Rezoning Sydney's Inner West

The debate about rezoning in Sydney's Inner West continues as the NSW government advances substantial housing reforms under its Transport Oriented Development (TOD) Program and the Diverse and Well Located Homes (DWLH) initiative. These reforms aim to facilitate urban development around key transport hubs to address the city’s dire need for more housing. The initiatives hope to achieve an estimated 185,000 new homes in the next 15 years.

The housing reforms are being delivered through two government initiatives: the Transport Oriented Development (TOD) Program and the Diverse and Well Located Homes (DWLH) framework. The TOD will take precedence over the Diverse and Well Located Homes reforms wherever the initiatives overlap.

Transport Oriented Development Program

The NSW government’s TOD initiative is spearheading these reforms. This program is strategically designed to amend planning controls within proximity to 37 metro and rail stations and is segmented into two distinct parts:

Part 1: Rezoning of Priority Areas

The first part of the TOD focuses on 8 high-priority areas, including Bays West. Here, land within a 1,200-meter radius of eight rail stations will undergo rezoning. The development spectrum ranges from low-rise housing types such as terraces and duplexes to high-rise developments near these stations.

Part 2: Broadening the Scope

Scheduled to start in April 2024, the second part of the program extends the rezoning to areas within 400 meters of 31 well-connected stations and town centers, including Inner West suburbs such as Croydon, Ashfield, Marrickville, and Dulwich Hill. The planned changes under this segment allow for the construction of residential apartment buildings across various residential and commercial zones. Key proposed changes include a building height limit of approximately 21 meters (about 6 storeys), a floor space ratio of 3:1, and no restrictions on minimum lot size or width.

Diverse and Well Located Homes

Diverse and Well Located Homes is a rezoning reform for low- to mid-rise housing. DWLH aims to introduce non-refusal standards for new low- and mid-rise housing within 800 meters of transport nodes and mixed-use zones e.g. shops, services, and amenities. This policy covers nearly all of the Inner West, proposing 6-storey buildings within 400 meters and 4-storey buildings from 400-800 meters. These standards also apply within heritage conservation areas and to heritage items, which has stirred criticism and concern among local stakeholders.

Below is a map of the affected central Sydney areas. The blue circles are the locations affected by the TOD program. The pink circles are the locations affected by the DWLH program:

Source: National Trust

Local Responses and Developments

Recent media releases from the Inner West Council have demonstrated a call to action for the State Government to relinquish control over local council planning. On April 12, 2024, it was announced that the Inner West Council would retain planning authority over areas around four train stations—Ashfield, Marrickville, Dulwich Hill, and Croydon. This decision is a strategic move to prevent blanket rezoning by the State Government. However, the concession does require the Inner West Council to advance its own local planning initiatives to increase housing availability by the end of 2024. Inner West Mayor Darcy Byrne has highlighted the council's negotiation efforts with the government to secure further public housing investments and enhance housing affordability.

Regarding the Transport Oriented Development (TOD) impacting the Bays Precinct, a public meeting document released by Kobi Shetty MP, Member for Balmain, and Councillor Sylvie Ellsmore of the City of Sydney in February 2024, states planning officials have confirmed that rezoning efforts will be confined to state-owned land directly adjacent to the Metro station. 

Criticism and Opposition

The housing reforms have attracted fierce criticism. Organizations such as the Inner West Council, City of Sydney, Planning Institute of NSW, Property Council of Australia, and the National Trust have expressed significant concerns. The primary criticism revolves around overriding local planning control with blanket zoning rules that do not include consultation on dwelling targets, and overlook environmental and heritage conservation.

Looking Forward

Despite the criticisms, there is a broad acknowledgment of the pressing need for more housing. It is expected that the state government will continue to influence planning controls, prompting local councils to find innovative solutions for affordable housing and increased supply. There is a long way to go with lengthy negotiations ahead and the success of the programs will depend upon the State and Local Councils striking the right balance between state-led housing targets and local governance. 

As Sydney grapples with a housing crisis, the strategies outlined in the TOD and DWLH programs are confirmation that the Inner West is headed towards higher density living. These housing reforms also service as a reminder of how rapidly planning controls can be reassessed. Consequently, it is essential for property buyers to keep informed about changes in planning regulations and development applications to fully grasp how these changes might impact properties they are considering for purchase.