A group of homeowners in Rose Bay has collectively sold five properties for $75 million following the introduction of a state policy allowing mid-rise housing development near town centres and transport hubs.
Background and Context
The NSW Government’s Low and Mid-Rise Housing Policy came into effect in two stages, with the second stage launched on 28 February 2025. This policy is part of the State Environmental Planning Policy (Housing) 2021, and it enables construction of low to mid-rise housing—up to six storeys—within 800 metres of 171 nominated town centres and transport hubs across NSW.
In Rose Bay, the designated zone includes the Rose Bay Town Centre on New South Head Road, making properties within this radius eligible for higher-density redevelopment under the new rules.
Photo Credit: Google Maps Street View
Policy Impact and Property Sales
As a direct result of these planning changes, five properties along Dover Road, Rose Bay were sold to Fortis Property Group for a combined $75 million. These include 23-31 Dover Road, with individual block sizes ranging from 496 to 546 square metres.
The standout transaction involved 23 Dover Road, previously operating as the Rose Bay Family Medical Centre. The vendor had struggled to attract interest at $8 million over a nine-month period, but the property ultimately sold for $16 million. Records show it last traded for $2.5 million in 2009.
Other homes involved in the deal had not changed hands since the 1990s, with some last selling for as little as $550,000.
Explanation of the Policy Shift
The new policy overrides existing local council rules relating to height and floor space ratios. It encourages construction of dual occupancies, terraces, townhouses, and apartment buildings ranging from three to six storeys. Stage 1 of the policy began on 1 July 2024 and permitted dual occupancies in R2 low-density residential zones across NSW.
The Department of Planning and Environment stated the policy aims to provide better housing diversity and address the shortfall between detached homes and high-rise developments. The policy is expected to support delivery of 112,000 homes across the state over five years.
Photo Credit: Google Maps Street View
Community Implications and Market Reactions
Agents involved in the Rose Bay transaction—Alex Lyons and Ric Serrao of Raine and Horne Double Bay—confirmed high interest from developers following the policy announcement, although confidentiality agreements limited specific commentary.
Fortis Property Group Director Charles Mellick confirmed the company had purchased the site with long settlement terms to allow time for planning approvals and construction commencement. He acknowledged the housing policy was the motivating factor behind the purchase.
While property owners within the zone have seen substantial value increases, those just outside the 800-metre boundary are unlikely to benefit, raising concerns about inequity.
Conclusion
As the Low and Mid-Rise Housing Policy rolls out across NSW, Rose Bay has emerged as one of the earliest examples of its significant market impact. While some homeowners may benefit from surging property values, future development will test the policy’s broader implications on community infrastructure and livability.
Published 22-Mar-2025
