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Cash flow kings: Secondary dwellings to take off in Western Sydney
Investors in Western Sydney now have an opportunity to increase their rental returns, as updated planning rules permit the development of secondary dwellings on properties near the new Western Sydney International Airport.
The NSW government has moved to unlock more housing around the Western Sydney International Airport (WSIA), reversing a previously imposed ban on secondary dwellings in the region.
The amendments to the Western Parkland City State Environmental Planning Policy will apply to land within the Australian Noise Exposure Concept 20–25 contour, which identifies areas expected to experience lower aircraft noise levels.
The change will lift the ban on secondary dwellings, such as granny flats and studios, in key locations near the WSIA.
The changes apply to eligible land in the local government areas (LGAs) of Wollondilly, Camden, Fairfield, Liverpool, and Penrith.
The reforms come as investors have begun to use secondary dwellings as an additional income stream, with granny flat investment jumping by 21 per cent in 2025.
According to the data, secondary dwellings in Sydney and Melbourne could generate an annual income of $18,000 to $36,000.
Minister for Western Sydney Prue Car said the planning reforms would support housing delivery to ensure Western Sydney’s long-term growth.
“The new airport is creating jobs, investment and opportunity, and these changes will help more people live close to where those opportunities are emerging,” Car said.
Minister for planning and public spaces Paul Scully said the reform would provide more housing options for buyers close to transportation and job opportunities.
“Allowing secondary dwellings in suitable areas around the new airport is a commonsense approach that will help create more affordable and flexible housing options for families, while supporting the long-term growth of Western Sydney.”
“Whether it’s young people trying to stay close to home, older parents wanting to live near family, or homeowners looking for greater flexibility, these reforms will help communities grow alongside the investment coming to Western Sydney,” Scully concluded.
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