Message from the Mayor - 25 June 2025

Published on 25 June 2025

In last week’s column I addressed the difference between housing affordability, acknowledging the impact increased rental costs and property prices are having on the community, and affordable housing (the provision of rental accommodation for low and middle income earners and essential workers). There is a major distinction, which is often conflated, between housing, which is affordable to buy, as compared to affordable housing as defined by the legislation.

This week I am writing about the NSW Government’s Low and Mid-Rise Housing Policy (LMR) and why we have shared our objections with the Minister for Planning and Public Spaces. The reforms will increase the permitted residential density (height and floor space ratios) around town centres with no requirement to provide a mix of diverse housing stock at an affordable price.

Why the Government’s policy will result in more expensive, not cheaper housing

These reforms will not make it easier or cheaper to buy into the market.

We are already seeing bulk purchases of one-to-two storey houses to make way for luxury apartments in areas like Rose Bay and we are receiving lots of enquiries from developers who are keen to capitalise on planning changes in locations where 6 storeys are now allowed.

By using the NSW Housing SEPP (State Environmental Planning Policy) affordable housing bonus applicable under LMR, heights of up to 8 storeys will be allowed. Developers will be able to establish for-profit housing to lease a small percentage of units for a fixed period, after which time, the tenants will be required to vacate so the developers can on-sell those units.

All local governments have a responsibility to deliver housing, which Woollahra, as one of the highest density Local Government Areas in NSW, has done year-on-year. However, through these changes, the NSW Government has made one of the wealthiest areas in the country even wealthier overnight. This extraordinary capital gain, gifted by the Premier and Planning Minister, does not assist people trying to enter the housing market, especially young people. The creation of more luxury apartments will not address the housing affordability crisis.

A one-size-fits-all planning approach will drastically impact Woollahra

I am not critical of developers taking advantage of favourable planning controls gifted to them by the Premier and Minister. I am critical, however, of the NSW Government’s one-size-fits-all approach which entirely ignores the importance of community consultation, our local planning controls, the need to protect local amenity, heritage, community concerns regarding flooding and traffic congestion, and lack of infrastructure.

The characteristics that make Woollahra and many other locations throughout Sydney special – tree-lined streets, heritage features and pedestrian amenity – will disappear. To be replaced with taller buildings, less trees, more traffic congestion, generic housing stock and greater demand on existing infrastructure and services.

We are committed to supporting housing growth, but it must be done in a way that respects the existing character of our community, and recognises the impact on amenity and infrastructure and takes into account the unique challenges of each location. This is why Woollahra Council has developed strategic plans that allow for growth without the need to sacrifice high planning standards and community benefits.

We will continue to oppose the NSW Government’s low and mid-rise housing reforms at every opportunity. You can join us by emailing:
The Hon Paul Scully MP Minister for Planning and Public Spaces office@scully.minister.nsw.gov.au
The Hon Chris Minns MP Premier of NSW 
premier@dpc.nsw.gov.au

Concept image: The bulk and scale of housing development that could be constructed around the Rose Bay centre and foreshore as a result of the Low and Mid-Rise Housing Policy