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Providing housing supply, choice and affordability, with access to jobs, services and public transport

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  • Infrastructure
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A city supported by infrastructureInfrastructure
A collaborative cityCollaboration
A city for peoplePeople
Housing the cityHousing
A city of great placesPlaces
A well connected cityConnected
Jobs and skills for the cityJobs
A city in its landscapeLandscape
An efficient cityEfficiency
A resilient cityResilience
Planning Priority C5

Figure 9: Central City District projected household structure 2011-2036

Download this image s3fs-public/western_figure_09_0.png (format PNG / 0 KB )

Source: NSW Department of Planning and Environment, 2016 New South Wales State and Local Government Area Household Projections and Implied Dwelling Requirements 2016 to 2036, NSW Government, Sydney

Thirty five per cent of the District's housing is provided as either apartment or medium density housing. Multi-unit dwellings can provide important housing for seniors and more affordable homes for young people. This needs to be balanced with medium density row, terrace and villa homes that provide diversity, especially for larger households. A diverse mix of housing can provide greater opportunities to cater for a range of changing needs.

Housing preferences

Research into housing preferences in Greater Sydney has shown that people generally prefer to remain within their local area, with 82 per cent of residents moving into a new home within 15 kilometres of their former residence7. In the Central City District, there are five housing market areas (refer to Figure 10).

  • Greater Parramatta housing market area - which comprises of the whole of the Cumberland Local Government Area, the majority of the Parramatta Local Government Area, including the Greater Parramatta Growth Area, the Parramatta Light Rail project and the south of Blacktown Local Government Area
  • Rouse Hill-Dural - which includes part of the Hornsby Local Government Area in the North District but mainly sits within The Hills Local Government Area in the Central City District
  • North West - which extends from St Marys east into Blacktown and includes the majority of the North West Growth Area around Marsden Park as well as Richmond and Windsor
  • Blacktown-Marrayong - which is contained entirely in the east of Blacktown Local Government Area, south of the North West Growth Area and contains Blacktown strategic centre
  • Central North - which contains the whole of Lane Cove and Ryde local government areas as well as most of the urban areas of the Hornsby Local Government Area. A significant part of this housing market area stretches west to Carlingford and Parramatta Local Government Area.

These housing markets mean that providing supply in one market demand area may not satisfy demand in another. Understanding need and capacity in individual housing markets will better satisfy residents' preferred housing locations.

Figure 10: Central City District housing market areas.

Source: Greater Sydney Commission, 2016 adapted from Implementing metropolitan planning strategies: taking into account local housing demand. Technical report (2013). City Futures Research Centre UNSW

Download this image central_figure_10.jpg (format JPG / 215 KB )

Historic housing supply

The Central City District is growing at a rapid pace. Dwelling approvals and completions are at their highest levels in 18 years, with 11,095 dwelling completions in 2016-17.

In the five-year period between June 2012 and July 2017 more than 35,915 additional homes were completed across the District, representing around a quarter of Greater Sydney's dwelling completions8. This was more than 80 per cent higher than total dwelling completions in the previous five-year period.

Growth in the past five years was mainly concentrated in and around centres and along public transport corridors. The greatest number of dwelling completions occurred in the Parramatta Local Government Area (13,900) followed by Blacktown (11,200), The Hills (5,950) and Cumberland (4,750). After the City of Sydney Local Government Area, Parramatta and Blacktown local government areas produced Greater Sydney's highest number of new homes over the last five years.

Although more than 56 per cent of these recent completions are multi-unit dwellings, existing housing stock remains dominated by detached dwellings.

Multi-unit dwellings provide compact housing for seniors, homes for single people and more affordable homes for young people and young families. The remaining housing completions are medium density, comprising three to five units, new single dwellings or dual occupancy dwellings. These are more prevalent in the west of the District.

Over the past 10 years, the Central City District has had an annual average dwelling completions rate of 5,560. Forecast supply of housing growth in the Central City District has identified the potential for dwelling completions above this annual average in the next five years.

Current initiatives and opportunities

Additional capacity for housing supply is well progressed across much of the District. Current State-led initiatives include:

  • Greater Parramatta Growth Area, incorporating housing in 12 precincts Westmead, Parramatta North, Parramatta CBD, Harris Park, Camellia, Rydalmere, the Carlingford Corridor (including Telopea and Dundas), Silverwater, Sydney Olympic Park and Carter Street, Wentworth Point, Parramatta Road and Homebush (in the Eastern City District)
  • Parramatta Road Urban Transformation Strategy, including the Granville and Auburn precincts
  • Sydney Metro Northwest Urban Renewal Corridor with Planned Precincts at Showground, Bella Vista Kellyville and Cudgegong Road
  • North West Growth Area, which includes the suburbs of Riverstone, Vineyard, Schofields, Marsden Park and Colebee
  • Communities Plus project at Telopea as part of the Greater Parramatta Growth Area.

Other Planned Precincts outside of these areas include Epping, Seven Hills and Wentworthville.

The Planned Precincts will be consistent with the objectives and strategies of A Metropolis of Three Cities and this District Plan to enhance liveability, sustainability and productivity. These projects will be well planned and designed, delivered in collaboration with councils and informed by State agencies and their asset plans. This planning will be supported by a Special Infrastructure Contribution or similar satisfactory arrangement to help fund the delivery of essential community infrastructure such as health facilities, schools, open space and roads.

Beyond the urban renewal precincts, local government studies over the past 10 years have identified opportunities to increase capacity for housing supply in the Central City District.

More housing in the right locations

Creating capacity for new housing in the right locations requires clear criteria for where capacity is to be located. Accommodating homes needs to be linked to local infrastructure - both to optimise existing infrastructure and to maximise investment in new infrastructure. Opportunities for capacity that aligns with infrastructure can be realised by urban renewal, local infill developments and land release areas (refer to Figure 11).

Urban renewal

Opportunities for urban renewal need to be considered by location and by capacity of existing and proposed infrastructure. In older more established parts of Greater Sydney, urban renewal opportunities may exist around regional transport and strategic centres where links for walking and cycling promote a healthy lifestyle and contribute to liveability.

Where there is significant investment in mass transit corridors, both existing and proposed, urban renewal may best be investigated in key nodes along the corridor. Corridor investigations can provide a longer term strategic context while the development of precincts within the corridor is sequenced over time.

Locational criteria for urban renewal investigation opportunities include:

  • alignment with investment in regional and district infrastructure which acknowledges the catalytic impacts of infrastructure such as Sydney Metro Northwest, NorthConnex, WestConnex and Parramatta Light Rail
  • other possible future investments such as Sydney Metro West and opportunities created by enhancements to existing infrastructure such as upgrades to schools, open space including sporting facilities and transport
  • accessibility to jobs, noting that over half of Greater Sydney's jobs are generated in metropolitan and strategic centres - accessibility to regional transport, noting that highfrequency transport services can create efficient connections to local transport services and expand the catchment area of people who can access regional transport
  • catchment areas within walking distance (10 minutes) of centres with rail, light rail or regional bus transport
  • areas of high social housing concentration where there is good access to services, transport and jobs
  • distance from special land uses such as ports and airports

Local infill development

Local infill development - the missing middle - refers to medium density housing such as villas and townhouses within existing areas, that provide greater housing variety.

Councils are in the best position to investigate and confirm which parts of their local government areas are suited to additional medium density opportunities. As part of their investigations councils should consider:

  • transitional areas between urban renewal precincts and existing neighbourhoods
  • residential land around local centres where links for walking and cycling help promote a healthy lifestyle
  • areas with good proximity to regional transport where more intensive urban renewal is not suitable due to challenging topography or other characteristics
  • lower density parts of suburban Greater Sydney undergoing replacement of older housing stock
  • areas with existing social housing that could benefit from urban renewal and which provide good access to transport and jobs.

Design guidelines set out in the NSW Department of Planning and Environment's Draft Medium Density Design Guide show how this infill can promote good design outcomes.

New communities in land release areas

The Growth Area programs of the NSW Department of Planning and Environment guide the development of new communities in land release areas and provide significant capacity into the medium and longer term. These include the North West Growth Area.

Figure 11: Central City District future housing supply

Source: Greater Sydney Commission, NSW Department of Planning and Environment and NSW Government Housing Affordability Package


Housing strategies

Housing strategies are to be prepared by councils for a local government area or district and given effect through amendments to local environmental plans. To deliver coordinated outcomes the development of housing strategies is to be aligned with councils' community strategic planning and to inform local strategic planning statements and local environmental plans. To address housing supply, housing strategies are to be developed by councils to:

  • make provision for the anticipated growth associated with the 0-5 and 6-10 year housing targets (when agreed)
  • align projected growth with existing and proposed local infrastructure and open space improvements (refer to Planning Priorities C1, C3 and C17)
  • identify the right locations for growth, including areas that are unsuitable for significant change in the short to medium term - identify capacity to contribute to the District's 20 year strategic housing target
  • inform the Affordable Rental Housing Target Schemes for development precincts
  • coordinate the planning and delivery of local and State infrastructure.

The NSW Department of Planning and Environment will prepare guidelines to support housing strategies as outlined in A Metropolis of Three Cities (Objective 10).

Housing targets

Table 2 sets five-year housing targets for the Central City District. These are based on the District's dwelling needs and existing opportunities to deliver supply. They include traditional detached and attached houses, apartments and granny flats.

The five-year targets are generally consistent with known housing approvals and construction activity. These are minimum targets and largely reflect delivery potential under current planning controls.

Table 2: Central City District housing targets by local government area

LGA 0-5 year housing supply target: 2016-2021
Blacktown 13,950
Cumberland 9,350
Parramatta 21,650
The Hills 8,550
Central City District Total 53,500

Each council is to develop 6-10 year housing targets. The 6-10 year housing targets will be developed iteratively through the housing strategy. The strategy is to demonstrate capacity for steady housing supply into the medium term. Principles for housing are set out below and will be expanded on in Guidance Notes by the NSW Department of Planning and Environment.

Meeting housing demand over 20 years requires a longer term outlook. A Metropolis of Three Cities sets a District 20-year strategic housing target of 207,500 dwellings, equating to an average annual supply of 10,375 dwellings over 20 years, or approximately one in four of all new homes in Greater Sydney over the next 20 years. Each council will develop 6-10 year housing targets.

Future Transport 2056 identifies city-shaping transport projects that will, in the long term, improve accessibility to jobs and services, and act as a stimulus for additional housing supply. To deliver the 20-year strategic housing target, councils should, in local housing strategies, investigate and recognise opportunities for long-term housing supply associated with city-shaping transport corridors; growing, emerging and new centres; and other areas with high accessibility.

Housing principles

Housing strategies play an important role in planning for more liveable neighbourhoods and to meet housing demand by responding to the following principles:

  • Housing need: the projected housing need and demographic characteristics of the existing and growing community, including different cultural, socio-economic and age groups and the availability of a range of housing types, tenures and price points.
  • Diversity: including a mix of dwelling types, a mix of sizes, universal design, seniors and aged care housing, student accommodation, group homes, and boarding houses.
  • Market preferences: market demand considerations that drive the take-up of housing, including local housing preferences.
  • Alignment of infrastructure: opportunities to optimise transport infrastructure enabling access to jobs, health, education and recreation facilities, that align with State and local government infrastructure priorities (refer to 'More housing in the right locations').
  • Displacement: managing potential impacts of growth on existing communities such as displacement by understanding the location and volume of affordable rental housing stock.
  • Amenity: opportunities that improve amenity including recreation, the public realm, increased walkable and cycle-friendly connections to centres.
  • Engagement: engaging the community on a range of options and neighbourhood priorities that can be integrated with new housing and benefit existing and future communities.
  • Efficiency: opportunities for innovations in waste management, water and energy provision by determining the nature of growth, location and demand for utilities.

Key technical aspects of preparing a housing strategy to improve housing affordability and choice will be further supported by a new planning circular and guidelines to be prepared by the NSW Department of Planning and Environment.

Key aspects include:

  • Capacity: land with potential for rezoning for residential development.
  • Viability: the assessment of new areas and whether the capacity created is financially viable for a range of configurations (one, two, three or more bedrooms) and is consistent with market demand and planning controls.
  • Good design: buildings that exhibit design excellence in neighbourhoods that are walkable, cycle friendly, connected to transport and services, and have a mix of land uses to support active healthy and socially-connected communities.
  • Environment: green infrastructure including biodiversity and waterways, local features (such as topography, heritage and cultural elements, visual impacts, natural hazards such as flooding, special land uses and other environmental constraints) lot sizes, strata ownership and the transition between different built forms.
  • Mix: a mix of housing types allows people to relocate within their local area and stay connected to community services, friends and family.
  • Supply: land zoned for residential development, served by adequate infrastructure and ready for development projects.
  • Affordable rental housing: through housing diversity for those on moderate incomes and affordable rental housing for low and very lowincome households.
  • Local character: recognising the distinctive and valued combination of characteristics that contribute to local identity.
  • Social housing: more and better access to supported and/or subsidised housing.
  • Delivery: the staging of enabling infrastructure, upgrades or expansions of local infrastructure such as schools, open space including sportsgrounds and community facilities.
  • Monitoring: homes completed and ready for occupation.

A place-based planning approach to the development of housing strategies will help facilitate high quality urban outcomes including the creation of walkable neighbourhoods which support active and healthy lifestyles, as well as the creation and renewal of great places (refer to Planning Priority C6).

Affordable Rental Housing Targets

Housing has a dual social and economic role across Greater Sydney. Communities require housing that meets changing demographic needs over time and that provides stability. At the same time housing has an economic productivity role by providing housing choice and affordability for a cross-section of workers.

Research and testing of needs through stakeholder and community consultation reaffirms the critical importance of providing a diversity of housing across the housing continuum in Greater Sydney.

Ensuring a steady supply of market housing in locations supported by existing or planned services and amenity with an emphasis on public transport access is outlined in Objective 10 of A Metropolis of Three Cities.

The Affordable Rental Housing State Environmental Planning Policy provides incentives for development projects to include a 10-year term for affordable rental housing dwellings for very low to moderate income households; however, the areas where this is being applied are limited.

A Metropolis of Three Cities includes Affordable Rental Housing Targets for very low to low-income households in Greater Sydney. Affordable Rental Housing Targets that are generally in the range of 5-10 per cent of new residential floor space are subject to viability. A Metropolis of Three Cities identifies the need for further work by the Greater Sydney Commission to support the implementation of the Affordable Rental Housing Targets including consideration of allocation, ownership, management and delivery models.

The NSW Department of Planning and Environment and the Greater Sydney Commission will also jointly investigate ways to facilitate housing diversity through innovative purchase and rental models. This collaboration will also develop mechanisms to deliver the Affordable Rental Housing Targets.

Further opportunities for planning to support housing affordability and diversity measures include:

  • more compact housing, either on smaller land lots or through a proportion of smaller apartments of innovative design to support moderate-income households and particularly key workers and skilled workers in targeted employment areas such as health and education precincts
  • new owner-developer apartment models that support lower cost and more flexible delivery of apartments for like-minded owner groups.
Photograph of a building in Rouse Hill

Rouse Hill


Prepare local or district housing strategies that address the following:

a. the delivery of five-year housing supply targets for each local government area
b. the delivery of 6-10 year (when agreed) housing supply targets for each local government area
c. capacity to contribute to the longer term 20-year strategic housing target for the District
d. the housing strategy requirements outlined in Objective 10 of A Metropolis of Three Cities that include:

i. creating capacity for more housing in the right locations
ii. supporting planning and delivery of growth areas and planned precincts as relevant to each local government area
iii. supporting investigation of opportunities for alignment with investment in regional and district infrastructure
iv. supporting the role of centres.

Blacktown City Council

City of Parramatta Council

Cumberland Council

The Hills Shire Council


Prepare Affordable Rental Housing Target Schemes following development of implementation arrangements.

Councils and other planning authorities