Why Now Is the Best Time to Build: Unlocking the Potential of the Low-Rise Housing Diversity Code in NSW

Adam Bahrami
Jun 23
4 min read

If you've ever thought about developing your own property, maximising the value of your land, or building a multi-dwelling project for wealth creation or family legacy, the time to act is now.

Thanks to the NSW Government’s Low-Rise Housing Diversity Code (LRHDC), small to mid-sized property development has never been more accessible. In the midst of a housing affordability crisis and policy reform era, this code offers one of the most powerful opportunities for everyday landowners and developers to fast-track construction, diversify housing, and generate new revenue streams—without the usual planning delays.

This in-depth article explores exactly what the Code enables, the legislation that underpins it, who it’s for, how subdivision and CDC approvals work, and why it’s a limited-time window that savvy landowners should not ignore.

What Is the Low-Rise Housing Diversity Code?

The Low-Rise Housing Diversity Code, formerly known as the Medium Density Housing Code, was introduced under the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008, commonly referred to as the Codes SEPP.

Its goal is simple but powerful: to fast-track approvals for a broader range of well-designed low-rise housing across NSW.

The Code applies to:

Dual Occupancies (attached or detached)
Manor Houses (3–4 dwellings, with at least one dwelling above another)
Terraces (3+ dwellings side-by-side, with street frontage)

If your development proposal complies with the Code’s criteria, you can bypass the traditional development application (DA) process and obtain a Complying Development Certificate (CDC) in as little as 20 days.

The Code applies to properties within land zoned R1, R2, R3 and RU5, where the local council’s LEP permits these housing types.

What Is the Low-Rise Housing Diversity Code?

Why Is the Code a Game-Changer for Property Development?

This Code removes the most frustrating bottlenecks for small-scale developers: time delays, uncertainty, and council red tape. Here's why it matters now more than ever:

Fast-Tracked Approvals

No more waiting 6–12 months for DA approval. CDC applications under the Code can be issued within 20 days by a council or accredited certifier.

More Development Types Are Now Permitted

You can develop:

Attached Dual Occupancies – two side-by-side homes sharing a wall
Detached Dual Occupancies – two separate homes on one lot
Manor Houses – 3–4 stacked dwellings in a single two-storey building
Terrace Housing – 3+ dwellings with individual ground access, facing a road

These configurations allow greater design flexibility, improved land utilisation, and access to multiple revenue streams from one site.

Subdivision Is Now Easier

The Code allows Torrens title and strata subdivision of these housing types as part of the same CDC process, provided the site complies with council zoning.

Dual occupancies can be subdivided into two separate titles
Terraces can be subdivided into individual Torrens lots
Manor houses can be strata subdivided

This creates immense value—because now, you’re not just building homes. You’re creating saleable titles.

Why Is the Code a Game-Changer for Property Development?

Where Does the Code Apply?

The Code applies across all local government areas in NSW, provided the Council’s Local Environmental Plan (LEP) permits:

Dual occupancy (attached or detached)
Manor houses
Multi-dwelling housing (terraces)

The property must have frontage to a public road and must not be a battle-axe lot. It must also be connected to sewer infrastructure and be outside heritage, environmental, or bushfire-prone land.

Where the Code Does NOT Apply

Despite its broad application, complying development under the Code is not allowed in:

Heritage conservation areas or heritage-listed land
Land reserved for public purposes
Unsewered land or battle-axe lots
Flood control or bushfire-prone areas (unless specific criteria are met)
Environmentally sensitive areas (wetlands, drinking water catchments, endangered habitats)

These exclusions protect ecologically or culturally sensitive sites, but most suburban land in Sydney and major regional centres will be eligible.

What Are the Design & Planning Standards?

To obtain a CDC, the proposed development must comply with both:

The development standards outlined in Part 3B of the Codes SEPP
The detailed Low-Rise Housing Diversity Design Guide

This includes:

Lot size and width requirements (e.g., 400m²+ minimum area for dual occupancies)
Height limits (max 8.5m) and 2-storey maximum
Primary and secondary street setbacks
Rear and side boundary setbacks
Private open space and landscaping requirements
Natural light, ventilation, and visual privacy

A qualified designer (registered architect or accredited building designer) must submit a Design Verification Statement confirming that the proposal meets all criteria.

What Are the Design & Planning Standards?

Why This Is a Rare Opportunity (And Why You Should Act Now)

Over the past decade, property owners and developers in NSW have faced increasing red tape, approval delays, and restrictive zoning laws.

The Low-Rise Housing Diversity Code flips this trend. It creates a predictable, faster, and state-wide compliant pathway to building quality, medium-density housing that is more affordable and liveable.

Why it matters now:

Further deferrals to the Code will not be granted. It’s operational state-wide.
The housing supply crisis is growing, with NSW targeting 377,000+ new homes by 2029.
Interest in medium-density development is rising. Being early gives you the edge.
Land values are increasing. Unlocking equity now could mean huge uplift before the next market cycle.

Whether you’re a downsizer, a family looking to build a duplex, or an investor seeking multiple incomes from one site—this is your moment.

How OwnerDeveloper Helps You Use the Code to Your Advantage

At OwnerDeveloper, we specialise in helping landowners, builders, and aspiring developers maximise site potential using the Low-Rise Housing Diversity Code.

Our expert team can:

Conduct site feasibility checks
Confirm zoning and LEP compliance
Design Code-compliant housing types
Coordinate CDC approvals through private certifiers
Manage the full construction process from start to finish
Deliver fixed-price packages and due diligence tools to simplify your development journey

We’ve helped countless clients take underutilised blocks and turn them into profitable, multi-dwelling developments—with less stress and faster timelines.