First Low to Medium Residential Zone Homes in NSW Given Go-Ahead

Why It Matters

The approvals prove NSW’s LMR zoning can unlock premium density housing in affluent suburbs, expanding supply while reshaping price dynamics for high‑income buyers.

Key Takeaways

• Fortis approved Verano, 21 units + penthouse on 2,038 sqm site.
• Unit prices start at AU$4.5 m (~US$3 m) for two‑bedrooms.
• Liora project adds 12 luxury apartments, four‑bedrooms start AU$6.995 m (~US$4.6 m).
• Both developments target downsizers seeking spacious, amenity‑rich apartments.
• Approvals demonstrate NSW’s low‑to‑medium zoning policy gaining traction.

Pulse Analysis

The low‑to‑medium residential (LMR) zoning framework, introduced by the NSW government in early 2025, was designed to increase housing density without sacrificing neighborhood character. After a year of public debate and a flurry of mega‑block proposals, the policy has moved from paper to pavement with its first concrete approvals in Rose Bay. By allowing developers to replace a handful of detached homes with multi‑unit apartments, the reform aims to address the chronic shortage of premium housing while preserving coastal views and sunlight for existing residents.

Fortis’s Verano project at 10 Ian Street exemplifies the new model: a six‑storey tower delivering 21 two‑ and three‑bedroom apartments plus a full‑floor penthouse on a 2,038 sqm parcel. Prices begin at AU$4.5 million for a two‑bedroom unit, roughly US$3 million, and AU$6.5 million (≈US$4.3 million) for three‑bedrooms, positioning the development at the top of the market. Amenities such as 40 secure basement spaces, an outdoor dining area and a bocce court cater to affluent downsizers seeking space and lifestyle. The neighboring Liora development adds 12 larger units, with four‑bedroom apartments starting at AU$6.995 million (≈US$4.6 million), reinforcing the focus on high‑net‑worth buyers.

These approvals signal a turning point for the NSW housing market. By unlocking high‑density, high‑value projects in premium suburbs, the LMR policy could modestly increase supply of luxury apartments, easing price pressure for top‑tier buyers while generating higher land‑use efficiency for councils. Investors are likely to view the early approvals as a green light for similar ventures, potentially accelerating the rollout of LMR‑compliant sites across Sydney’s affluent precincts. However, the success of the model will depend on balancing community concerns about scale and preserving the character that makes these locales desirable, a challenge that will shape the next wave of approvals.