In a bid to address the housing crisis and enhance inner-city living, the City of Sydney is proposing significant changes to planning rules, encouraging developers to focus more on building rental properties.
The proposed amendments to the Sydney Local Environment Plan 2012 are now open for public comment until 14 May, with the city seeking feedback from residents and stakeholders.
Under the proposed changes, developers would be granted increased floor space allowances of between 20 per cent to 75 per cent for build-to-rent (BTR) developments, depending on the location of the site.
This incentive would apply to both conversions and new constructions.
However, the window for developers to take advantage of these incentives would be limited to five years from the implementation of the new planning rules.
Clover Moore AO, the Lord Mayor of Sydney, highlighted the importance of adapting the city’s planning strategies to meet its evolving needs.
She highlighted the success of BTR models in other parts of the world in providing stable and secure accommodation for renters.
Moore pointed out that such developments often have high occupancy rates, contributing to the vibrancy of inner-city areas and preventing newly built properties from sitting vacant due to overseas investors.
In addition to boosting the supply of rental properties in central Sydney, the proposed changes also include incentives for developers to create more co-living accommodations.
These developments are expected to cater to students and low-income workers, particularly in areas close to major tertiary education institutions like Haymarket.
Moore acknowledged the challenges faced by students in Sydney’s rental market, citing the lack of affordable and suitable accommodation options.
The proposed floor space incentives aim to encourage the creation of more co-living spaces, particularly in areas where students are known to reside.
The draft changes will be available for public review and comment until 14 May 2024.
Residents and stakeholders are encouraged to visit the City of Sydney’s website for more information on the proposed amendments and how to provide feedback.
