Lake Macquarie’s New Housing Rules Are Now in Effect

Lake Macquarie’s New Housing Rules Are Now in Effect

Monday 22 September 2025

Recent planning changes across Lake Macquarie’s R2 and R3 Residential Zones have officially come into effect, unlocking new opportunities for property owners and developers. These updates aim to address the State’s housing crisis by increasing housing supply and diversity throughout the region.

The major changes under the new rules are that dual occupancies are now permitted in R3 Medium Density Residential zones, while terraces, townhouses, and small apartment buildings are permissible in R2 Low Density Residential zones. This means many properties previously limited, may now support more intensive development, potentially increasing their value and usability.

If you own land in one of these zones, now is the perfect time to explore your site’s full potential. At Parker Scanlon, our Town Planning team can prepare a Planning Feasibility Report tailored to your property and manage the entire Development Application (DA) process for you.

Enquire with our Town Planning Team to find out how we can help you make the most of these changes and your property.



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