What the Low and Mid-Rise Housing Policy Means for Sydney’s Eastern Suburbs
The NSW Government’s Low and Mid-Rise Housing Policy (LMR Policy) is reshaping the development landscape across Sydney, and the Eastern Suburbs are no exception. With new planning controls now in effect, suburbs like Bondi Junction, Rose Bay, Double Bay, Edgecliff, Paddington, Randwick, Kensington, Kingsford, Coogee, and Maroubra are seeing a surge in interest from developers and investors alike.
But while the headlines focus on housing supply, the real story for landowners is about value, and how to unlock it.
Policy Impact: A New Era for Eastern Suburbs Zoning
Under the LMR Policy, properties within 400 metres of town centres or train stations in Woollahra, Waverley, and Randwick may now be eligible for significantly more intensive development. These changes introduce new pathways for medium density housing, including apartments, terraces, and townhouses, that were previously off limits in many parts of the East.
This isn’t just a planning update. It’s a fundamental shift in what’s possible on your land.
Value Uplift Potential: More Than Just Bricks and Mortar
For many landowners, the LMR Policy represents a rare opportunity to unlock substantial gains in land value. By enabling more floor space and greater building heights, the policy increases what developers are willing to pay, but only if that potential is properly understood and strategically realised.
We’ve seen first hand how early movers in other regions have secured premium outcomes by acting decisively and with the right advice.
Location Specific Advantage: Why the East Stands Out
The Eastern suburbs are among Sydney’s most tightly held and desirable areas. Proximity to beaches, schools, retail, and transport makes these locations especially attractive to developers seeking high demand, high return projects.
Properties within walking distance of hubs like Rose Bay, Bondi Junction, Randwick, and Coogee are already drawing unsolicited interest, often before owners have had time to assess their options.
Complexity in Execution: It’s Not as Simple as It Seems
While the policy opens doors, navigating the path to value is far from straightforward. Planning rules differ between Woollahra, Waverley, and Randwick councils. Site specific constraints, such as slope, access and infrastructure, can dramatically affect feasibility.
Many landowners are surprised by how much risk and complexity is involved. Without a clear strategy, it’s easy to leave money on the table.
Maximising Value Through Strategic Understanding
Developers approach sites with detailed feasibility models, assessing yield, cost and risk with precision. Most landowners don’t have access to this level of insight, and that’s where value is often lost. Understanding how developers think and analyse properties is critical to negotiating from a position of strength.
Independent Advice: Your Best Asset
Real estate agents and developers each have their own objectives, and while agents have professional obligations, their role is often focused on completing a transaction rather than maximising your long term outcome. That’s why independent, commercially focused advice is so important. It helps you:
Understand your property’s true development potential
Know with clarity and confidence how to maximise your position
Structure deals that protect you as well as optimise your position
Timing and Strategy: When You Act Matters
Engaging too early, or too late, can materially affect your return. The best outcomes come from a considered strategy aligned with your goals, not reactive decisions based on unsolicited offers.
Case by Case Assessment: No Two Sites Are the Same
Every property is different. Effective advice considers zoning, market conditions, and ownership structure. Whether you’re a single owner or part of a group of neighbours, there’s no one size fits all approach to maximising value.
Caution: Direct approaches from developers
Many developers base their business model on direct approaches to owners to get better price and terms than if they were to buy openly on the market. Negotiating with developers directly almost never results in the landowner receiving the best price and terms. We commented about this in another blog Approached by a Developer?
Final Word: Don’t Miss the Moment
The LMR Policy is a once in a generation opportunity for many Eastern Suburbs landowners. But the window won’t stay open forever. As the market adjusts, early movers are likely to secure the best outcomes.
If you own land in Bondi Junction, Rose Bay, Double Bay, Edgecliff, Paddington, Randwick, Kensington, Kingsford, Coogee, or Maroubra, now is the time to understand your options, and act with confidence.
Contact us today for independent, expert advice on how to make the most of this opportunity