NSW Zoning Change 2025: What the New 6-Storey Rules Mean for Property Owners

Zoning change - The short version

NSW’s new planning rules now allow 2–6 storey buildings within 800 metres of many train stations and town centres. If you own or advise on property in Sydney or regional NSW, this change could significantly affect land value, contract obligations and development feasibility.

Here’s what you need to know—and what to do.

What’s changed?

In February 2025, the NSW Government announced a new Low and Mid-Rise Housing Policy, designed to increase housing supply by fast-tracking development near public transport and town centres.

The policy allows residential buildings of up to 6 storeys on land within 800 metres of key locations—regardless of local zoning.

Source: NSW Planning Portal – Low & Mid-Rise Housing Policy

Who is affected?

• Property owners and developers holding land near rail corridors or centres (e.g. Brookvale, Dee Why, Chatswood, Hurstville, Parramatta)

  
  

• Buyers looking to invest in sites with uplift potential

  
  

• Agents marketing properties based on zoning value

  
  

• Sellers whose land is gaining interest from developers

Legal considerations

This policy shift opens up opportunity—but also creates legal risk if not handled carefully in contracts and marketing.

• Planning certificates (10.7) - These may not yet reflect the new policy. Ensure they’re current and include any relevant overlays or transitional clauses.

  
  

• Disclosure and expectations  - If you're selling a site that may benefit from uplift, it's crucial to be accurate. While formal disclosure of potential rezoning isn’t always required, overstating development potential—especially in agent listings—can still trigger misleading conduct claims under the ACL.

  
  

• Valuation shifts - Development potential may raise the value of your land—but you’ll need to ensure buyers and financiers are working off realistic assumptions. A zoning policy doesn’t guarantee DA approval.

  
  

• Site-specific constraints - Easements, shared access, covenants or heritage overlays may still limit what’s actually buildable—even if the zoning says 6 storeys.

  
  

• Contract strategy - If the uplift potential is part of the pitch, consider including clear disclaimers in the contract, or tailored conditions to manage DA-related delays or buyer expectations.

Bottom Line

If you’re buying, selling, or advising on land in an affected area, now is the time to review your strategy.

This zoning change has created new value—but also new complexity. Whether you're negotiating a contract, updating your disclosure documents, or assessing uplift potential, make sure the legal groundwork is solid.

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