Coming to a station near you –TOD program set to increase residential densities & property values around stations
30 May 2024
30 May 2024
The NSW Government's top priority is to deliver more high quality homes that are well-located near public transport hubs and supported by attractive public spaces, vibrancy and community amenity. This is intended to improve housing supply and improve housing affordability in the Six Cities Region.
The Transport Oriented Development program has two parts which seek to increase residential densities around 45 new Metro and existing train stations.
To create infrastructure and capacity for 47,800 new homes over the next 15 years, eight priority high-growth areas near transport hubs will be the subject of accelerated rezoning, which will take place between September and November this year.
The State-led rezonings will be generally within 1,200 metres of Bankstown, Bays West, Bella Vista, Crows Nest, Homebush Hornsby, Kellyville and Macquarie Park stations. These are called Transport Oriented Development Precincts (TOD Precincts).
These TOD Precincts have been identified as having significant capacity to support additional growth. Each will be the subject of master planning, supported by technical studies, to determine precise boundaries appropriate development controls. A mix of housing types will be planned for in each TOD Precinct, ranging from high rise developments close to the station tapering down to low rise housing types at the edges of the precinct.
Once rezoned, the State significant development pathway will be triggered by proposed residential development with a Capital Investment Value (CIV) threshold of $60M within the TOD Precincts. A dedicated assessment team will determine these SSD applications to ensure a quicker and more streamlined process, with a target of 90 days from lodgement to determination. Development consents will be time-limited to 2 years to encourage construction to commence, and new housing to be delivered more quickly. This pathway will remain in place until November 2027.
A target of up to 15% of new homes in the TOD Precincts will be affordable housing in perpetuity. This will be achieved by providing increased height and floor space ratios for affordable housing to realise a site's full development potential.
The Apartment Design Guide will remain the principal guiding document for housing in the TOD Precincts. Developers of high and mid-rise development in the precincts may select an architect from a list pre-approved by the NSW Government Architect, and bypass requirements for to run a design competition.
The NSW Government has committed $520M to provide community infrastructure in the TOD Precincts, such as road upgrades, active transport links and quality public open spaces. Councils will also be encouraged to invest the money it receives from local contributions to make further improvements to existing parks and open spaces.
On 13 May 2024, new amendments to State Environmental Planning Policy (Housing) 2021 commenced.
These amendments aim to deliver 170,000 new homes in mid-rise dwellings and apartment buildings that contain commercial space and affordable homes generally within 400m of 37 new Metro and existing rail stations. These are called Transport Oriented Development Areas (TOD Areas).
The Housing SEPP provides overriding planning controls and development standards for medium and high density residential development in TOD Areas (which are different from the 8 TOD Precincts which will be the subject of accelerated rezoning).
Initially, 18 TOD Areas have been created. These are generally the area within 400m of the following stations: Adamstown, Booragul, Cardiff, Corrimal, Gordon, Hamilton, Killara, Kogarah, Kotara, Lidcombe, Lindfield, Morisset, Newcastle Exchange, Roseville, Teralba, Turella, Wyong and Woy Woy. Specific sites within the TOD areas are mapped on the NSW Planning Portal Spatial Viewer, available here.
19 more TOD Areas are set to commence around the following stations:
New chapter 5 of the Housing SEPP prevails over provisions of other environmental planning instruments (EPIs) to the extent of any inconsistency.
Within the TOD Areas, depending on the zoning of the land, residential flat buildings and shop-top housing is permissible with development consent under the Housing SEPP (even if it is prohibited under another EPI). Specifically:
Chapter 5 of the Housing SEPP provides development standards that if complied with, prevent the consent authority from requiring more onerous standards. In the TOD Areas, these are:
If an EPI provides more generous standards, such as an FSR of 5:1 and a maximum building height of 60m, those more generous standards continue to apply.
In addition, development in a TOD Area might benefit from bonus FSR and height allowances under Chapter 2, Part 2, Division 1 of the Housing SEPP (which commenced on 14 December 2023).
If at least 10% of the development is affordable housing (not including any affordable housing required under Chapter 5 of the Housing SEPP or under any other EPI or planning agreement), and other non-discretionary development standards are met, then the development might benefit from an additional FSR or building height of up to 30%, depending on how much affordable housing is provided.
This affordable housing component of the development must remain for at least 15 years, and be managed by a registered community housing provider.
The Housing SEPP now mandates at least a 2% perpetual affordable housing contribution for development with 2,000m² of GFA or more in certain zones in TOD Areas.
This percentage is set to increase over time.
The 2% contribution is not calculated by including the affordable housing component, or any other affordable housing required by another EPI or planning agreement.
The Housing SEPP also provides development standards in respect of the amount of parking that must be provided for each affordable housing dwelling in a TOD Area. For a 1, 2 and 3 or more bedroom dwelling 0.4, 0.5 and 1 parking spaces must respectively be provided.
The consent authority must not grant consent unless it has considered the Apartment Design Guide (and is presumably also satisfied that the residential flat building or shop top housing is consistent with it).
In E1 zones, and in and in the Canterbury Bankstown LGA the B2 zone, within TOD Areas, residential flat buildings must have active street frontages. This means that the building must have design elements that encourage interaction between the inside of the buildings and the external public areas adjoining the building, such as cafes with outdoor dining areas and shops with windows and doors that open onto the street.
This publication is a joint publication from Ashurst Australia and Ashurst Risk Advisory Pty Ltd, which are part of the Ashurst Group.
The Ashurst Group comprises Ashurst LLP, Ashurst Australia and their respective affiliates (including independent local partnerships, companies or other entities) which are authorised to use the name "Ashurst" or describe themselves as being affiliated with Ashurst. Some members of the Ashurst Group are limited liability entities.
The services provided by Ashurst Risk Advisory Pty Ltd do not constitute legal services or legal advice, and are not provided by Australian legal practitioners in that capacity. The laws and regulations which govern the provision of legal services in the relevant jurisdiction do not apply to the provision of non-legal services.
For more information about the Ashurst Group, which Ashurst Group entity operates in a particular country and the services offered, please visit www.ashurst.com
This material is current as at 30 May 2024 but does not take into account any developments to the law after that date. It is not intended to be a comprehensive review of all developments in the law and in practice, or to cover all aspects of those referred to, and does not constitute legal advice. The information provided is general in nature, and does not take into account and is not intended to apply to any specific issues or circumstances. Readers should take independent legal advice. No part of this publication may be reproduced by any process without prior written permission from Ashurst. While we use reasonable skill and care in the preparation of this material, we accept no liability for use of and reliance upon it by any person.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.