Terraces in NSW: multi dwelling housing (terraces)
What is a terrace? In NSW planning, terraces are a form of multi dwelling housing: three or more attached dwellings on one lot, side by side, each facing a public road.
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Video transcript
What is a terrace? In NSW planning, the word has a specific meaning.
In planning terms, terraces are a form of multi dwelling housing: three or more attached dwellings on one lot, side by side, each facing a public road.
Like all multi dwelling housing, each home has ground-level access. Under the complying development code, each terrace must face a public road, be at least six metres wide, and no dwelling can sit behind another.
How does that compare? A dual occupancy is two dwellings on one lot, attached or detached. Townhouses and villas are multi dwelling housing too: three or more dwellings on one lot, each with ground-level access. Terraces are three or more attached dwellings on one lot, side by side, each facing a public road. And a manor house is three or four dwellings in one building of no more than two storeys, with at least one dwelling above another.
Why does the label matter? Each housing type has its own controls. In areas covered by the NSW Low and Mid-Rise Housing Policy, or LMR, terraces are now permitted with consent in the R2 Low Density Residential zone, even where a council's local plan prohibits them. For a development application, the non-refusal standards are a 500 m² lot and an 18 metre width. And finished terraces can be subdivided, so each home sits on its own Torrens title lot.
So if your land is in an LMR area, terraces may be a real option. Our explainer on terraces by complying development looks at when they may qualify, subject to a s 10.7 planning certificate and registered certifier sign-off. Some NSW Planning guidance pages still say the council's LEP must permit it, so raise this with your registered certifier early.
Check your site with SN Architects, at snarchitects.com.au.
Key points
In NSW Low and Mid-Rise Housing Policy (LMR) areas, terraces are permitted with consent in R2, even where the council's local plan prohibits them (Housing SEPP s 170), except on excluded land (Housing SEPP s 164).
For a development application (DA), the non-refusal standards are a 500 m² lot, 18 m wide at the front building line (s 172(3)).
As complying development, the lot needs at least 600 m² (or the LEP minimum where higher) and 21 m wide at the building line (Codes SEPP cl 3B.33).
Finished terraces can be Torrens subdivided (s 173; Codes SEPP Pt 6).
Terraces may be carried out as complying development, except on excluded land (Housing SEPP s 164), subject to a s 10.7 planning certificate and registered certifier sign-off.
Some NSW Planning guidance pages still say the council's LEP must permit it, so raise this with your registered certifier early.
Check your site
Check your site with SN Architects
www.snarchitects.com.au | info@snarchitects.com.au
As at and sources
General information only, not planning advice. Current as at October 2026 (Housing SEPP 2021 and Codes SEPP 2008 as in force from 11 September 2026).
Sources: NSW Legislation, https://www.legislation.nsw.gov.au
Based on content from the New South Wales Legislation website at 8 October 2026. For the latest information on New South Wales Government legislation please go to https://www.legislation.nsw.gov.au.
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Disclaimer
This is general information only, not planning, legal or financial advice, and it is not an assessment of any particular property. Planning rules change and every site is different. Before relying on it, obtain a section 10.7 planning certificate for your property and advice from a qualified town planner or registered certifier. To the extent permitted by law, SN Architects accepts no liability for any loss arising from reliance on this information. Information current as at October 2026. © SN Architects 2026.
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