Introduction: A Quiet Revolution Beneath Our Feet
Sydney is undergoing one of the most profound and rapid transformations in its urban history. Unlike previous housing or transport announcements that come and go with little real-world impact, two major policies—Transport-Oriented Development (TOD) and Low and Mid-Rise Housing (LMR)—are not just policy tweaks. They represent a redefinition of how the city grows, who lives where, and what the future of suburban Sydney looks like.
For residents, investors, policymakers, and planners, understanding these reforms isn’t optional—it’s essential. These policies are quietly rewriting zoning maps, intensifying density, and changing the very DNA of Sydney’s suburban structure.
Today I’ll explain why I believe TOD and LMR are the most significant planning reforms in modern Sydney history, how they’re reshaping the built environment in ways we can’t yet fully see, and what we must do—today—to adapt and benefit from the change.
The Urban Planning Problem These Policies Aim to Solve
Sydney has long grappled with a persistent trio of urban crises: housing affordability, congestion, and environmental sustainability. Traditional urban sprawl has placed an unsustainable burden on infrastructure, while low-density zoning in established suburbs has artificially constrained supply.
Also consider the geographical confines of our city—an ocean to the East, mountains to the West and vast tracts of protected National parkland everywhere in between. Access to developable land is challenging.
According to Infrastructure Australia, Sydney needs an additional 1.7 million homes by 2041 to keep pace with population growth (Infrastructure Australia, 2021). However, a mismatch exists between housing needs and what zoning allows. Most of Sydney’s land is still zoned R2 (low-density residential), which prohibits the gentle intensification needed to support more diverse, affordable, and sustainable housing.
What’s been missing is a mechanism to strategically and rapidly rezone land, while anchoring new density around transport and services. TOD and LMR do exactly that.
What Is Transport-Oriented Development (TOD)?
TOD is an urban planning principle that prioritises high-density development within walking distance (typically 800 metres) of high-capacity public transport. In Sydney, TOD has been formally incorporated into planning policy via the Transport Oriented Development Program, embedded into the Housing SEPP (State Environmental Planning Policy) as Chapter 5.
Key features of the NSW TOD program:
- Applies to land within 400 metres of 18 strategically selected rail and metro stations.
- Enables apartment development up to six storeys or more as complying development, with increased heights and floor space ratios, in some areas up to 60 metres with FSR of 6:1.
- Offers a fast-tracked approval pathway for projects meeting prescribed design and zoning criteria.
The TOD initiative aligns with global best practice, including the International Association of Public Transport’s TOD Standard (ITDP, 2021), which promotes compact, connected communities designed around transit nodes.
Crucially, TOD in Sydney is not just a planning principle—it’s a legislative instrument capable of overriding local council resistance. It signals a new era of top-down strategic intervention.
What Is Low and Mid-Rise (LMR) Housing Policy?
LMR policy complements TOD by enabling a wider range of housing types—such as terraces, manor houses, duplexes, and small apartment blocks—in low-density residential zones.
The NSW Government introduced the LMR program in two stages:
- From July 2024, dual occupancies were permitted across all R2 zones as complying development.
- From February 2025, land within 800m of town centres and transport allow residential flat buildings (up to six storeys) under a codified pathway.
The policy draws heavily on research from the University of Sydney’s Henry Halloran Trust, which found that missing-middle typologies are essential to increasing supply without triggering community backlash associated with high-rise towers (Halloran Trust, 2022).
Unlike previous density pushes, LMR is targeted, walkable, and infrastructure-aligned. It enables a housing continuum between freestanding homes and towers.
Why These Reforms Are Unprecedented
Sydney has never seen planning policies of this scale and clarity.
A. They Unlock Supply Rapidly
TOD and LMR unlock large swathes of developable land in existing suburbs—without waiting for rezonings that can take 5–10 years. This is essential if NSW is to meet its commitment under the National Housing Accord to deliver 377,000 new homes by 2029.
Modelling by the NSW Department of Planning suggests TOD precincts alone could yield over 185,000 new homes (NSW DPE, 2024).
B. They Shift the Growth Map
Previously, most growth was pushed to fringe greenfield estates. These policies re-centre growth around transport infrastructure, increasing land efficiency and reducing car dependency. It’s a carbon-friendly, cost-effective model.
C. They Override Local Resistance
Both TOD and LMR empower state-level planning instruments to bypass local planning controls. This removes a major barrier to housing delivery: local opposition and political inertia.
In effect, these policies break the cycle of NIMBYism that has stalled housing delivery in high-opportunity areas.
How the Suburban Landscape Is Already Changing
Most residents don’t yet realise how profoundly these policies are changing their suburbs. But the signals are already visible to those paying attention:
Development Applications Are Spiking
- DA data from the NSW Planning Portal shows a 40% increase in mid-rise proposals near stations targeted by TOD and LMR.
- Suburbs like Bankstown, Riverwood, and Punchbowl have seen the first wave of six-storey builds replacing detached houses.
Land Values Are Diverging
- Sites within TOD and LMR zones are seeing rapid value increases, especially for corner blocks and amalgamated lots.
- Investors are already targeting these precincts, expecting future zoning uplift.
Infrastructure Is Being Front-Loaded
- Transport for NSW has accelerated pedestrian and active transport upgrades in TOD precincts.
- Councils are aligning their capital works budgets to support density (e.g. drainage, open space, and streetscapes).
These signals mirror the early phases of urban transformation documented in international TOD success stories such as Toronto, Vancouver, and Tokyo.
Challenges and Critiques
No policy is perfect. TOD and LMR face legitimate implementation challenges:
- Infrastructure Lag: Development could outpace school, hospital, or road upgrades.
- Design Quality Concerns: Mid-rise does not guarantee good design. Poor outcomes can entrench opposition.
- Equity Risks: Without inclusionary zoning, TOD may displace low-income renters from well-located suburbs.
Addressing these concerns will require firm regulation, design review panels, and targeted investment in public realm upgrades.
What You Should Do Now
Whether you’re a homebuyer, investor, or community leader, here’s how to act:
For Property Owners:
- Check the TOD and LMR precinct maps via the NSW Planning Portal.
- If your site is eligible, consider development, joint ventures, or land banking.
For Buyers:
- Prioritise properties near up-zoned stations or LMR corridors.
- Look for undercapitalised dwellings on oversized lots.
- Be mindful of how future densification may impact any property purchase—both positively and negatively. Think implications for views, solar access, noise, street parking, load on existing infrastructure.
For Local Leaders:
- Advocate for infrastructure funding to match development.
- Educate communities on the benefits of TOD and LMR to build support.
Conclusion: A Once-in-a-Generation Moment
TOD and LMR are not just planning reforms—they’re catalysts for a new urban era. They address supply, sustainability, and livability in one coordinated push. But the window to prepare is narrow.
If you’re watching this unfold from the sidelines, you’re already behind. The time to understand, prepare, and position yourself is now.
References
- Infrastructure Australia (2021). Infrastructure Audit.
- NSW Department of Planning and Environment (2024). TOD & LMR Program Guidelines.
- ITDP (2021). Transit-Oriented Development Standard.
- Halloran Trust, University of Sydney (2022). Missing Middle Housing Report.
- Transport for NSW (2024). Precinct Investment Framework.
- Mecone (2024). Analysis of TOD and LMR Reforms.
- Mill & Oakley Lawyers (2024). TOD Legislation Update.
- Planning NSW (2024). Housing SEPP Chapter 5.
- NSW Government (2024). National Housing Accord Agreement Response.
- Town Planning Sydney (2024). TOD and LMR Analysis.
FAQ: TOD & LMR in Sydney
What is TOD in Sydney and how close to stations does it apply?
Transport-Oriented Development (TOD) focuses new housing and jobs within easy walking distance of high-capacity transport. In Sydney’s current settings, many TOD controls concentrate within ~400m of selected rail/metro stations, with some policy references to broader walkable radii (up to 800m in planning literature). Always confirm the exact mapped boundary for your street on the NSW Planning Portal.
What does the Low & Mid-Rise (LMR) policy actually allow?
LMR enables duplexes/dual occ, terraces, manor houses and small apartment buildings in formerly low-density areas—especially within 800m of town centres or transport. Height/FSR and design standards are codified, but site-specific exclusions (heritage items/areas, flooding, bushfire, aircraft noise (ANEF) contours, biodiversity/ riparian corridors) may still rule out development.
How do I check if my property is inside a TOD or LMR area?
Open the NSW Planning Portal and search your address.
For TOD, search for and activate the "Transport Oriented Development Sites Map" layer under "SEPP (Housing) 2021". For LMR, activate the "Low and Mid-Rise Housing Areas Map". The viewer will then display the zones on the map.
Check overlays: heritage, flood, bushfire, ANEF, conservation. These factors affect the ‘developability’ of the lot.
Cross-check your LEP (local environmental plan) for any site-specific clauses (minimum lot size, height, FSR) that still apply.
If in doubt, request a feasibility review from us.
Which suburbs in the Inner West are most likely to feel TOD/LMR first?
You can already see some visible change around Stanmore, Petersham, Newtown, Macdonaldtown, Erskineville, Dulwich Hill and Marrickville—especially 0–400m from stations and inside 800m of local centres such as Leichhardt, Marrickville, and Ashfield. Outcomes will vary street-by-street with heritage, flood and lot amalgamation potential.
What about the Eastern Suburbs?
Watch corridors around Kensington/UNSW (Anzac Parade light rail) and Randwick/Belmore Road centre, as well as Bondi Junction and Green Square/Waterloo interfaces. Proximity to beaches and heritage streetscapes means design quality and overshadowing tests are rigorous—values can diverge markedly between sun-favoured and overshadowed lots.
And the Lower North Shore?
Look to the Crows Nest–St Leonards–Artarmon spine and pockets of Neutral Bay, Wollstonecraft and Waverton. The new Metro is a powerful demand driver; lots within shorter walk-sheds, especially corners and wider frontages, often trade at a premium for terrace/low-rise assembly potential.
Will six-storey apartments appear on every street inside 800m?
No. Height/FSR envelopes are mapped, not blanket. Many streets are excluded by heritage conservation areas, overlays (flood/bushfire/ANEF), topography or minimum frontage/lot-size rules. Use the map first, not headlines.
What property attributes command the biggest premium in LMR precincts?
- Corner or dual-frontage lots (easier access, larger building envelopes).
- Wider frontages that meet terrace/manor house module widths.
- Gentle slopes (lower excavation/retaining costs).
- North/east orientation (solar access compliance).
- Proximity to centres/stations (0–400m catchments often most valuable).
- Low-risk overlays (no heritage/flood/ANEF).
I’m a homeowner—how might this affect my street?
Pros: new shops/cafés, better paths/cycling links, increased service frequency, potential uplift in land value.
Cons: construction activity, parking pressure, overshadowing/overlooking risks on sensitive interfaces. Expect setback, privacy, and design-excellence controls to manage transitions.
I’m an investor—what strategies suit TOD/LMR right now?
- Target under-capitalised houses on oversized or corner lots inside mapped catchments.
- Assemble 2–3 adjoining lots near stations to unlock mid-rise feasibility.
- Prioritise rent-ready terraces/duplex stock near universities/health hubs (Kensington/UNSW, Randwick Health, St Leonards).
- Bake in infrastructure levies, design costs and holding time; use conservative exit pricing.
Does TOD/LMR change character streets forever?
Character areas are often specifically mapped for protection. Where change occurs, policy emphasises mid-rise with good design over towers, with setbacks, tree canopy targets, and daylight rules to manage amenity. However be aware that there are many areas with heritage styled homes that are not protected by a heritage overlay. There is also the potential for height increases into existing buildings airspace in heritage areas.
When do the rules apply?
Staged commencement occurred through 2024–2025 (dual occ across R2 from mid-2024; codified LMR near centres/transport from early 2025; TOD precincts activated per state mapping). Always check the current instrument for your site before acting.
How much could my land be worth if included?
Uplift varies widely with frontage, depth, zoning map colour, exclusions, and assembly potential. Premiums often accrue first to corner/wide lots and 0–400m walk-sheds. Get a site-specific valuation/feasibility rather than applying a blanket “per-m²” figure.
What are the biggest deal-killers buyers miss?
- Heritage items and conservation areas hidden in the fine print.
- Flood/bushfire/ANEF that cap yield or block approval.
- Lot width insufficient for terraces/manor houses.
- Strata or easements that constrain redevelopment.
A professional planning due-diligence scan is essential.
How does design quality get controlled—won’t mid-rise look ugly?
Mid-rise must still satisfy Apartment Design Guide (ADG) principles and local design controls. Many precincts reference design review panels and require architect certification. Quality governance (and choosing reputable builders—e.g., iCIRT-rated) matters.
Will TOD/LMR lower my home’s value if I’m just outside the boundary?
It depends. Some “just-outside” homes suffer opportunity cost versus included neighbours; others benefit from improved amenity without redevelopment pressure. Micro-street appeal, parking and solar access still anchor value.
Where can I see if my address in Petersham / Randwick / Crows Nest is eligible?
Start with the NSW Planning Portal map for your address, then book a quick feasibility call. We’ll screen for TOD/LMR eligibility, exclusions and a high-level buildability test.
People Also Ask
Q: Is my R2 block near Stanmore station eligible for terraces or a small apartment?
A: Possibly—eligibility depends on mapped LMR catchments and exclusions. Many R2 lots are now eligible for dual occ, and within 800m of centres/transport select streets may support manor houses or small flats via codified pathways. Check lot width/frontage and heritage overlays.
Q: I own in Dulwich Hill within 500m of the station. Is six storeys automatic?
A: No. Even inside walk-sheds, height/FSR vary by map. Heritage, flood and minimum frontage can limit yield. Confirm via the Portal and a feasibility assessment.
Q: We’re looking at a corner lot in Kensington near the light rail—good buy?
A: Corner lots with adequate frontage can be excellent LMR candidates provided no heritage/flood constraints. Proximity to UNSW supports both owner-occupier and rental demand.
Q: Will Crows Nest Metro supercharge townhouse demand on the LNS?
A: Expect strong demand within 0–800m of the station, particularly on quiet streets with development potential. Not every street qualifies; mapping and overlays decide feasibility.
Q: How do I safeguard build quality if I buy off-the-plan in a TOD precinct?
A: Prioritise iCIRT-rated builders/developers, review the design review status, and understand defect insurance provisions. Independent legal/technical reviews are recommended.
Q: Will parking get worse?
A: Some streets will feel pressure during construction phases, which is why many precincts invest in walking/cycling links and local centre upgrades. Over time, better access can reduce car dependency for short trips.
Q: What’s a fast filter for investors short-listing sites?
A: (1) Inside mapped catchment, (2) corner/wide frontage, (3) clean overlays, (4) gentle slope, (5) near schools/health/university or strong centre, (6) realistic end values. If 5/6 tick, commission a feasibility.
Ready to Discuss Your Property Search?
Get in touch with Dan. You can book a call with me here or send an email to dan@unicornbuyersagents.com.au.
