Property Council NSW Executive Director Katie Stevenson said the stage 2 Low and Mid-Rise Housing policy would allow more dual-occupancies, terraces, townhouses and residential flat buildings.
"These long-awaited reforms bring certainty and confidence to support the industry to deliver more housing, improve affordability, and provide greater choice for homebuyers and renters.
"The reforms enable well-designed, missing middle housing and will enable delivery of up to a third of our National Housing Accord target - more than 100,000 new homes," she said.
Ms Stevenson said the Property Council has long advocated for planning changes to support the delivery of more diverse housing types to meet the needs of a growing population.
"When the reforms come into effect from next week, families, first-home buyers, and downsizers will have more housing options to help them stay in their communities as their housing needs change, close to family and friends.
"The reforms will boost housing supply where it is needed most, increasing density in areas well-connected to transport and close to existing services, to ease housing pressures and provide more affordable housing options.
"It's also great to see the development rules will be aligned with the NSW Housing Pattern Book on which the Property Council of Australia has been an active partner with the NSW Government."
Ms Stevenson said ongoing government engagement with industry was critical to support the successful implementation of the reforms.
"It's now vital that local councils embrace these changes to ensure their smooth implementation, working collaboratively with industry to enable the homes we need to be built as quickly as possible.
"This is the best shot we have to deliver much-needed housing supply during the five-year National Housing Accord period, and with this certainty, industry can get on with the job of building homes."
