The NSW Government’s Low and Mid-Rise Housing Policy has officially arrived, bringing with it a wave of new development potential in the Illawarra-Shoalhaven region. While the policy promises exciting opportunities for increased housing diversity and density, the new regulations are undeniably complex. At Allen Price, we’re here to help you decipher the changes and capitalise on the potential they offer.
What is the Low and Mid-Rise Housing Policy?
The policy, implemented through the State Environmental Planning Policy (Housing) Amendment (Low and Mid Rise Housing) 2025, introduces a new Chapter 6 to the State Environmental Planning Policy (Housing) 2021. This chapter focuses on “Low and mid-rise housing” and is designed to encourage development in areas well-connected to essential services and public transport.
Why These Changes?
The NSW Government’s policy is driven by the need to create more diverse housing options in well-located areas. The selection criteria for these low and mid-rise housing areas are based on:
- Access to essential goods and services.
- Frequent and reliable public transport.
- Efficient travel times to major centres.
- Adequate infrastructure capacity.
- Consideration of hazards and constraints.
The extensive consultation process, including public exhibitions and engagement with councils, demonstrates a commitment to delivering outcomes that meet community expectations.
New Statutory Maps
The policy introduces the Town Centres Map and the Deferred Transport Oriented Development Areas Map. These maps are essential for determining which areas are subject to the new low and mid-rise housing development standards.
The areas within the Illawarra Shoalhaven region that are presented on this map are the following:
Corrimal
The Low and Mid-Rise Housing (LMR) Centre of Corrimal includes portions of Bertram Lane, Russell Street, Railway Street, Short Street, and Collins Street.
Fairy Meadow
The LMR Centre of Fairy Meadow includes portions of Anama Street, Bourke Street, Grafton Street, Guest Avenue, Elliotts Road, Daisy Street, Cambridge Avenue, Normal and Street.
Dapto
The LMR Centre of Dapto includes portions of Moonbara Street, Marshall Street, Bong Bong Road, Osbourne Street, Dapto Square Lane, and Mall Lane.
Warrawong
The LMR Centre of Warrawong includes portions of Cowper Street, Greene Street, Mowbray Lane, Turpin Avenue, Montgomery Avenue, Taurus Avenue, Northcliffe Drive, and Kings Street.
Warilla
The LMR Centre for Warilla includes portions of Veronica Street, Woolworths Avenue, Grove Circuit, Peterborough Avenue, and Shellharbour Road.
Shellharbour
The LMR Centre for Shellharbour includes portions of Lake Entrance Road, Benson Avenue, College Avenue, Cygnet Avenue, Minga Avenue, Burra Place, Moolawang Place, Benson Avenue, Lamerton Crescent, and Evelyn Court.
Albion Park
The LMR Centre for Albion Park includes portions of Webb Lane, Halket Lane, Terry Street, McGrath Lane, Tongarra Road and Russell Street.
Kiama
The LMR Centre for Kiama includes portions of Meares Place, Minnamurra Street, Terralong Street, Akuna Street, Railway Parade, Bong Bong Street, Thomson Street, CollinsStreet, and Collins Lane.
Nowra & Bomaderry
The LMR Centres for Nowra and Bomaderry include the following:
Nowra: Berry Street, Kinghorne Street, North Street, Junction Street, O’keeffe Avenue, East Street, Morton Parade, Haigh Avenue, Worrigee Street, Lawrence Avenue, Fitzgerald Lans, Stewart Place, and Schofields Lane
Bomaderry: Meroo Street, Coomea Street, Bunberra Street, and Tarawara Street.
Why These Areas in the Illawarra-Shoalhaven?
These locations have been strategically selected due to their access to goods and services, frequent public transport, and existing infrastructure capacity. The key considerations within these areas include:
Land Categorisations: The policy designates “inner” and “outer” areas within 400m and 800m walking distances of specified town centres and transport hubs. These areas are crucial for determining the type and scale of development permitted.
Walking Distance Calculations: Determining these distances requires careful consideration. For marginal cases, precise calculations by a surveyor may be necessary. This is where Allen Price can provide expert assistance, ensuring your project falls within the designated zones.
Excluded Land: Numerous exclusions exist, including bushfire prone land, heritage items, and areas affected by flooding or aircraft noise. Thorough due diligence is critical to confirm your site’s eligibility.
Dual Occupancies and Semi-Detached Dwellings: The policy expands on the July 2024 reforms, introducing new requirements and non-discretionary development standards for dual occupancies in R1-R4 zones within the designated areas. These standards offer developers more certainty and flexibility.
Attached Dwellings, Multi-Dwelling Housing, and Terraces: New provisions permit these housing types in R2 zones within the designated areas. Non-discretionary development standards are also introduced, along with the requirement to consider the Tree Canopy Guide for Low and Mid Rise Housing.
Residential Flat Buildings and Shop Top Housing: These are now permissible in R2 and R3 zones within the designated areas. New storey and height controls apply, along with non-discretionary development standards. However, potential complications exist regarding basement excavation and the calculation of building height.
Merit Assessment: While the new standards provide greater clarity, merit-based assessment by councils remains a crucial part of the approval process. Factors such as heritage, streetscape character, and building bulk will still be considered.
Infill Affordable Housing Incentives: Currently, these incentives do not apply to developments solely permitted under the new Chapter 6. This may change in the future, and Allen Price will keep you updated on any developments.
Applying The Policy Locally
While the NSW Government’s Low and Mid-Rise Housing Policy provides a clear framework for increasing housing diversity, the real challenge lies in its implementation at the local level. Each council in the Illawarra-Shoalhaven region will need to interpret and integrate the policy into their existing planning controls, potentially leading to variations in how the policy is applied across different areas.
Furthermore, community feedback can significantly influence the outcome of development applications. Concerns regarding increased traffic, potential impacts on local character, and the need for supporting infrastructure are common. Navigating these local complexities requires a deep understanding of council processes, community sentiment, and effective stakeholder engagement.
Navigating the Complexities with Allen Price
The Low and Mid-Rise Housing Policy presents a significant opportunity for developers in the Illawarra-Shoalhaven region, but navigating the intricate web of new regulations can be challenging. Allen Price is your trusted partner in this journey. We offer:
- Expert Advice: Our team of town planners, civil engineers, and surveyors possess in-depth knowledge of the new policy, local processes, and its implications for your projects.
- Site Selection and Feasibility: We’ll assist in identifying suitable sites within the designated areas and assess their development potential.
- Development Approvals: We’ll guide you through the entire development approval process, ensuring compliance with all relevant regulations.
- Project Management: We’ll oversee your project from concept to completion, ensuring a smooth and efficient process.
Stay Ahead of the Curve
At Allen Price, we’re committed to staying at the forefront of planning changes and providing our clients with the most up-to-date information and guidance. Contact us today to discuss how we can help you leverage the opportunities presented by the Low and Mid-Rise Housing Policy and achieve your development goals.
