Opportunities for owners under Inner West Council TOD plan

Have you heard what’s brewing in the Inner West? It could be a game-changer for commercial property owners like you.

The Inner West Council has just dropped something big: a locally led strategy that ditches the cookie-cutter approach of the State’s Transit-Oriented Development (TOD) model. Instead, Our Fairer Future Plan is tailored to how our neighbourhoods actually work, especially when it comes to commercial property potential.

Unlike the NSW State Government’s generic six-storey cap, the Council rolled up its sleeves and did the maths. After running feasibility tests across key areas, they found that buildings up to 22 storeys don’t just work; they’re needed to make redevelopment stack up in places like Marrickville, Sydenham and Dulwich Hill. That’s great news if you’ve been sitting on underutilised land.

Here’s where it gets exciting for commercial property owners

The plan includes smart incentives that are practical and add value:

• Bonus height and FSR: Get rewarded for site consolidation. That awkward little site you’ve been holding onto might suddenly become a key puzzle piece.
• Public realm swaps: Extra density in return for parks, plazas and better public spaces. That means higher foot traffic, which means better tenant appeal.
• Sustainability bonuses: Build greener, get more. It’s good for the planet and your valuation.

This isn’t theory – it’s been tailored to the Inner West’s mixed commercial/residential market. Heritage is protected, adaptive reuse is encouraged, and development pathways are clearer than ever. That Victorian shopfront? It could be part of something bigger.

The plan targets 31,000 new dwellings across nine precincts in two stages, with a target of 5,900 new dwellings by 2041. This nearly doubles what state controls would deliver, meaning more people, more retail demand and stronger commercial precincts.

What does the Inner West Our Fairer Future Plan mean for you?

You or your tenants can expect more customers and tenants thanks to a residential boom. Your site will get a value lift if it’s near a TOD hub. Planning pathways will make it easier for you to sell, redevelop or reposition your asset. The whole neighbourhood will have access to ‒ and benefit from ‒ infrastructure upgrades.

The Council’s data-backed zoning includes walkability, solar access and site feasibility mapping so you know exactly where the action is going to be.

Affordable housing that won’t break the bank

Worried about feasibility? The plan’s affordable housing contributions start low (2%) and scale gradually to 5%. And it’s designed to preserve viability. That’s a relief for anyone eyeing a mid-to-long-term play.

Infrastructure certainty = investor confidence

This isn’t just zoning in a vacuum. The Council is aligning this growth with real infrastructure such as transport, drainage, open space and utilities so you don’t end up holding a DA in a ghost precinct. It’s forward-thinking and delivery-focused.

A smarter TOD

The Inner West Council has looked overseas to Tama Garden City in Japan to find successful implementation of TOD plans. The Our Fairer Future Plan is not just ambitious – it’s local. Planners have zoomed in block by block to offer zoning flexibility with on-the-ground knowledge.

Want a European comparison? To see what’s possible with consultation and a flexible plan, check out Vauban in Freiburg, Germany. Once a military base, Vauban is now a thriving, mixed-use precinct built through community collaboration, not top-down planning. It grew with the neighbourhood, not over it. That’s the kind of smart, organic development we’re seeing here in the Inner West.

The takeaway?

If you’re a commercial property owner in the Inner West or fringe Sydney, this plan isn’t just a policy update – it’s a golden opportunity.

• Reposition tired assets
• Plan for future tenants
• Build with confidence

This is one of the few times where good planning actually aligns with good investment. Don’t sleep on it.

Want to know how your site fits into the Inner West TOD?

Let’s talk. We’re working closely with clients to navigate the plan, identify uplift zones and take advantage of what’s next.

As dedicated local commercial real estate agents, we can help you extract more value from your commercial property. Please get in touch to discuss your circumstances and assets so we can give you personalised advice. Whether it’s commercial leasing, management or sales, we’re here to help you with your Sydney-based commercial property.

Contact us at Ray White Commercial Sydney City Fringe