New Developments in Sydney 2025: What’s on the Horizon?

With the Albanese Government securing a second term in a landslide federal election victory, and the Minns Labor Government continuing its ambitious NSW housing and infrastructure agenda, 2025 is shaping up to be a turning point in Sydney’s development landscape.

Governments at both state and federal levels are aligned in their mission: build more homes, accelerate infrastructure, and tackle affordability head-on. For developers, homebuilders, and investors, the opportunities—and challenges—are significant.

So what exactly lies ahead?

1. Transport-Oriented Development (TOD): Compact Growth in Connected Precincts

NSW’s TOD Program is one of the most transformative urban strategies in decades. By changing planning rules within 400 metres of 37 key train stations across Greater Sydney, the Central Coast, Illawarra-Shoalhaven, and the Hunter region, the goal is clear: deliver more housing in walkable, job-connected, transit-rich areas.

So far, 28 TOD precincts have had their plans adopted. Standouts include:

• St Marys: 9,300 homes and 8,360 jobs projected. A new commercial hub, coworking spaces, and open green zones are included in Penrith City Council’s masterplan.

• North Wollongong: Over 5,000 dwellings planned, carefully positioned to avoid flood zones while preserving heritage.

• Cockle Creek: Up to 1,200 new homes will be delivered through a rezoning partnership between Lake Macquarie Council and the Hunter and Central Coast Development Corporation (HCCDC).

Councils that exceed TOD dwelling targets and propose thoughtful precinct plans are now being recognised and fast-tracked—signaling a golden opportunity for developers to partner early and scale projects around public transport nodes.

2. The Western Sydney Aerotropolis: Bradfield Takes Flight

At the core of Sydney’s future western expansion is the Western Sydney Aerotropolis—a city being built from the ground up near the upcoming Western Sydney International Airport.

Bradfield City Centre is already underway, backed by over $1 billion in state infrastructure and bolstered by:

• 10,000+ new homes

• 20,000 new jobs in advanced manufacturing, aerospace, logistics, agribusiness and education

• A landmark Advanced Manufacturing Readiness Facility (AMRF), now collaborating with 11 universities

• A newly approved $139 million Barings Luddenham Industrial Park, delivering over 63,500sqm of logistics warehousing and creating 600+ new jobs

With $14 billion in private development applications already lodged in the Aerotropolis pipeline, this precinct is set to become a powerhouse of high-tech jobs, commercial investment, and large-scale urban growth.

3. Councils Take the Lead: Planning Powered by Partnerships

The Minns Government is championing a council-first approach—encouraging local authorities to submit their own TOD-aligned precinct plans. This strategy rewards proactive councils like Penrith, Wollongong, and Lake Macquarie, whose plans exceed state requirements.

For developers, this is a call to action:

• Work with councils early

• Align projects with TOD principles and local strategic goals

• Leverage emerging precinct data to unlock planning certainty and density advantages

4. State-Significant Developments: The Fast Track to Housing Supply

The Housing Delivery Authority (HDA) is playing a key role in cutting red tape. In 2025 alone, eight new projects were declared State Significant Developments (SSD), representing 2,400 new homes—most located in Sydney’s metro areas.

To date, the HDA has facilitated over 86 projects and 34,500 potential dwellings, providing developers with clearer approvals, faster processing, and closer coordination with infrastructure planning.

5. Federal Momentum: Labor’s $43 Billion Housing Agenda

Federal Labor’s 2025 election win brings national firepower to NSW’s regional and urban planning efforts. Key initiatives include:

• $10 billion to build 100,000 homes for first-home buyers on fast-tracked Commonwealth land

• $2 billion in concessional loans to state governments to supercharge land release and infrastructure

• $78 million to qualify 6,000 new tradies

• $54 million for prefabricated and modular housing construction

• Expansion of the 5% deposit scheme with no income caps

• $800 million to expand the Help to Buy shared equity program

• HECS debt exclusions from mortgage calculations to improve first-home buyer borrowing power

For developers, this policy alignment across all levels of government is rare—and powerful.

6. Greenfield vs Infill: Balanced Growth with Smarter Infrastructure

From Austral to Oran Park, greenfield sites continue to attract first-home buyers seeking value. But a lack of promised infrastructure—especially transport—has stirred local frustration. In response, the Minns Government is committing over $25 billion to infrastructure across Western Sydney, including:

• North-South rail corridors

• Road upgrades

• Metro stations and active transport links

The goal: ensure greenfield housing isn’t built in isolation, but supported by the amenities and connectivity residents were promised.

Meanwhile, inner-urban infill projects remain crucial to limiting urban sprawl. Developers should expect continued support for medium-density housing around TOD hubs, along with new incentives for sustainable, higher-density developments.

Final Thoughts: What Does This Mean for Developers?

2025 marks a pivotal year for Sydney’s development future. With federal and state governments aligned on supply-led solutions, the momentum for reform is real—and the pressure to act is mounting.

Whether you’re building in Bradfield, targeting TOD precincts, or unlocking greenfield growth, the opportunity lies in strategic, forward-looking development aligned with evolving policy.

At OwnerDeveloper, we work closely with clients to:

• Identify high-potential sites based on current and future infrastructure delivery

• Navigate rezoning, TOD pathways, and SSD opportunities

• Manage feasibility, risk, and project delivery with superintendent oversight

Let’s Build What’s Next — Together

Want to align your next development with NSW’s 2025 reforms and federal priorities?

Book a free consultation and get expert support with:

• TOD site selection and planning approvals

• Aerotropolis and Bradfield development pathways

• Feasibility and construction delivery for housing projects

Keywords: Sydney Housing Reforms, TOD Precincts, Western Sydney Growth, Feasibility Studies, Planning Pathways, Property Development Strategy, Superintendent Services