Top 7 NSW Suburbs Developers Are Targeting In 2026
If you’re deciding where to place your next project in New South Wales, 2026 is the year to stay close to rail, hospitals, schools and well‑served centres. The NSW Government’s Transport Oriented Development (TOD) program and the Low and Mid‑Rise Housing reforms now concentrate capacity around stations and town centres, with clear, codified controls designed to speed up well‑located housing.
TOD introduces state‑wide guidelines for developments within 400 meters of selected stations, permissibility for residential flat buildings, shop‑top housing, building heights from 22 to 24 meters, Floor Space Ratio (FSR) 2.5:1, minimum 21 meters site width and 2% affordable housing on‑site for larger projects, was rolled out from mid 2024 and expanded through 2025. Meanwhile the Low and Mid‑Rise Housing policy opens R2 zones to dual occupancies and permits terraces, townhouses and mid‑rise apartments within 800 meters of nominated centres and stations, with Stage 2 commencing early 2025.
Below are seven NSW locations where these reforms intersect with strong amenity and job anchors.
1) Westmead / Parramatta — health innovation district with deep demand
Image credit: Health NSW
The Westmead Health Precinct is one of Australia’s largest health, education and research hubs, anchored by the Central Acute Services Building and extensive hospital‑university partnerships, with continued investment through 2025 to 2026. This cluster supports thousands of jobs and sustained demand from health workers and students across Parramatta’s catchment.
Why it works: Major hospital infrastructure, university presence and established plans to grow jobs and research.
Sweet spots:
• Sites within walking distance of Westmead Hospital and campus facilities
• Mixed‑use footprints suited to medical and allied health
• Mid‑rise apartment projects near rail and planned light‑rail connections
2) Bankstown — TOD accelerated precinct with finalised rezoning
Image credit: Wikipedia
Bankstown is one of the TOD Accelerated Precincts, with rezoning made on late 2024. The package lifts capacity around the Metro public transport network and transport interchange, adds open space and embeds a higher affordable housing contribution than the base State Environmental Planning Policy (SEPP), with provisions to streamline assessment and encourage time‑limited approvals in 2025.
Why it works: State‑led rezoning around the new Metro with clearer, faster pathways for well‑designed projects.
Sweet spots:
• Shop‑top and apartment sites within 400 to 800 meters of the station
• Consolidation plays on wider lots meeting the 21 meters frontage rule
• Corners positioned for active ground floors and safe pedestrian links
3) Crows Nest / St Leonards — Metro‑enabled centre next to a tertiary hospital
Image credit: Planning NSW
Crows Nest Metro opened in 2024, linking the North West to the CBD and Sydenham with trains every few minutes. The station integrates with the nearby St Leonards commercial and residential centre, and sits a short walk from Royal North Shore Hospital, one of NSW’s principal tertiary hospitals and trauma centres. Precinct works continue to improve pedestrian routes and public spaces.
Why it works: Fast, frequent Metro plus a major hospital anchor support mixed‑use and residential demand.
Sweet spots:
• Build‑to‑rent (BTR) and apartments within 800 to 1,200 meters of station entries
• Corners with retail to capture foot traffic
• Medical‑ready ground floors near hospital routes
4) Macquarie Park — innovation precinct with TOD momentum
Image credit: Wikipedia
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Macquarie Park is flagged for long‑term renewal through the Macquarie Park Place Strategy, with government master planning to 2036 and targets for jobs, homes and public space upgrades. It is also listed among the TOD accelerated precincts in government briefings, reinforcing a shift toward higher density around Metro stations and the university‑hospital ecosystem.
Why it works: University, hospital and tech employers clustered with Metro connectivity and a state‑endorsed place plan.
Sweet spots:
• Mid‑rise projects near Macquarie University station
• Mixed‑use developments built over active ground floors in business park edges
• Compact apartments aimed at staff and students
5) Liverpool — hospital expansion and south‑west growth
Image credit: Liverpool City Council
Liverpool’s Health and Academic Precinct is in Phase 2 of an $830 million redevelopment, delivering new inpatient units, an integrated cancer centre and expanded services through 2027, with Phase 1 already adding a five‑storey building including NICU and birthing suites. Population growth projections for South Western Sydney underline long‑run demand for housing close to the health precinct and major transport corridors.
Why it works: Significant hospital investment and a growing regional catchment.
Sweet spots:
• Townhouses and apartments within walkable catchments of the hospital and station
• Shop‑top housing along key corridors
• Larger lots that can stage delivery as services expand
6) Penrith — Nepean Hospital doubling down on capacity
Image credit: Penrith City Council
Nepean Hospital is mid‑delivery on a > $1 billion two‑stage redevelopment, with Stage 2 progressing in 2025 and completion scheduled for late 2026. New ICU, medical imaging and renal facilities, plus a purpose‑built Child and Adolescent Mental Health Service (CAMHS) unit, anchor demand in Penrith and the Blue Mountains corridor, supported by M4 access and rail.
Why it works: Strong healthcare infrastructure and a broad regional catchment.
Sweet spots:
• Apartments and BTR near the hospital and station
• Small‑lot detached with optional studios for rental flexibility
• Staged sites that align with infrastructure milestones
7) Rouse Hill — Metro North West hub with precinct planning
Rouse Hill Station sits beside the town centre on the Metro North West, with precinct and urban design frameworks positioning it as a regional hub. The Hills Shire’s draft high‑density precinct plans for Rouse Hill, Norwest and Castle Hill envision more homes and jobs near stations, while Landcom’s Metro Northwest Places program continues to deliver new neighbourhoods and parks around the line.
Why it works: Turn‑up‑and‑go Metro, council‑led precinct vision and an expanding town centre anchor.
Sweet spots:
• Townhouses and low‑rise apartments within walking distance of the station
• Shop‑top housing in the centre spine
• Corner sites suited to dual occupancy and terraces
What’s changed in NSW planning (and why it matters)
• TOD SEPP is live around selected stations, setting uniform rules for height, FSR, site width and affordable housing, with roll‑out continuing in 2025. This reduces uncertainty for compliance and planning.
• Accelerated precincts like Bankstown, Crows Nest, Homebush, Kellyville, Bella Vista, Hornsby and Macquarie Park have bespoke rezoning and fast‑track measures tied to infrastructure funding, lifting near‑term capacity where demand is strongest.
Bottom line
Targeting suburbs aligned with NSW’s planning reforms isn’t just about chasing growth, it’s about reducing risk and improving project outcomes. Areas like Westmead/Parramatta, Bankstown, Crows Nest/St Leonards, Macquarie Park, Liverpool, Penrith and Rouse Hill combine strong transport links, major health or education anchors and clear planning pathways. For developers, that means fewer surprises, strong interest and projects that stand up to changing market conditions and policies.