Transport-oriented development is changing the planning landscape around a growing number of Sydney railway and metro stations. While much of the discussion has focused on housing supply, the reforms also have implications for commercial property owners, investors, and developers assessing the future role of assets within these precincts.
The NSW Government’s Transport Oriented Development (TOD) program is designed to support higher-density, mixed-use development close to transport. Targeting 8 accelerated state-led precincts and 37 key station locations, the program introduces updated planning controls for land positioned within 400 metres to 1,200 metres of major transit hubs.
Under the TOD controls, residential flat buildings can be permitted in relevant residential and local centre zones, while shop-top housing can be permitted in local centre and commercial zones.
Where state TOD controls apply, provisions include:
However, some precincts are governed by alternative council planning controls or localized master plans, meaning the achievable density can vary significantly by location and site. For commercial property owners, this makes site-specific analysis increasingly important.
An existing retail, office, or mixed-use property close to a station may need to be considered not only on its current income and use, but also in the context of surrounding planning changes, potential redevelopment pathways, and the longer-term evolution of the precinct.
Being located near a station does not automatically create redevelopment potential.
Zoning, lot width, site configuration, existing improvements, heritage considerations, infrastructure, development contributions, and other planning requirements can influence what may be achievable.
The NSW Government also notes that where a property contains multiple land-use zones, TOD provisions may apply only to the portion of the site within a relevant zone. Alternative council schemes can introduce different requirements again.
This means assumptions based solely on proximity to transport can be misleading.
Sydney’s TOD program is creating a more dynamic planning environment around established transport centres across both accelerated precincts and key station catchments. For commercial property owners, the key issue is not simply whether an asset sits within a growth precinct, but how changing planning controls interact with its existing use, income profile, land configuration, and longer-term strategy.
Owners of commercial property near identified TOD precincts should understand the current planning framework before making decisions about holding, leasing, repositioning, or divestment.
Planning changes may create new considerations for some assets, but their commercial relevance will depend on the individual property and should be assessed through appropriate planning and property due diligence.
For owners reviewing the strategic position of a commercial asset, RWC SC can assist with market positioning, asset strategy, and commercial sale or leasing considerations.
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