A townhouse development puts several homes on one lot, usually two storeys each, often with a shared driveway. In NSW, there are two main ways to get it approved: a complying development certificate (CDC) under the state's Low Rise Housing Diversity (LRHD) Code, or a development application (DA) to council.
What planning law calls a townhouse
Planning instruments do not use the word "townhouse". A group of three or more homes on one lot, each with access at ground level, is generally multi dwelling housing. The LRHD Code describes a narrower version called terraces, where the homes are attached, none sits above another, and they face and generally line up along one or more public roads.
That street facing requirement is the main dividing line. A row of homes across the front of a corner lot or a wide lot can be terraces. Homes lined up behind each other down a long driveway are not.
When a CDC is possible
Terraces can be approved as complying development when:
- the site is zoned R1, R2, R3 or RU5, and the LEP permits multi dwelling housing
- the site area meets what the LEP requires, or 600 m² (the code's fallback) where the LEP is silent
- the design is one or two storeys and meets every numeric standard in the code
- a registered architect or accredited building designer provides a design verification statement
- the land is not excluded, such as a heritage item, a heritage conservation area or environmentally sensitive land
A certifier tests the drawings against each code standard and, if all are met, issues the CDC. There is no merit assessment, so the design must comply on every point.
When council has to assess a DA
Most townhouse layouts with an internal driveway need a DA lodged with council. So do sites with heritage or environmental constraints, and designs that need flexibility on height, setbacks or floor space. Council assesses the design against the LEP, its development control plan and any state policy, and may apply conditions. A construction certificate is needed after consent.
Since 28 February 2025, the low and mid-rise housing policy has permitted multi dwelling housing and terraces, with consent, on R2 land inside mapped areas close to selected town centres and train stations. In those areas, a council cannot refuse a DA on grounds covered by the state's non-discretionary standards if the design meets them. For multi dwelling housing, they include a 600 m² minimum lot, a 12 m minimum width, a maximum FSR of 0.7:1 and a 9.5 m height limit. Bushfire prone land and some flood prone land are excluded.
Comparing the two routes
- Certainty. A CDC is a yes or no test against fixed rules. A DA allows flexibility, with the possibility of changes or refusal.
- Design freedom. A DA suits rear-loaded layouts and sites that do not fit the code.
- Building code. Both routes still need full compliance with the Building Code of Australia, including fire-resisting separating walls between the homes.
Plan the route before the design
The lot shape, frontage and zoning usually decide the route, so check these before detailed design starts. Our plan assessment service can review a concept, and our townhouses page explains how we help. Read our CDC or DA: picking the approval your home project needs for the basics, or request a quote.
Local help across NSW
CertifiBuild certifies Class 1 and Class 10 work in 39 council areas. Local rules on these council pages are a good place to start: Randwick City Council, Campbelltown City Council, North Sydney Council, City of Sydney, Bayside Council, Hawkesbury City Council.
Suburb pages with local planning notes: Chifley, Claymore, Cremorne, Crows Nest, Darlinghurst, Eastlakes, Ebenezer, Edgecliff, Enfield, Fairfield. You can also browse every service area.
Sources
- Codes SEPP Part 3B, Low Rise Housing Diversity (LRHD) Code page, NSW Planning Portal
- Low and mid-rise housing policy key provisions summary, NSW Department of Planning
- Low and mid-rise housing policy overview, NSW Department of Planning