NSW Fast-Tracks Empty Buildings for Crisis Housing

Empty buildings awaiting development can now be rapidly converted into temporary housing under new planning reforms announced by the NSW Government, eliminating months of bureaucratic delays for property owners.

The reforms, introduced on December 16, create exempt and complying development pathways for organisations, providers and government agencies that manage social and affordable housing to repurpose vacant residential properties as temporary accommodation, bypassing traditional development application requirements.

Planning minister Paul Scully said the changes would maintain building standards while reducing delays.

“These buildings were homes for people before they were vacated so they should be able to be repurposed to temporary emergency accommodation without extensive red tape,” Scully said.

The reforms address a significant inefficiency in the property sector, where buildings often remain vacant for years during the development application process.

Current approval times in Sydney average more than 100 days, with additional delays from utility providers and other agencies frequently extending project timelines.

Housing All Australians NSW management committee chair Adrian Harrington said it was a practical solution to property waste.

“In a housing crisis, we can’t afford to let buildings sit empty while people are sleeping rough or experiencing severe housing stress,” Harrington said.

The reforms address a key industry concern, with developers such as Brown Build indicating they would participate in such schemes provided there were safeguards ensuring properties could be returned to development once approvals were received.

The organisation is already implementing the new provisions, working to convert unused accommodation areas owned by aged-care provider Whiddon in south-west Sydney.

The project will provide transitional housing for 25 vulnerable women through a partnership with Hume Community Housing and Women’s Community Shelter.

▲ Housing and Homelessness minister Rose Jackson and Beecroft House.

Evidence supporting the reform’s potential impact comes from successful meanwhile-use projects in NSW.

Link Wentworth’s Beecroft House, operating since 2019 in partnership with Women’s Community Shelters and Twilight Aged Care, shows the model’s effectiveness.

The project used a former aged-care facility during its planning approval phase, offering two-year fixed-term leases to women aged over 55 years awaiting social housing placement, with clear arrangements for returning the property to development use.

Link Wentworth’s analysis of the Beecroft House project after its first year showed net benefits of $394,202 with a benefit-cost ratio of 3.07.

Housing and Homelessness Minister Rose Jackson highlighted the reform’s practical benefits.

“With so many homes sitting empty while people struggle to find shelter, these planning reforms are a common-sense solution to help us get people off the social housing waitlist and into homes,” she said.

The changes complement the Government’s $5.1-billion investment in public housing and align with broader national housing reforms, including the Federal Government’s Housing Australia Future Fund (HAFF).

The Property Council’s group executive policy and advocacy, Matthew Kandelaars, confirmed the HAFF’s second round would deliver 5000 new social homes through state and territory partnerships.

“This initiative will add more urgently needed social housing stock and bring critical momentum to housing supply efforts across the country, unlocking significant new investment and creating thousands of construction jobs,” Kandelaars said.