The Impact of Big Sydney: Key Changes You Need to Know

The NSW Government has announced 5-year housing completion targets to address the chronic shortage of housing in the state.

The aim is to deliver 377,000 new homes by increasing density in existing suburbs.

To achieve this, the government is incentivizing local councils and LGAs through four key initiatives:

• Rezoning areas near transport, reducing minimum lot sizes for subdivisions, and increasing density limits.
• Setting specific housing targets on a council-by-council basis.
• Allocating a $200M reward for councils that add houses, with funds dedicated to local infrastructure.
• Establishing a $1.6B accelerated infrastructure fund to fast track grants for upgrades to sports fields, bike paths, roads, and more.

The table below provides a snapshot of housing targets across key Sydney councils.

The discrepancy in these housing targets is certainly interesting.

We can only imagine that the targets are a result of how dense each LGA (Local Government Area) already is, the existing access to transport, and the extent to which the LGA has lobbied to resist density.

LGA	CURRENT DWELLINGS	NEW COMPLETED HOMES BY 2029	% OF INCREASE OVER 5 YEARS
Bayside	73,897	10,100	13.66%
Blacktown	133,985	21,400	15.97%
Campbelltown	63,123	10,500	16.60%
Canterbury-Bankstown	133,444	14,500	10.80%
City of Sydney	138,184	18,900	13.70%
Inner West	85,455	7,800	9.10%
Ku-ring-gai	45,892	7,600	16.50%
Lane Cove	17,341	3,400	19.60%
Mosman	13,399	500	3.70%
Northern Beaches	105,115	5,900	5.60%
Penrith	81,253	8,400	10.30%
Randwick	59,971	4,000	6.70%
The Hills	64,084	23,300	36.30%
Waverley	32,852	2,400	7.30%
Woollahra	26,589	1,900	7.10%

These are only targets, and even Minister Chris Minns acknowledges they are aspirational goals.

The $200M allocated to incentivize councils raises questions, as it equates to about $500 per home approved and built—a sum far from life-changing for councils.

Another challenge lies in how developers and acquirers will gain access to suitable land.

Sydney’s housing shortage and ever-increasing prices partly result from people hesitating to sell because they lack alternative housing options.

As more builders and developers compete to acquire sites, competition with regular homebuyers intensifies, pushing up prices further. This means supply and affordability may worsen before improvements are seen.

A new Sydney is on the horizon—a bigger Sydney and, hopefully, a better Sydney.

But for that vision to materialize, it’s essential to build the right typologies and mixes of housing, located where they are needed, constructed to a quality standard, and ultimately made available to citizens at an accessible price.

For more information or assistance, contact Ash Buyers Agency at +61 434 111 200.