Sydney Council is proposing a number of key changes to Central Sydney’s planning controls to improve affordability and speed up the approval process.

6 key changes are proposed.

1. Build-to-rent and co-living is back in the CBD

After removing residential floor space incentives over the last 2 years, City of Sydney is now looking to re-introduce accommodation floor space for BTR and co-living in Central Sydney for 5 years only. This will make floor space outcomes generally consistent with other uses like commercial and hotels, with varying FSRs depending on the Area. However, these provisions will not apply to tower cluster sites. This is a direct response to the record low rental vacancies.

2. Streamlining design competition rules

A few helpful changes to reduce approval delays have been introduced in relation to the design competition process. These include:

• increasing the threshold for a competition for buildings over 25 metres to now 35 metres,
• offering incentives of both 10% height and 10% floor space (previously an applicant can only benefit from one or the other), and
• allowing a design review process for full affordable housing projects instead of a design competition. 

3. Flexibility for DAs

Council will be given the power to waive the requirement for a development plan or Stage 1 DA where this would be unreasonable or unnecessary. This is aimed at cutting unnecessary planning processes that delay projects and add very little value to the overall project outcome. If Council discretion is used properly, this change will have a positive impact.

4. Additional permitted uses

An important proposed change is to increase the range of uses (beyond retail and commercial uses) that can quality for accommodation floor space, such as places of public worship, registered clubs and other uses, which will assist activation of mixed-use projects in Central Sydney.

5. Green roof incentive

Council is proposing to allow some flexibility of building height controls to accommodate green roofs and ancillary structures as part of communal open space. This will not count as gross floor area.

6. Dwelling retention

New provisions are proposed to prevent the loss of dwellings in an apartment refurbishment or redevelopment. This will prevent developers from reducing the existing number of apartments by more than 1 dwelling or 15% of dwellings, whichever is greater. This new clause targets buildings which are being converted from smaller units into larger apartments.

This planning proposal is expected to be put on public exhibition in the first quarter of 2024.