Sydney Approves First New Homes in Redfern, Surry Hills by December 2026

The City of Sydney has released its updated Local Housing Delivery Timeline, which sets fixed windows for processing development applications tied to affordable housing targets. The changes apply to 12 priority precincts and will first reach residents through new project lodgements in Redfern and Surry Hills.

Housing affordability remains the dominant local issue across the 47 federal seats that include Western Sydney marginals. Multiple councils have aligned their internal approval calendars with the state government's 2026-27 budget allocations for infrastructure coordination, creating a single reference point for when completed dwellings are projected to enter the market.

Daily Effects for Residents

Under the timeline, development applications that meet the new affordable housing thresholds must receive a determination within 45 working days. Residents seeking rental properties in the affected precincts could see the first additional units advertised by the middle of 2027. Local advocates note that this schedule also governs when section 7.11 contribution levies are recalculated, directly influencing the cost component passed on to new tenants in those buildings.

The 2025 City of Sydney annual report recorded 1247 development applications lodged across the local government area. The timeline document states that 65 per cent of those lodged after 1 October 2026 will fall under the accelerated track, provided they allocate at least 15 per cent of floor space to affordable units.

Implementation Steps Ahead

Councils must publish quarterly progress reports on the NSW Planning Portal beginning in January 2027. The government says the policy will produce the first certificates of occupancy under the new schedule in the second half of 2028. Residents can track individual applications through the portal once a proposal is lodged, giving advance notice of construction timelines that affect street access and local services.