Explore Sydney’s evolving housing market with NSW’s new medium-density reforms. Discover key opportunities and hotspots in the Eastern Suburbs & Inner City/West.
NSW Medium-Density Reforms Set to Transform Sydney’s Housing Market
Sydney’s housing market is set for a fresh boost with the NSW government’s latest medium-density reforms. These changes, effective from February 28, will allow more terraces, townhouses, and apartment blocks—up to six storeys—around 171 key transport hubs and town centres across Greater Sydney and its surrounds. The goal is ambitious: to help deliver 377,000 new dwellings over the next five years, with over 100,000 of those coming from this “missing middle” approach.
The new policy permits buildings up to six storeys (around 24 metres) on medium- or high-density zoned land within 400 metres of transport hubs and town centres. In residential areas, smaller blocks up to three storeys (approximately 9.5 metres) are allowed within 800 metres. These changes are designed to create more connected and livable neighbourhoods—building homes where access to public transport, open spaces, and essential services is maximised.
While the reforms target not only Sydney but also regions like the Central Coast, Illawarra, Shoalhaven, and Hunter, some local councils have expressed concerns about fitting additional low- and mid-rise housing into established middle suburb areas. Nevertheless, the government is confident these changes will boost housing affordability and broaden the choices available for renters and buyers.
For a closer look at some key local hotspots, take a look at the table below which highlights selective areas in both the Eastern Suburbs and Inner City & West:
| Eastern Suburbs | Inner City & West |
|---|
| Bondi Junction station | Annandale town centre (Booth Street) |
| Darlinghurst | Ashfield station |
| Double Bay | Broadway shopping centre |
| Edgecliff station | Glebe Point Road |
| Erskineville station | Dulwich Hill station |
| Kensington light rail station | Leichhardt Market Place shopping centre |
| Kings Cross station | Lilyfield light rail station |
| Kingsford Juniors light rail station | Marrickville station |
| Maroubra Junction town centre | Newtown station |
| Paddington town centre | Petersham station |
| Randwick town centre and light rail station | St Peters station |
| Redfern station | Stanmore station |
| Surry Hills south town centre | |
| UNSW Anzac Parade light rail station | |
| Waterloo town centre | |
Developers will continue to submit applications to local councils, so while the framework is set, the pace of actual development will depend on each project. These reforms are expected to unlock new opportunities, improve affordability, and offer a wider range of living options across Sydney. As this new chapter unfolds, these key areas are set to benefit from a revitalised urban landscape and improved connectivity to critical infrastructure.
