The NSW Government has finalised rezonings across four Sydney transit precincts – St Marys, Belmore, Lakemba and Croydon – as part of its Transport Oriented Development (TOD) program. 

This will unlock space for approximately 31,000 new homes, aimed at easing the city’s housing shortages and enabling more people to live close to transport, jobs and services, thereby reducing reliance on cars.

While seen as a positive step for the city, rezoning can have significant and sometimes complex implications for buyers, sellers and landowners.

What rezoning means for buyers

If you’re considering buying property in one of these rezoned areas, you could benefit from:

• More housing choice. Rezoning often leads to new housing developments, which can increase supply and give buyers more choice in new locations.
  
• Potential for strong capital growth. Properties in newly rezoned areas, especially near planned transport upgrades, amenities or business hubs, often attract strong demand, which may support long-term value growth. 

• Opportunity to build or develop. Owners and developers can take advantage of new development rights that allow them to build on or subdivide land.

However, there are risks to consider.

• Construction and infrastructure delays. Rezoning doesn’t always mean immediate development. Projects may be delivered over a long period and require the construction of infrastructure such as roads, utilities and other services. When conducting due diligence, check project timelines and infrastructure delivery commitments.

• Increased market competition. Areas identified for rezoning can draw increased interest from developers and investors, leading to stronger competition and higher entry prices.

Implications for sellers

If you own property in a rezoned precinct and intend to sell, you could benefit from:

• Boosted market interest: Planned higher-density or mixed-use development can make your property more attractive to a broader range of buyers, including investors and developers. 

• Collective sale. If your property falls within a redevelopment site, you and your neighbours could consider banding together to sell the whole block to a developer, which can sometimes be more profitable than selling individually.

• Stronger pricing: Increased demand can be in your favour. Even being near rezoned land bringing new amenities and transport links can boost the value of your home.
  

On the downside, rezoning can introduce uncertainty if development timelines are unclear, outcomes change, or community opposition delays progress. This can affect buyer confidence and result in your property sitting on the market for longer than expected.

Engage early with your local council or planning authority, and developers (if applicable), to understand project timeframes and potential issues that could impact your property’s value or marketability.

Implications for landowners

Rezoning can unlock new development options and flexibility for landowners and developers. It can enable uses that were previously not permitted, for example, residential development on land previously zoned for commercial or low-density uses.

Landowners could also choose to hold the land for future development, partner with developers, or sell to capitalise on rezoning gains.

Landowners and developers should, however, be aware of the more complex rules attached to the new controls. These could include:

• Tax and financial implications. Rezoned land may attract different land tax assessments or developer contributions, affecting holding costs and profitability.
  
• Infrastructure obligations. Under NSW’s Environmental Planning and Assessment Act 1979, councils can require developers to pay infrastructure contributions to help fund roads, parks and community facilities.

If you own land in a rezoned area, seek specialist property law advice to understand what the new planning controls allow, what your obligations may be and how it could affect your financial outcomes. 

For expert legal guidance on buying or selling in a rezoned district in NSW, contact Outwest Legal. Book a consultation with one of our property law professionals who can help you understand the changes and how it impacts property transactions.