NSW Government’s TOD Program set to transform Newcastle, Hunter Valley and Central Coast property markets

In a new push to help increase the housing supply for the region with the largest population in the state outside of Greater Sydney, the NSW Government continue to progress with their Transport Oriented Development Program (TOD). The NSW Government’s TOD Program is poised to reshape the property landscape across Newcastle and the Hunter Valley, unlocking new opportunities for developers, investors, and property owners alike. By encouraging higher-density development within 400m of key train stations, the initiative aims to deliver vibrant, walkable communities while significantly boosting housing supply in line with government targets. This significant program is poised to provide a range of new opportunities to developers just as developments in the region have begun to show momentum again.

What is TOD? 

TOD is a planning approach that prioritises development of land around public transport hubs. To encourage this development, under the NSW program, designated areas near train stations will benefit from relaxed zoning controls, including:

• No minimum lot size (though a minimum 21 metre frontage is required for residential flat buildings or shop-top housing).
• Increased building heights and higher floor space ratios (FSR).
• Mixed-use precincts combining residential, retail, and commercial spaces.

These changes are designed to foster connected, liveable neighbourhoods with easy access to transport, services, and amenities and encourage more walkable communities.

Targeted TOD zones in Newcastle, Hunter Valley and Central Coast

While the full list of TOD zones is still being finalised, several key stations are expected to see the greatest impact:

• Newcastle Interchange - A major transport gateway with high uplift potential.
• Kotara & Adamstown - Popular lifestyle hubs with strong residential and retail demand.
• Hamilton - Positioned for growth through urban renewal and proximity to the CBD.
• Morisset - Emerging as a southern gateway with substantial development prospects.
• Gosford - Anchored as a regional capital with strong civic, health, and education infrastructure driving urban intensification.
• Tuggerah - Strategically located for integrated employment and retail growth, supported by major land holdings and connectivity.
• Wyong - Positioned for transformation through affordable housing initiatives and proximity to expanding industrial precincts.

The impact to property values

The TOD reforms are expected to drive positive value shifts across multiple asset classes that are within these zones as the program will not only impact residential housing but are likely to also support commercial and industrial property values.

• Development sites: Likely to see the strongest uplift in value due to increased FSR, relaxed height limits, and expanded mixed-use approvals. These factors increase the demand for these opportunities and therefore their value.
• Residential homes: Moderate value increases are anticipated as investor and developer interest grows due to the increased value in opportunity to redevelop these properties.
• Commercial assets: Higher population density will support retail, hospitality, and service businesses, boosting returns.
• Industrial stock: Neutral to positive outlook, with potential long-term gains through rezoning near TOD zones.

The TOD Program represents one of the most significant planning reforms in recent years for Newcastle, Hunter Valley and the Central Coast. With greater development flexibility and enhanced connectivity, a surge in demand is anticipated for strategic sites and investment opportunities. Landholders in the these designated zones are likely to see an increase in value and demand for their land in order to facilitate the gains that the NSW are hoping to see in housing through this program.

To discuss how the NSW Government’s TOD Program may impact your commercial or industrial property interests across Newcastle, Hunter Valley or Central Coast, connect with our sales team for insights and guidance.

References:

• NSW Department of Planning and Environment. Transport Oriented Development Program. Planning NSW1.
• NSW Government. Hunter Regional Plan 2041. Planning NSW3.
• Transport for NSW. Newcastle Future Transit Corridor Strategic Justification Report. Transport NSW4.
• Transport Oriented Development Program authored by NSW Department of Planning and Environment.