The NSW Government’s Low and Mid-Rise (LMR) reforms – part of its broader Transport-Oriented Development (TOD) plan – are among the most ambitious planning changes in a generation. The policy is set to deliver 112,000 new homes over the next five years across Greater Sydney, Newcastle, and Illawarra-Shoalhaven.
Stage 1 began on 1 July 2024, legalising dual occupancies and semi-detached homes in R2 zones across the state. Stage 2 followed on 28 February 2025, unlocking terraces, townhouses, and mid-rise apartments (up to six storeys) within 800 metres of 171 transport hubs and town centres.
Miron Solomons, National Director & Co-Head of Cushman and Wakefield, described the speed of change as “incredible” and admitted many homeowners have been “caught off guard” by just how quickly the new zoning laws are being rolled out. Still, he emphasised that “we need supply – it has just become a question of where it should be.”
This is literally one of the most sweeping rezoning moves in living memory – especially when layered with complexities around heritage exclusions, bushfire zones, and local carve-outs.
Property Values & Market Ripples
The reforms could reshape property values almost overnight. Developer interest is already surging, particularly in high-value suburbs. With the long-abandoned Woollahra train station now earmarked for redevelopment, Miron noted the “desire from the investor” is undeniable, even as he questioned whether the talk of “10,000 dwellings” was realistic, calling that figure “a lot.”
For many homeowners, the rezoning could be “life changing” – unlocking massive increases in land value if their properties fall inside the zones – but outside? The picture is more uncertain. Some owners may miss the uplift, especially if they live next to new developments.
Miron urged homeowners to “look through the lens of the developer” to truly understand their property’s worth under the new framework. If approached by a developer, he advised that you “hope you’ve been a good neighbour, and you’re friendly with your neighbours” so that an amalgamated site sale becomes possible.
Still, he raised concerns of a “potential oversupply in apartments,” warning that values for some units could soften as scarcity eases. That said, he reassured that “not all hope is lost” because there will “always be demand for family homes.”
Neighbourhood Change & Liveability
The government pitches LMR as a housing affordability fix, but communities are divided. Local action groups have already formed, with Miron observing that “there is definitely a need to talk about it.”
Infrastructure remains a sore point. As Miron put it: “The infrastructure is not there” in many suburbs now facing higher density. He contrasted this with the “$90 billion spent on infrastructure since COVID – metro, light rail, M8” and argued that density should increase where that investment exists, not in areas lacking transport or schools.
This mismatch is why some residents feel like “people are walking on eggshells” – wondering if their suburb is next to be flooded.
Equity, Fairness & Planning Maze
Rezoning has created winners and losers.
Properties just outside the 400 m or 800 m zones may find themselves in a sweet – and awkward – spot: adjacent to shiny new developments but without the zoning upside.
Some suburbs like Blue Mountains and Wollondilly are excluded entirely due to flood or fire risk, while others receive what looks like a windfall. Heritage overlays further complicate the picture – one property can be protected, while the one next door gets rezoned.
Miron pointed out that “councils do still have control” through heritage and design rules, but admitted “so many moving pieces… need to be either fixed or corrected for it to make a lot of sense.”
Developers are offered a “30% bonus for including affordable housing” in projects, but Miron remains cautious. “From where I sit, there isn’t a lot of arguments to say that it works,” he said bluntly.
The Big Picture: Will It Work?
Will the reforms fix Sydney’s housing crisis? Miron isn’t convinced: “Right now, there’s a lot of work to be done.” He acknowledges the policy is far from polished: “You can’t stop progress – how it happens and how it takes shape is still a question mark.”
On affordability, he was hopeful: “I believe in the housing affordability component,” but flagged uncertainty: “Are the planning laws going to change again?”
For Australians building wealth through property, he noted the landscape may shift: “The future of building generational wealth… may change shape – maybe it’s apartments rather than homes.”
His advice? Take a breath: “There needs to be an element of calmness… I’d like to see the hysteria calm down.”
What This Means for Homeowners
For those inside rezoned areas, the opportunity could be significant. For those just outside, it’s about understanding how nearby development might affect lifestyle and values.
Miron’s closing reminder was to keep perspective: “This is real, this is happening,” but “not all hope is lost.” Demand for quality homes in family-friendly areas remains strong, while rezoning opens fresh opportunities for others.
My advice to homeowners:
Watch for local infrastructure plans, talk to your neighbours, and talk to a buyers agent if you’re wondering whether to hold or sell to a developer.
Home Delivered This Week
This week, I managed to secure a standout property on Balfour Road, Rose Bay – a standalone home on a generous 700 m² block. With the East rapidly transforming under the new LMR reforms, standalone houses on large blocks are becoming increasingly desirable as development pressure rises in surrounding areas. Properties with similar dimensions represent prime opportunities for developers, which is an important consideration for both current and future homeowners as values in these pockets are poised to move upwards.
