City Planners Target New Farm for Major Rezoning Within Two Years

City planners filed a preliminary rezoning notice last week targeting 12 blocks along Merthyr Road and adjacent lanes in New Farm for medium-density residential use.

The move arrives as New Farm’s vacancy rate sits at 1.8 percent and buyer inquiries for sites near the river have risen 22 percent since March. Local agents report that developers have already submitted expressions of interest for three corner lots on James Street, where current zoning caps buildings at two storeys.

Street-level changes under review

Under the draft boundaries, properties between Merthyr Road and the New Farm Markets site could gain height allowances up to six storeys if the council votes in September. The Powerhouse Theatre on Lamington Street sits just outside the proposed zone, yet operators there expect increased foot traffic from any new residents. Neighbouring streets such as Villiers and Sydney, long dominated by single homes and small blocks of flats, would retain their existing codes for now.

Median unit prices in the suburb reached $685,000 in the June quarter, up from $612,000 twelve months earlier, according to CoreLogic data released on 3 July. Comparable sites in the inner-east corridor that underwent similar rezoning in 2021 recorded average value lifts of 31 percent within 18 months of approval.

Next steps for owners and buyers

Residents can lodge submissions until 28 July through the city’s online portal. Those holding land inside the draft zone are advised to consult a town planner before the September council meeting, while buyers outside the area should track the final map for any boundary adjustments that might affect future sales.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.