A landmark planning reform set to take effect next week will allow over 220,000 properties across New South Wales to build upwards, unlocking $25 billion in rooftop development potential.
Announced by Minister Paul Scully and the NSW Department of Planning, Housing and Infrastructure, the initiative is expected to create thousands of new homes while funding essential building repairs.
The Low and Mid Rise (LMR) Reforms mark one of the most significant changes to NSW’s planning rules in recent history. The reforms will enable higher-density housing near transport hubs, employment centres, and essential services, allowing medium-density developments in R1 and R2 zones and 4-6 storey apartment buildings in R3 and R4 zones.
The changes will impact more than 130 transport stations and town centres in Sydney, 25 locations across the Central Coast and Newcastle region, and 11 in the Illawarra and Shoalhaven region.
Of the 185,000 properties eligible for new development, 129,000 will benefit from increased floor space ratios and minimum lot size adjustments, making additional storeys and rooftop homes a reality.
The shift towards airspace development mirrors global trends seen in cities like London, Paris, and New York, where vertical expansion has been embraced as a sustainable solution to housing shortages. “This is a game-changing policy,” said Warren Livesey, an airspace specialist from Buy Airspace.
“Rather than demolishing buildings and displacing communities, we can now utilise underused airspace to create much-needed housing and fund vital repairs—without adding urban sprawl.”
With 35 local government areas set to benefit, including nearly 10,000 properties in Sutherland Shire alone gaining floor space ratio uplifts, property owners are encouraged to assess their rooftop potential.
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