What is LMR Housing? Complete NSW Guide 2025

Low and Mid-Rise (LMR) housing represents the most significant change to NSW planning policy in decades. If you own land in certain Sydney suburbs or are considering property development, understanding LMR is essential. This guide explains what LMR housing is, who qualifies, and how to take advantage of this opportunity.

What is LMR Housing?

LMR stands for Low and Mid-Rise Housing, a NSW Government initiative designed to accelerate housing supply in well connected areas. The policy allows 2-4 storey residential development in specific suburbs, using streamlined approval pathways.

The core concept: Instead of lengthy Development Applications (DAs) that can take 6-12+ months, LMR eligible developments can use Complying Development Certificates (CDCs) that achieve approval in as little as 10 business days.

What LMR enables:

• Townhouses
• Terraces
• Semi-detached dwellings
• Dual occupancies
• Low-rise apartment buildings (up to 4 storeys)

Why Does LMR Exist?

NSW faces a housing supply crisis. The government has committed to delivering 185,000 new homes over five years, a target impossible to achieve with traditional development processes.

The problems LMR addresses:

• DA timelines of 6-12+ months create uncertainty
• Council assessment bottlenecks slow housing delivery
• Underutilisation of well connected residential land
• Need for housing diversity beyond high rise apartments

LMR’s solution: By pre approving certain designs (Pattern Book) and creating clear compliance pathways (CDC), LMR removes the uncertainty and delays that discourage medium density development.

Who Qualifies for LMR Development?

LMR eligibility depends on three key factors:

1. Location (171 Eligible Suburbs)

The NSW Government has designated 171 suburbs across Greater Sydney, Newcastle, and the Central Coast as LMR eligible. These suburbs were selected based on:

• Train station proximity
• Existing infrastructure
• Residential zoning

2. Distance from Train Station

Your site must be within 800 metres walking distance of an eligible train station. Important: This is walking distance, not straight line distance. Roads, rivers, and other obstacles affect the actual walking route.

3. Appropriate Zoning

Sites must be in residential zones suitable for medium density development:

• R2 Low Density Residential
• R3 Medium Density Residential
• R4 High Density Residential

Specific development rights vary by zone. R3 and R4 zones typically offer the greatest flexibility.

The 171 Eligible Suburbs

LMR eligible suburbs span Greater Sydney, Newcastle, and the Central Coast. Key clusters include:

Inner West Corridor: Burwood, Strathfield, Homebush, Rhodes, Meadowbank

Western Sydney: Parramatta, Westmead, Penrith, Blacktown

Northern Sydney: Epping, Chatswood, Hornsby, Gordon

South Sydney: Hurstville, Rockdale, Kogarah

Newcastle & Central Coast: Newcastle, Hamilton, Woy Woy, Gosford

Note: Full suburb lists are available from NSW Planning. Individual site eligibility requires confirmation of walking distance and zoning.

What Can You Build Under LMR?

LMR enables various dwelling types depending on your site characteristics:

Townhouses

2 to 3 storey attached dwellings, typically 3-4 bedrooms. Ideal for family living with private outdoor space. Multiple townhouses can be developed on larger lots.

Terraces

Attached dwellings with narrow frontages. Efficient use of land while providing ground level living and private outdoor areas.

Dual Occupancies

Two dwellings on a single lot, either attached or detached. Popular for owner occupiers seeking rental income or multi generational living.

Semi-Detached Dwellings

Dwellings sharing a common wall but with separate titles. Often developed as pairs on corner lots or larger sites.

Low-Rise Apartments

3 to 4 storey apartment buildings on appropriately zoned land. Higher yields than townhouses but different market positioning.

The Pattern Book: Pre-Approved Designs

The NSW Pattern Book is central to LMR’s streamlined approval process. It contains pre approved residential designs that meet all planning and building requirements.

How the Pattern Book works:

1. Designs have been assessed against planning controls
2. Building code compliance is pre verified
3. Design quality has been validated
4. Selecting a Pattern Book design removes assessment uncertainty

What this means for approval: When you use a Pattern Book design on an eligible site, the approval process becomes a compliance check rather than a merit assessment. This transforms approval from a negotiation into a verification exercise.

The 10-Day CDC Approval Pathway

Complying Development Certificates (CDCs) offer dramatic timeline advantages over traditional DAs:

Aspect	Traditional DA	LMR CDC
Assessment Type	Merit-based	Compliance based
Typical Timeline	6-12+ months	10 business days
Assessor	Council	Private certifier
Neighbour Notification	Required	Not required
Design Flexibility	High	Within Pattern Book
Outcome Certainty	Variable	High

The CDC process:

1. Select Pattern Book design suited to your site
2. Engage private certifier (like Mirvac with 5 Star iCIRT rating)
3. Lodge CDC application with supporting documentation
4. Certifier assesses compliance against predefined criteria
5. CDC issued within 10 business days if compliant

Who Should Consider LMR Development?

Landowners

If you own property in an LMR eligible area, you may be sitting on significant development potential. LMR enables:

• Developing your own site
• Partnering with developers
• Selling development ready land at premium prices

Investors

LMR creates investment opportunities:

• Faster development timelines improve returns
• Reduced approval risk lowers investment uncertainty
• Strong demand for medium density housing

Builders & Developers

LMR offers professional developers:

• Streamlined approval processes
• Pattern Book design certainty
• Modular construction compatibility

LMR and Modular Construction

LMR and modular construction are natural partners:

Parallel timelines: While LMR accelerates approvals, modular construction accelerates building. Combined, they can deliver completed homes in 6-9 months, compared to 18-30 months traditionally.

Pattern Book compatibility: Pattern Book designs are well suited to modular manufacturing. Standardised elements enable efficient factory production.

Quality alignment: Both LMR and modular construction emphasise predictable, compliant outcomes. Factory production ensures consistent quality matching Pattern Book specifications.

Common LMR Misconceptions

”My suburb isn’t listed, so I can’t benefit”

While LMR designation is suburb specific, the 171 suburbs cover substantial areas. Even if your exact suburb isn’t listed, neighbouring suburbs may be-creating spillover opportunities.

”LMR means lower quality housing”

The opposite is true. Pattern Book designs meet stringent quality standards. Modular construction often exceeds traditional on site quality. LMR streamlines process, not quality.

”I can only build what’s in the Pattern Book”

Pattern Book designs include significant customisation options. Facade treatments, colours, finishes, and some layout variations are available within compliance parameters.

”CDCs are risky because councils don’t assess them”

CDCs are assessed by private certifiers with professional obligations and insurance requirements. 5 Star iCIRT rated certifiers like Mirvac bring institutional rigour to every assessment.

Frequently Asked Questions

How do I confirm my site is LMR eligible?

Eligibility requires verifying: (1) your suburb is in the 171 designated suburbs, (2) your site is within 800m walking distance of a station, and (3) your zoning permits medium density development. Professional assessment is recommended to confirm all criteria.

Can I use my own design instead of Pattern Book?

Yes, but you’ll need traditional DA approval, which takes 6-12+ months. The 10 day CDC pathway requires Pattern Book compliance. For most developers, CDC advantages outweigh design flexibility trade offs.

What if my site has constraints (heritage, flooding, etc.)?

Site constraints may affect eligibility or development potential. Heritage overlays, flood zones, and easements require individual assessment. Some constraints exclude CDC eligibility entirely.

How much does LMR development cost?

Costs vary significantly by site, dwelling type, and specification. As a guide, modular townhouse development typically costs $2,800-3,500 per square metre for construction, plus land, professional fees, and contributions.

Getting Started with LMR

If you’re interested in LMR development, the logical first step is confirming your site’s eligibility and understanding its development potential.

Our free assessment includes:

• Eligibility verification (suburb, distance, zoning)
• Site constraint identification
• Development potential analysis
• Indicative timeline and investment requirements
• Introduction to our M-I-A partnership framework

Check your site’s LMR eligibility and discover what’s possible with Low and Mid-Rise housing development.