Sydney’s transport hub projects are set to reshape commercial property significantly.
Strategic planning and rezoning around key stations are unlocking new investment opportunities and shifting how we live, work, and do business.
What is Transport-Oriented Development?
The NSW Government’s Transport-Oriented Development (TOD) Program is a strategic land-use planning approach that promotes sustainable, mixed-use development centred around public transport. By increasing housing density and encouraging commercial activation near transport hubs, the goal is to better connect people, jobs, and services, now and for future generations.
Where It’s Happening
There are two parts of the TOD programme.
Stage 1: Rezoning High-Growth Precincts
Planning NSW has identified eight high-growth areas near key transport hubs:
- Hornsby
- Macquarie Park
- Kellyville
- Bella Vista
- Bankstown
- Crow’s Nest
- Homebush
- Bays West (Rozelle/White Bay Power Station)
These precincts are being rezoned to support the development of approximately 60,000 new homes over the next 15 years, all within walking distance to these key train stations.
Seven of these rezoning processes have already been finalised, fast-tracking housing development in these areas. Public exhibition of the “Bays West TOD” rezoning is expected later in the year. It will track on a different timeline from the other TOD Accelerated Precincts due to the need to resolve working harbour and port uses.
Stage Two: Expanding the Policy Framework
The second stage of the TOD initiative (as reported in the March Edition of Last 30) amends the existing State Environmental Planning Policy (Housing) - Chapter 5, Transport-Oriented Development (also known as the Housing SEPP). This update will;
- Increase allowable housing density within 400m of 37 station precincts
- Permit shop top housing in Local Centre and Commercial Zones
The Commercial Property Impact
For commercial property stakeholders, the TOD initiative brings opportunity. As high-density residential projects spring up near well-connected train stations, developers are set to deliver mixed-use buildings that blend retail, office, and residential spaces.
Existing commercial properties within these rezoned areas — many of which are zoned SP4 – Enterprise, E1 – Local Centre, R1 – General Residential, and MU1 – Mixed Use, will likely see:
- Increased demand and rental yields
- Greater foot traffic and amenity activation
- Rising land values and capital growth potential
Some precincts are approved for floor space ratios (FSRs) of up to 8.5:1, creating room for significant uplift in built form and commercial viability.
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