m high (about four to five storeys) with a floor space ratio of 1.5:1.
• Higher limits can apply where a share of the building is affordable housing.

R2 Low Density Residential zone (within 800 m)

• Terraces, townhouses (multi-dwelling housing), manor houses and small two-storey apartment buildings, generally up to 9.5 m high, subject to minimum site areas and widths.
• Dual occupancies remain allowed across all R2 land, generally on sites of 450 m² or more.

These are "non-refusal" standards: a council can't refuse a development application just because it meets these height and density limits, though it still assesses the rest of the proposal.

Where the rules don't apply

The mid-rise rules exclude land with a high risk from natural hazards such as bushfire and flood, land near dangerous goods pipelines or with high aircraft noise, and land containing a heritage item. Some council areas are excluded, and some councils have their own plans for particular centres that apply instead. Heritage conservation areas are generally still included, but local heritage controls still apply.

Why it matters when you buy

• Next door could change: a house beside you could become terraces or a four to six storey apartment building, affecting light, privacy, views, parking and years of construction.
• Your own block may be worth more to a developer if it's in the area, especially combined with neighbours.
• Distance matters: the rules use walking distance, so a property 750 m away in a straight line may be further on foot. Check the official map rather than relying on a ruler.

How to check a property

Look up the address on the NSW Planning Portal spatial viewer and the Low and Mid-Rise Housing indicative map, and confirm with the council or a town planner for a definite answer. See the NSW Planning Low and Mid-Rise Housing page.

WIBI checks every NSW address against the official town centres map and shows the nearest centre, the approximate distance band and what that could mean for the property and its neighbours, labelled for planner confirmation because the rules use walking distance.

Questions

Does the 800 m mean straight-line distance?

No. The policy uses walking distance. Straight-line distance is a quick guide only, so confirm with the official map, the council or a town planner.

Can my neighbour build six storeys?

Under these rules, only on R3 or R4 zoned land within 400 m of a nominated station or town centre, outside the excluded areas, and subject to a development application. In R2 zones the limit is generally 9.5 m. Other rules, such as the council's own local plan or the separate Transport Oriented Development precincts, can allow taller buildings in some places, so check the zoning and height limits for the specific lots.

Are heritage conservation areas excluded?

Land containing a heritage item is excluded. Heritage conservation areas are generally still included, but local heritage controls still apply to any development application.

Keep reading

• NSW strata report red flags: what to look for before you buy
• Special conditions in a NSW contract for sale: what to look for
• What a building and pest report doesn't tell you

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