Terraces in the Low and Mid Rise Policy

We at PropCode have been getting lots of questions from people across NSW about building terraces under the new Low and Mid Rise rules. There seems to be some confusion on this topic, so please consider this explanation:

0. A bit of background - “Multi dwelling housing” refers to 3 or more dwellings on one lot, other than an apartment building. This includes the typology of terraces, which are usually be built as a single building/project on a parent lot and then subdivided.

1. Many NSW LEPs prohibit multi dwelling housing in their R2 Low Density Residential zones. Only two Sydney area LEPs, Sutherland and Manly (plus Liverpool Growth Centres), make them permissible in R2.

2. The new LMR policy creates overriding permissibility in the R2 zone for medium density like multi dwelling housing within the LMR catchments. It also establishes a few key numerical controls for DAs for these typologies.

3. The fast-track CDC approval pathway has its own numerical controls in the Codes SEPP (Part 3B) that are not overridden by LMR. Any CDC approval for medium density would use the CDC numerical controls, not the LMR controls.

4. CDC uses the same base permissibility that applies to the DA pathway. (See Codes SEPP 1.18(1)(b).) Of course, in determining this, SEPP permissibility would override LEP prohibition.

5. That means the new LMR permissibility could open up the CDC approval pathway on that land if the project follows all the CDC controls.

6. There’s a slight wrinkle - with the LMR policy, the new *dual occupancy* permissibility is specifically excluded from being used for CDC. (See Codes SEPP 1.19(3B).) There is no similar exclusion for other typologies like terraces.

7. Thus terraces can now be approved via CDC in R2 zones in LMR catchments, provided they follow all the CDC land requirements (e.g. 21m lot width, not the LMR 18m lot width) and CDC built form controls.

With PropCode's database, I found that around 5,000 properties in R2 zones in LMR catchments are now eligible to do terraces via CDC.

To find out whether your property is one of them, get an instant answer on PropCode with our CDC eligibility report.

Or order our LMR bulk dataset to find sites where you can develop terraces with fast CDC approval.