A PLANNING policy introduced by the NSW government that will allow multi-storey apartment buildings to be built on rezoned land around nine train stations in Newcastle and Lake Macquarie is underway.
Earlier this week, the Newcastle Herald reported the NSW government had increased proposed height limits under the scheme.
The changes mean developers can apply to build eight-storey buildings within 400 metres of the train station.
The new planning controls apply immediately to train stations at Newcastle Interchange, Hamilton, Adamstown, Kotara, Cardiff, Teralba, Booragul and Morisset.
It will take effect in Cockle Creek from April 2025.
So, what does it mean for those who own property in the 400-metre radius of the nine train stations?
A major factor in the Newcastle and Lake Macquarie region is the feasibility of developing in areas around train stations such as Hamilton and Kotara.
Suitable land sizes are crucial in order to support the development of high density housing around the nine transport hubs.
Property owners in the zoned areas also need to be willing to sell.
Selling with the neighbours
"It's like when they did the master plan for Wickham and Newcastle West with the big high rises, you can have higher density development but if you don't have the land size, then you can't get the height anyway," Harcourts Newcastle real estate agent Joel Soldado said.
"It will be a similar situation around these transport hubs whereby they will encourage people to amalgamate properties together so they can have the floorspace to then be able to get the desired heights.
"Only at that point will the properties be worth more because then they can get higher density development on those particular sites."
Planning Minister Paul Scully and Premier Chris Minns launched the Transport Oriented Development program in December in an attempt to ease the housing crisis, with a goal to deliver an estimated 170,000 homes throughout Sydney, the Illawarra, the Hunter and Central Coast.
The policy allows for apartment buildings in residential and "local centre" zones and shop-top housing in commercial zones within 400 metres of train stations.
"It is good news and it might be better news for some than others, depending on how these things are put together," Ray White Newcastle real estate agent Brett Bailey said.
"If there is older, established housing stock on smaller residential blocks within that 400 metre zoning, it might be harder to put potential development sites together than, say, if there is an existing semi-commercial type arrangement.
"If it is possible for a developer to piece together a big enough development site by putting together enough of these residential properties then yes, the owners could potentially be sitting on a goldmine.
"However, the developer has to be prepared to buy multiple residential dwellings on smaller blocks than, for example, one larger semi-commercial type property."
On Monday, the government confirmed developers can lodge applications for sites around the first 18 train stations included in the new planning controls from May 13.
But it could be some time until new high density housing developments in these areas become a reality.
The program has a timeline of 15 years.
Homeowners investigating options
"I have had a few people call me and ask for appraisals because they have come across this news of the rezoning and they're wanting to know what that will do to house prices for those in that 400-metre radius," Mr Soldado said.
"The biggest thing to take out of this is that you would need to jump on board with the neighbouring properties to get more out of the zoning that they are proposing.
"The honest truth at the moment is that for standard size residential properties it is very hard to know how it will affect values and it is still at this infancy stage where we just don't know enough.
"You would like to think that it is going to have some sort of effect but I don't think it is going to happen overnight."
- Readers can now subscribe to Australian Community Media's free weekly Newcastle Herald property newsletter.
The newsletter will keep you informed about what's currently making headlines in the region's real estate market and beyond.
To sign up, click here, scroll down, enter your details, click the 'property' box and then click 'subscribe'.
