Central Sydney’s Rising Star: A Fresh Horizon in Build-to-Rent Living

Written by

Charbel Abousleiman
Urban Planning Lawyer & Buyers Agent

29/04/2024

City of Sydney is proposing to make impactful changes to Sydney LEP that will effectively support build-to-rent and co-living housing in Central Sydney, with the public able to provide feedback until 14 May 2024.

Although all forms of housing development are permitted in Central Sydney, Sydney LEP incentive accommodation floor space provisions under clause 6.4 currently do not apply to residential development. The incentive accommodation floor space for residential uses were switched off to support the delivery of the approved employment targets for Central Sydney.

However, due to the strong demand for rental housing and the recent amendment to the Housing SEPP, it is considered opportune to switch on incentive provisions for BTR housing.

Investa’s 39-storey BTR tower above Sydney Metro Gadigal Station (formerly Pitt St Station)

City of Sydney is proposing the following changes to Sydney LEP:

1. amending clause 6.4(1) to include a temporary accommodation floor space incentive in Central Sydney for BTR housing in the following areas on the FSR map:

  • Area 1 – 4.5:1
  • Area 2 – 6:1
  • Area 3 – 3.5:1
  • Area 4 – 1.5:1

 

2. introducing a temporary accommodation floor space incentive in Central Sydney for co-living in Haymarket (area 4 of the FSR map) of 1.5:1,

3. clarifying that the temporary accommodation floor space incentives apply for applications lodged within 5 years from these amendments being made,

4. amending clause 6.4 by introducing a subclause to specify the requirements for active uses on the lower levels of BTR and co-living housing in the SP5 zone by requiring these types of accommodation of having active uses and ancillary uses at lower levels to encourage the presence and movement of people,

5. including a parking rate of 0.2 spaces per dwelling for BTR housing.

If implemented, these changes will encourage BTR and co-living housing in Central Sydney and provide more certainty for developers on the maximum floor space and supporting controls for such accommodation.

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