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Communal Space Of Botany Road Apartment Development

Sydney’s Changing Property Development Landscape

Residential & Commercial Property Developers Sydney & Western Sydney

Sydney house prices continue to soar, nearing previous highs as growth continues unfazed 

despite a gradual increase in properties for sale and higher interest rates. To combat this, several new developments are on the horizon and planning controls to help prevent a net reduction in dwellings for new housing developments. However, the question is whether they will be enough to satisfy demand and offer more affordable housing in Sydney. 

Discover more about potential solutions to Sydney’s housing crisis including halting the demolition of old housing, adding granny flats to existing properties, new planning controls, and the wider adoption of build-to-rent developments in Australia.

New Housing Developments Sydney 


To rectify Sydney’s housing shortage, several upcoming and potential housing developments are in the works. From commissioning more build-to-rent properties to changing planning controls, there are residential developments and commercial developments that could change Sydney’s property development landscape through more new homes.

Planning Controls


Following a recent meeting, Woollahra Council is suggesting several measures to ensure housing shortages and affordability issues don’t drive more people out of the area. With residential apartments being knocked down and replaced with large, luxury units, shortages could continue to grow, however, a proposed alteration to the Local Environment Plan could prevent a net reduction in dwellings in the area. Having delivered just 23 new affordable homes in over a decade, Woollahra needs change, and taking matters into their own hands with a Social Impact Statement could prompt other councils to do the same. In the Eastern Suburbs, Waverley Council is pursuing similar measures, and the Eastern Sydney council is in the process of finalising details, which may see this acted upon.


The City of Sydney is also considering planning rules to stop developers from replacing older residential blocks with high-end apartments as an increasing number of proposals are lodged. However, net dwelling loss isn’t always bad. When small apartments are converted to be more suitable for families, it can add housing diversity, which is important in many Sydney suburbs.A blanket rule may not work in all areas, however, consideration could protect more suburbs from pricing out a large share of the population.




Posited as a potential fix for the housing crisis, build-to-rent (BTR) apartments could provide more affordable housing to many, however, Australia is currently far behind other nations – including the UK and USA – in offerings. With flexible lease agreements providing greater security of tenure thanks to longer terms and feeling more like a home as tenants don’t need pre-approval to decorate their apartment or to have pets, BTR has several positives. With 8,350 dedicated BTR apartments currently under construction nationally and 12,900 units approved for future development from property development companies, it offers enormous potential in its alternative to traditional homeownership and conventional rental properties


Granny Flats


With vacancy rates at historic lows at less than 1 per cent, many are looking for affordable housing and granny flats are an untapped option that could boost housing supply. Household formation is set to outpace Sydney’s supply in 2025, however, granny flats could ease the housing crisis. In Sydney, more than 242,000 properties were suitable for granny flat development opportunities, the most in the nation. Adding a granny flat to an existing property can increase home value by more than the cost of construction, offering a win-win for homeowners as well as renters who are looking for a more affordable housing solution. Brisbane City Council and the ACT government have announced changes that make renting out a secondary dwelling simpler, which could soon be seen in NSW. 

Solving the housing crisis in Sydney cannot happen overnight, however, through innovation and revisiting old concepts can look to revitalise housing developments and ensure more affordable properties for many Australians. From the implementation of planning controls, property development companies creating build-to-rent developments, and wide adoption of granny flats, we could soon see more affordable housing in the city. 

Building New Housing Developments Sydney


If you want to construct new housing developments in Sydney, HYG can help. With a strong track record of success delivering several award-winning projects across Sydney, we can help you navigate Sydney’s real estate market to build your dream home or investment opportunity. 

Whether you’re looking to buy or to capitalise on the growing Sydney real estate market by developing your existing property, get in touch with our knowledgeable team today.