New planning laws have led to heightened developer interest in Double Bay, with property owners now reassessing the value and potential of their land.
Zoning Reforms Reshape Development Potential
The NSW government introduced new planning laws on 28 February as part of a broader strategy to address the state’s housing shortage. These laws apply to areas located within 800 metres of 171 designated train stations or shopping centres across Sydney, Newcastle, Wollongong, and the Central Coast.
Under the new framework, buildings of six to eight storeys can be constructed within 400 metres of key hubs, while development of up to three storeys is permitted between 400 and 800 metres. Changes to floor space ratios and dual occupancy rules are also increasing development capacity across multiple lots.
How Double Bay Fits the Picture
Double Bay is among the suburbs impacted by the planning reforms. While the changes are intended to improve housing supply, local real estate agents anticipate that three-bedroom apartments in new developments around Double Bay may be priced between $5 million and $6 million—and even higher if properties offer views. This has raised questions about whether the policy will enhance housing affordability in high-end areas.
Developers are now targeting eligible locations for redevelopment, including amalgamated sites. In other parts of Sydney, some property owners have doubled their sale price by consolidating adjoining lots for larger-scale projects.
Wider Movement Across Sydney
Similar activity is unfolding in other eastern suburbs including Rose Bay, Edgecliff, Bondi Junction, and Maroubra. In Rose Bay alone, 28 homeowners have combined their properties, with at least 60 amalgamations reported in one three-block radius.
In Gordon, developers are securing options on homes near train stations, with some properties reaching prices of up to $12 million. Meanwhile, in Mosman, concerns have been raised over six-storey buildings being planned in low-rise areas near Balmoral Beach.
Mixed Sentiments Among Property Owners
While some owners welcome the financial benefits, others are facing limitations. In Gordon, heritage-listed homes are excluded from redevelopment despite being located in newly eligible zones. Affected residents have raised concerns about loss of privacy, overshadowing, and future property values.
Local councils, including Mosman, have indicated that developments meeting the new planning criteria cannot be rejected on the basis of height or density. However, objections may still be submitted on other grounds—such as view obstruction or privacy impacts—though how they will be assessed remains unclear.
Policy Sparks Activity but Raises Questions
The new planning rules mark a major shift in development controls as the state government seeks to ease housing pressures. In areas like Double Bay, the reforms have triggered immediate developer activity and multi-million-dollar transactions. However, uncertainty remains around affordability outcomes, the inclusion of heritage properties, and long-term impacts on urban character.
Published 13-Apr-2025
