Can I Build a Duplex or Townhouse on My Sydney Property? The 2026 Low and Mid-Rise Reforms Explained

Yes, if your Sydney property is within 800 meters of a designated train station or town center, the 2026 Low and Mid-Rise (LMR) Housing Policy may allow you to build a dual occupancy, terrace, or townhouse—even if your local council previously banned it. These new state-wide rules override local council restrictions in R2 and R3 zones, unlocking thousands of blocks with a new minimum lot size of just 450 square meters for a dual occupancy.

What Are the 2026 NSW Low and Mid-Rise Housing Reforms?

To combat Sydney’s housing shortage, the NSW Government finalised aggressive new planning rules that strip away much of the red tape local councils previously used to block medium-density housing.

If your property sits in a mapped “Low and Mid-Rise Housing Area,” the state has introduced non-discretionary development standards. This means if your design meets the state’s specific criteria for height, floor space ratio (FSR), and lot size, the local council cannot refuse your application based on those factors. build duplex Sydney

How Do I Know if My Block is Within the 800m Transport Catchment?

The state government has designated 171 town centers and train, metro, and light rail stations across Greater Sydney, the Central Coast, and the Illawarra. If your property is within an 800-meter walking distance of one of these transport hubs, you likely qualify.

However, there are strict exclusions. Your block will not qualify under the new LMR rules if it falls into any of these categories:

• High-risk bushfire-prone land

• Flood-prone areas

• Heritage-listed items (general heritage conservation areas are often still eligible)

• Land exposed to high aircraft noise, build duplex Sydney 

Will These State Rules Override My Local Council’s LEP?

Yes. For years, many Sydney councils used their Local Environmental Plans (LEPs) to effectively ban dual occupancies in R2 (Low Density) zones by demanding massive minimum lot sizes—sometimes up to 1,000 square meters.

Under the 2026 reforms, the state government has mandated a baseline set of rules that override stricter council policies for eligible properties. Low and Mid-Rise Housing Policy NSW

Standard	Old Council Rules (Typical)	New 2026 State LMR Rules
Minimum Lot Size	600sqm to 1000sqm+	450sqm
Minimum Lot Width	15m to 20m	12m
Max Building Height	8.5m	9.5m
Permissibility in R2	Highly restricted	Permitted statewide