housing diversity guide DRAFT - Landcom - NSW Government

DRAFT
housing
diversity guide
Working Draft For Discussion August 2009

The Housing Diversity Guide has been
produced to promote increased diversity of
housing to address affordability issues and
changing demographic needs.
Front Cover Images: (Clockwise from top left)
Double storey home at The New Rouse Hill
Terraces at The Ponds
Duplex at Garden Gates, Mt Annan
Studio apartments at Garden Gates, Mt Annan

Housing Housing Diversity Diversity Guide ACKNOWLEDGEMENTS Guide INTRODUCTION | 3
2.0 The context for
housing diversity guide
housing diversity
contents
Part A: Housing Diversity Background and Principles 5
Introduction 6
The context for housing diversity 11
Housing diversity principles 16
Masterplanning and urban design considerations 20
Development control considerations 23
Housing diversity examples 30
Detailed testing of four housing types 35
Part B: Housing Diversity Examples of Existing Projects 43
Part C: Housing Diversity Worked Case Studies 55
Acknowledgements 95

Housing diversity helps create sustainable
and diverse communities. Local housing
diversity helps us respond to the housing
needs of communities as they change over
time.

Part A
housing diversity
background
and principles
Hunterford

6 | Housing Diversity Guide INTRODUCTION
1.0
introduction
1.1 Why housing diversity?
Housing diversity provides a mix of dwellings
that meet the different needs of a wide range of
people in society. This Housing Diversity Guide
has been developed by Landcom to encourage
housing diversity in new residential areas. The
planning and design principles for housing
diversity in new areas can also be applied to
established areas.
Housing diversity is important because it enables
neighbourhoods to provide for changing
demographics. It also helps address housing
affordability issues and it provides for different
lifestyle choices and life stages including young
families, single people and retirees. Having a
wide range of dwellings makes it easier to meet
the diverse housing needs of home owners,
renters, investors, families, one or two person
households and first home buyers. Diverse
housing in local neighbourhoods helps build
diverse and socially interesting places, avoiding
housing ‘mono-cultures’.
1.2 Why a housing diversity guide?
The purpose of this Housing Diversity Guide
is to identify the key planning and design
principles that are essential to delivering high
quality housing diversity. Landcom’s goal is to
make it easier, faster and more cost effective to
deliver a wide range of housing types in new
and established communities across the Sydney
metropolitan area and NSW.
In recent years the planning system has paid
particular attention to the design of medium
and high density apartments and, at the other
end of the density scale, to detached houses.
The introduction of State Environmental
Planning Policy (SEPP) 65 (and its supporting
documents) has enabled councils, planners,
developers and architects to better understand
and design apartment buildings. Similarly, the
development industry and local communities,
together with legislation such as the Building
Sustainability Index (BASIX), have contributed
to improvements in the design of detached
homes and lower density townhouses and villas.
However, there has been a gap in the regulatory
and advisory planning framework applied to
housing developed on lots between 150m²
and 400m². For lots in this range, until recently,
housing forms have been either attached
or detached, depending on factors such as
physical location, demographics and local
demand. Housing that can be developed
on these lots include small single detached
dwellings, duplexes, triplexes, terrace homes
(row housing) and other multi unit buildings
that are of more affordable ‘cottage’ type
construction, up to three storeys.
These housing types are generally able to be
built by project home builders, although at
present they are not developing them in large
numbers due to existing regulations. Provided
in the right locations, and if careful design and
delivery is supported by the town planning
framework, these types of houses can make
a substantial contribution to relative housing
affordability.

Housing Diversity Guide INTRODUCTION | 7
1.3 How housing diversity helps create sustainable places
Ultimately, housing diversity helps create
sustainable and diverse communities. Local
housing diversity helps us respond to the
housing needs of communities as they change
over time. For example, as couples grow older
and as children leave the family home, the
‘traditional’ family home is often no longer
ideal. But as people age, their first preference
is to stay in their existing communities, where
friends and support networks are already well
established. Smaller, diverse housing types will
offer this flexibility. Without housing diversity,
older people will need to move away from their
communities and re-establish themselves in
areas where the housing types are better suited
to their needs.
Similarly, households comprising single
persons and couples without children are on
the increase. These people are often looking
for smaller, lower maintenance housing which
suits their lifestyles and budgets. Single parent
families are also increasing, with particular
housing needs focussed on affordability and
child-friendliness. More diverse housing types
can help fill this need.
Housing affordability remains a concern for new
entrants to the market. Not only is there is a
need to provide housing that is more affordable
to rent and buy, these houses need to be located
in places that offer an acceptable amenity and
lifestyle. ‘Affordable living’ opportunities are
created when more affordable housing products
are located in areas with access to good public
transport, shops, schools and services.
Residential Flat Building at Kings Bay, Abbotsford
Rouse Hill

8 | Housing Diversity Guide INTRODUCTION
1.4 Why Landcom?
Landcom has an overall objective to create
sustainable places. Housing diversity has its
own important role to play in this process.
There is now an urgent need to increase the
supply of well designed, smaller housing so that
we can do our bit to help meet the fast rising
demand of smaller households.
This has led Landcom to look at new and
adapted housing types for lots in the 150 –
400m² range and to think about ways in which
the increased supply of this housing can be
encouraged.
This Housing Diversity Guide has been
developed by examining current best practice
from developers and builders around Australia.
It considers the current regulatory framework
that controls the development of these housing
types and the market forces that are driving
demand. By examining these issues and
providing practical examples of how housing
diversity can be implemented, we hope that
we can contribute a useful resource document
for people in the planning, development
and building industries who are interested in
addressing housing diversity at the local level.
1.5 Research to support this document
This Housing Diversity Guide outlines principles
for the design and development of small lots and
dwellings. These principles were developed
after examining current best practice from
developers and builders around Australia. As
well as looking at built form (the supply side)
we did a detailed assessment of planning
codes from around Australia (in particular the
Development Controls Plans in areas where
Landcom operates) to see how local planning
frameworks may be affecting the supply side of
the equation.
Landcom was assisted in this task by consultants
who have recent experience in housing
diversity: dKO Architecture and The Treadstone
Company. In addition, Rawson Homes provided
advice on detailed costs of the dwellings tested.
Park Central, Campbelltown
Garage top studio apartment at Hunterford, Oatlands

Housing Diversity Guide INTRODUCTION | 9
Research to support this guide began with the
compilation of housing design principles and an
assessment of lot types from around Australia.
A total of 22 case study house-and-lots were
selected and grouped into types. They were
then assessed against key housing diversity
principles (discussed in Section 3 of this guide).
The houses and lots were priced and reviewed
against a market assessment in NSW for
suitability in Landcom neighbourhoods.
The second research phase saw the 22 case
studies filtered down to four key lot types: lots
for the Villa; Cottage; Duplex; and Manor Home.
These were then the subject of a detailed
assessment which included builder pricing,
lot price assessment, and town planning/
development code compliance assessment.
This allowed us to identify key urban design
principles, for the preparation and assessment
of master plans, which facilitate the delivery of
diverse housing types.
1.6 How to use this guide
By producing this Housing Diversity Guide
Landcom’s goal is to increase stakeholder
understanding of the range of housing types
that fill the ‘gap’ between single detached
dwellings and apartment living. It is intended
that the guide will be used by planning,
development and building professionals as a
resource document. It is not intended that the
guide be used as a prescriptive tool. Rather,
it is intended to raise general awareness about
housing diversity and initiate innovative ideas
and solutions.
Landcom welcomes feedback on the Guide.
We will make amendments as required.
Newbury
Terraces at Hunterford, Oatlands

10 | Housing Diversity Guide INTRODUCTION
The three most significant areas of change
in the new housing market are affordability,
demographic change and achieving
environmental sustainability outcomes.
Increasing the range of dwelling types in
new and established residential communities
will be a critical response that planners can
directly influence in order to address these
sustainability issues.

Housing Diversity Guide THE CONTEXT FOR HOUSING DIVERSITY | 11
2.0 2.0 The context for
the context for
housing diversity
housing diversity
This guide helps support key priorities outlined in the State Government’s
NSW State Plan, the Metropolitan Strategy for Sydney; subregional strategies
for ten subregions across Sydney; and seven regional strategies covering
the NSW non-metropolitan coastline. It also supports local government’s
role in preparing long-term strategic land use plans and more detailed Local
Environmental Plans (LEPs).
2.1 NSW State Plan
The NSW State Plan sets out the priorities for
the NSW Government to action over the next
ten years. The Plan includes 34 priorities and 60
targets designed to deliver better services and
improve accountability across the public sector.
Housing diversity plays a key role of Priority E5:
Jobs Closer to Home, and Priority E6: Housing
Affordability.
The target for ‘jobs closer to home’ is to
increase the proportion of the population
living within 30 minutes by public transport of
a city or major centre in Greater Metropolitan
Sydney. Providing greater housing diversity
in existing urban areas means that people will
have increased choice to live closer to work,
which will also potentially decrease incidental
living costs such as transport.
The targets for ‘housing affordability’ are
primarily directed to improving land supply and
include:
• 640,000 new dwellings in the Sydney
Metropolitan Region over the next 25 years
to 2031
• 55,000 zoned and serviced lots ready for
development in the Sydney Metropolitan
Region by 2009
• At least 300,000 new dwellings in regional
areas over the next 25 years, with an
increased rate of infill development
• Growth Centre area masterplanning that
focuses on the creation of village centres
with higher densities located close to
transport, services and public open spaces.

12 | Housing Diversity Guide THE CONTEXT FOR HOUSING DIVERSITY
2.2 Metropolitan Strategy, regional strategies
and subregional strategies
Housing diversity will play a critical role in
helping to achieve the objectives outlined in
the State Government’s Metropolitan Strategy
for Sydney, the subregional strategies for the
ten subregions of the Greater Metropolitan
Region and the seven regional strategies.
The Metropolitan Plan, ‘City of Cities: A Plan
for Sydney’s Future,’ supports continuing
economic growth while balancing social and
environmental impacts. Its strategic direction is
based on anticipated population, and economic
and demographic trends. The Strategy has been
developed with five aims: enhance liveability;
strengthen economic competitiveness; ensure
fairness; protect the environment; and improve
governance.
The Metropolitan Strategy outlines the
population growth and demographic changes
expected to the year 2031, the anticipated
life of the strategy. These expected changes
include the trend to smaller households and
the ageing of the population. These trends
are expected to result in more single and
two person households, with a consequential
demand for smaller housing with good access
to shops, transport and services such as health.
The Metropolitan Strategy also notes that
increasing affluence and more single and young
people living alone are major contributors to a
projected increased demand for smaller homes.
These changes in household type and
occupancy rates mean that total demand for
housing will be greater than that generated
solely by population growth. The demographic
trends also suggest that a wider mix of housing
types will be required.
The Metropolitan Strategy includes net targets
for new housing in developing and established
areas of Sydney. It sets out a range of actions
addressing provision of a mix of housing types,
and identifying locations for additional housing,
including housing for seniors and people with a
disability. Housing diversity can play a critical
role in delivery of many of these actions.
The ten draft subregional strategies interpret
the objectives of the Metropolitan Strategy’s
long-term planning at a more local level. Each
of the final subregional strategies will contain
housing and employment capacity targets to
the year 2031, which councils will be required
to accommodate in their comprehensive Local
Environmental Plans (LEPs). The housing targets
take into account the Metropolitan Strategy
objective of encouraging greater housing
diversity.
In addition to the ten subregional planning
strategies for the Sydney region, seven
regional strategies have been prepared by
the Department of Planning. The strategies
contain housing and employment targets to
the year 2031 and outline population growth
and demographic changes expected for
each region. Encouraging housing diversity
is an important consideration in adequately
responding to the projected population growth
and changes in these regions.
Townhouses Hunterford, Oatlands NSW
Terraces at Kings Bay, Five Dock

Housing Diversity Guide THE CONTEXT FOR HOUSING DIVERSITY | 13
2.3 Local strategic planning and LEPs
The housing and employment capacity
targets in the various regional and subregional
strategies are being incorporated into the
comprehensive LEPs of local councils. Most
councils are informing the preparation of their
new comprehensive LEPs by conducting various
strategic studies, including studies into local
housing demand. Housing diversity will assist
councils to meet the housing targets set out in
the strategies and to meet the growing need
for well designed, smaller housing that provides
amenity and lifestyle outcomes acceptable to
existing and future communities.
Our current planning strategies, policies and
development controls in NSW are generally
designed to cater for the delivery of ‘traditional’
forms housing. Controls such as minimum
lot size, floor space ratio, building setbacks,
dwelling definitions, and the types of dwellings
permitted in low density residential zones can
discourage housing diversity. Suggestions for
how these planning controls can encourage the
delivery of more housing diversity are discussed
in Section 5 of this guide.
Newbury

14 | Housing Diversity Guide THE CONTEXT FOR HOUSING DIVERSITY
2.4 Housing diversity and sustainability
Increasing the opportunities for housing
diversity can play an important role in
addressing economic, social and environmental
issues.
2.4.1 Economic benefits
Housing affordability is firmly established as
a key issue in most of our urban areas with
potential homeowners being locked out of the
market due to the high price of housing. The
introduction of more diverse housing types can
reduce the entry price of new homes by around
$100,000, and sometime more depending on
location. This reduction in the price of new
homes allows much greater access to housing
for people earning moderate incomes including
key workers such as teachers, emergency
services staff and healthcare personnel.
Such significant savings can be made because
smaller parcels of land and smaller dwelling
sizes reduce the cost of the house and land
packages considerably, making it easier for
people earning average household incomes to
purchase their own home. While the building
industry has achieved important cost efficiencies
in the construction of dwellings, the cost of land
remains relatively high today, accounting for
approximately two-thirds of the cost of a house
and land package. Therefore, optimising land
size is an important cost containment strategy.
Providing greater housing diversity in existing
urban areas also means that people will have
increased choices for living closer to work,
consequently reducing other costs such as
transport. Importantly, housing diversity can
be delivered by the development and building
industry without intervention, subsidies or on/
going management by government, if the
overall planning and market parameters are
right.
Landcom’s Sustainability Model
Liveability
COMMUNITY
ENVIRONMENT
SUSTAINABILITY
Housing diversity
Equity
Viability
Meeting the needs
of a diverse range
of households
ECONOMY
Reducing use
of resources
Housing affordability
Showing how ‘housing diversity’ achieves social, environmental and economic sustainability objectives

Housing Diversity Guide THE CONTEXT FOR HOUSING DIVERSITY | 15
2.4.2 Social benefits
Greater housing diversity can help to achieve
social objectives by meeting the housing needs
of increasingly diverse household types. As
‘baby boomers’ move into the empty nesting
and retirement phase of their lives, and as
Generation X families generally have fewer
children and require less space than the ‘baby
boomers’ did, the demand for ‘traditional’
houses begins to change.
A research paper completed by John Symond
(Aussie Homes) and BIS Shrapnel in 2007
found that the empty nester/retiree and first
homebuyer markets would be the big growth
markets over the next 10 years. They also
found that the ‘move up’ family market that
has dominated over the past 20 years will be
a much smaller part of the market. In addition
to the first homebuyers, affordability will be
an important consideration for empty nesters,
who are looking to diversify their investments
as they get ready for retirement, by downsizing
and investing in asset classes other than real
estate.
Housing diversity also assists in creating diversity
in communities by enabling a range of different
family/household types, age and income ranges
to live in the same neighbourhoods.
2.4.3 Environmental benefits
The move by all levels of government to address
climate change will continue to have a profound
effect on many industries and will increasingly
impact on the way we live. Housing diversity
can achieve environmental objectives though
a reduction in new housing’s environmental
footprint – decreasing the use of resources
and amount of land required to provide new
housing. Smaller, well designed homes are
also more thermally efficient that larger homes,
reducing associated heating and cooling costs.
Initiatives to address the rate of expansion on
the urban fringe; increase the use of public
transport, and make better use of existing
infrastructure are all greatly assisted by
encouraging greater housing diversity.
Garage top studio apartments, Hunterford

16 | Housing Diversity Guide HOUSING DIVERSITY PRINCIPLES
3.0
housing diversity
principles
Traditionally, most residential areas have included a wide range of housing
stock catering to a diverse range of people. Many of the different housing
forms which are seen more commonly in the older suburbs can be successfully
integrated into new residential areas. These residences can add richness to
the community by encouraging residents at different life-cycle stages and of
household types into the neighbourhood. They also cater to households on
a range of income levels. In addition, a diversity of housing can contribute
to the visual interest of the streetscape and neighbourhood, countering the
homogeneity of built form which can occur when all the dwellings are of a
similar type.
After researching some of Australia’s best examples of housing diversity, we
have identified set of housing diversity principles. These principles have been
developed to provide a benchmark against which we assessed the housing
diversity examples in Part C.
Applying these principles will help ensure that the ‘on-the-ground’ outcomes
are highly successful in the eyes of new homeowners, their neighbours and
the wider community.
The principles for successful housing diversity are:
• Affordability
• Wide choice
• ‘Salt and peppering’
• Amenity
• Integration
• Allow for variety in tenure
• Environmental sustainability

Housing Diversity Guide HOUSING DIVERSITY PRINCIPLES | 17
3.1 Affordability
Affordability is a key principle of housing
diversity. The house types need to take into
consideration all aspects relating to cost. These
costs could be base land costs in addition to
building costs and design efficiency. One of the
most significant ways that housing affordability
can be improved is by reducing the size of the
land.
3.2 Amenity
Amenity for the occupants and for surrounding
neighbours is a significant issue that must
be addressed when designing for housing
diversity. However, just because homes may
be clustered more closely together, it does not
mean that amenity is automatically reduced as a
consequence. Well designed homes will ensure
that privacy, both visual and acoustic, and solar
access to private open space and internal living
areas, are successfully achieved.
Terraces at The Ponds

18 | Housing Diversity Guide HOUSING DIVERSITY PRINCIPLES
3.3 Wide choice
The housing market for smaller homes is not
limited to one particular house type or lot size.
A wide range of housing product needs to
be delivered to ensure that there is adequate
choice for homebuyers and adequate variation
to ensure the homes contribute diversity within
the overall streetscape.
3.4 Integration
A key principle is the ability to integrate diverse
housing types into a traditional suburb, while
ensuring that streetscape and amenity issues are
properly addressed. Good design can ensure
compatibility with the streetscape, maximum
access to sunlight, protection of privacy and
optimum use of private open space.
3.5 ‘Salt and peppering’
It is important that diverse housing forms
are not clustered in only one location in a
development, but that they are dispersed in a
variety of locations. There may still be localised
‘clustering’ of housing types, however, it should
not be to an extent which clearly identifies an
area as being ‘different’ to otherwise similar
areas. The secret to successful housing diversity
is to normalise it.
Duplex at Garden Gates, Mt Annan
Garage top Studio Apartment at Park Central, Campbelltown

Housing Diversity Guide HOUSING DIVERSITY PRINCIPLES | 19
3.6 Allow for variety in tenure
A variety of tenure options will help meet the
changing housing needs of a population across
its various lifecycle phases. At various stages
of our lives we may be home owners, home
renters, investors, or social housing tenants.
Depending on where we are in our lifecycle, we
may live in traditional homes, medium or high
density apartments, or in ‘universal’ housing
(housing that can accommodate people of
different levels of mobility, allowing for diverse
needs, lifestyles and age groups now and in the
future). We may be a family, single, childless
couple, single parent or empty nester. Each
lifecycle stage will produce demands for
different housing types and different tenures.
Diverse housing choice will help meet this
demand.
3.7 Environmental sustainability
There are many aspects of environmental
sustainability that need to be examined when
dealing with housing diversity. Individual homes
should consider issues such as orientation,
building materials and insulation, to promote
environmental sustainability. The way in
which groups of houses are clustered together
and relate to one another can also result in
sustainability gains on a larger scale, which can
translate to a reduced public infrastructure load
per household.
Stratum titled studio apartment at Garden Gates, Mt Annan
Triplex at Macarthur Gardens, Campbelltown

20 | Housing Diversity Guide MASTER PLANNING
4.0
Master planning and
urban design considerations
The careful master planning and design of smaller lots and dwellings is critical
to their success. Careful placement and design of lots will ensure adequate
solar access, a variety of housing options, a location within easy access to
public transport and communal open space, and affordably priced land.
4.1 Housing mix
Providing a mix of housing types will increase
the range of housing choices for a growing
population with changing demands.
The mix of housing types, as well as the
proportion of smaller lots and dwellings
provided, will be influenced by the location
of a development and the needs of the local
housing market. Housing diversity can be
facilitated by providing a number of purposedesigned
smaller lots and dwellings in any new
master plan.
Providing a variety of housing types will ensure
that a development will be appealing to a
wider segment of the housing market. Housing
options attractive to home owners, renters,
investors, and social housing providers, as
well as adaptable and accessible housing and
assisted living options, can all be catered for by
the potential housing mix.
Terrace houses, Addison, New Zealand

Housing Diversity Guide MASTER PLANNING DESIGN | 21
4.2 Location
Small lots and dwellings need to be master
planned at the outset, to produce a high quality
urban form that integrates with surrounding
areas. They should be located within easy access
to public transport, and close to communal
open spaces.
‘Salt and peppering’ of small lots and dwellings
can help maintain the desired streetscape and
neighbourhood character of surrounding areas.
Courtyard home by Wincrest
Terrraces at Hunterford, Oatlands

22 | Housing Diversity Guide MASTER PLANNING DESIGN
4.3 Lot orientation
Orientation of the lots is important in achieving
energy efficient and affordable homes, and
reducing building costs. Small lots and
dwellings should be considered early in the
master planning phase of a development
project, to ensure that sufficient opportunities
for housing diversity are created. Each compact
lot typology should have a specific orientation
range which needs to be assessed at the master
planning phase.
A range of compact house and lot types have
been trialled on existing Landcom master plans
at Doonside, Potts Hill, Minto and Oran Park, to
identify lots which achieved good solar access.
This trial revealed that the most accommodating
subdivision pattern for compact lot housing is
an east-west orientation. This orientation of the
lots, (streets running north south) ensures that
most of the lots receive adequate amounts of
solar access year round.
The problem with north-south oriented lots is
that to achieve adequate levels of solar access,
the private open space needs to be located in
front of the house, posing potential difficulties
with privacy and general amenity.
Park Central, Campbelltown

Housing Diversity Guide DEVELOPMENT CONTROL CONSIDERATIONS | 23
2.0 5.0 The context for
development control
considerations
housing diversity
Development controls can either encourage or discourage housing diversity.
Certain development controls are also important to ensure that smaller
homes and lots achieve good solar access, privacy and amenity for both
the occupants and their neighbours, and that they are well integrated in the
streetscape.
There are a number of development controls that can make a big difference
to the success, or otherwise, of housing diversity. Unless care is taken in
imposing the controls the individual or collective result may be to stifle
housing diversity.
5.1 Floor space ratios
Floor space ratios (FSR) are often used in to
control building bulk and to protect privacy and
solar access. An analysis of DCPs examined
existing floor space controls for standard
detached housing and integrated or small lot
housing. We found that the controls did not
differ between these types of housing and was
generally around 0.5:1, (ranging from 0.45:1 to
0.6:1.
Suggestion
To increase opportunities for housing diversity,
it would be preferable to not use FSR controls
in residential areas. However, if they are to
be used, the FSR for smaller lots should be
increased to at least 0.6:1 to 0.7:1.0.
Using the same FSR controls for both standard
homes and smaller homes makes it very difficult
to deliver well-designed smaller homes on
compact lots. Imposing an FSR of 0.5:1 on
smaller lots, means that lots below 280m² will
not be be able to accommodate a moderately
sized three bedroom house with a single
garage.

24 | Housing Diversity Guide DEVELOPMENT CONTROL CONSIDERATIONS
5.2 Minimum lot size
The use of minimum lot size provisions in
LEPs and/or DCPs need to be carefully
considered when planning for housing diversity,
particularly as this impretson of achieving
‘salt and peppering’ of house types. If a
‘blanket’ minimum lot size (designed to cater
for traditional house and lot sizes) is imposed
across residential areas, the ability to deliver
housing diversity is significantly reduced.
Providing housing mix to meet market demand
is also restricted by this control and in the worst
cases, can only be achieved through a rezoning
process.
Suggestions
Opportunities for the provision of housing
diversity should be considered through the
strategic planning process, particularly at
the local level and during master planning of
development projects.
Once housing needs have been identified, LEP
and DCP provisions regarding minimum lot
sizes should be drafted to ensure that housing
diversity objectives are able to be delivered.
The Standard LEP Template may be able to
provide guidance on how councils can draft LEP
provisions that provide for adequate housing
diversity that achieve principles of ‘integration’
and ‘salt and peppering’.
Courtyard homes at The Peninsulla, Perth, WA
Duplex at Monash Green Estate, Clayton, VIC

Housing Diversity Guide DEVELOPMENT CONTROL CONSIDERATIONS | 25
5.3 ‘Integrated housing’ controls
The intention of ‘integrated housing’ controls
is to ensure that the development of dwellings
on small lots is managed in order to deliver
a suitable amenity. However, this policy has
created some unintended consequences
including:
• Discouraging developers and builders from
constructing smaller homes. This is because
the ‘integrated’ development approval
requirements increase the time and risk in
the planning and approval process. Builders
must also borrow substantially more money
in order to complete construction of all the
dwellings before the land can be subdivided
and sold. As a result, it is easier, quicker,
less risky and more cost effective to simply
subdivide all lots to the minimum permissible
lot size.
• Reduction in the affordability of this housing
product. When developers and builders do
‘integrated’ developments, the increased
holding and development costs are passed
on to the purchaser. This results in housing
that does not represent value for money to
the purchaser when compared to the house
and land package on lots of 450m² and
above. The same house on a 440m² lot rather
than a 450m² lot could cost the buyer up to
an additional $40,000 due to the different
planning, regulatory and titling restrictions.
The barriers to the delivery of diverse housing
types on lots below 450m² has contributed to
the dominance of large single detached homes
being constructed on 450m² (15m x 30m) lots,
rather than a mix of dwelling types that meets
the housing needs of a diverse community.
Suggestion
The lot size threshold for integrated
housing could be lowered, provided certain
masterplanning and urban design principles are
maintained.
Townhouses and studio apartment at Hunterford, Oatlands

26 | Housing Diversity Guide DEVELOPMENT CONTROL CONSIDERATIONS
CASE STUDY
The cost effective delivery of housing diversity:
‘House and Land’ package versus ‘Turn Key’
integrated housing
Conventional delivery of new housing involves the sale of a house and land
package using two contracts, one for the land and one for the house. The
land developer sells the land and the builder sells the house using a building
contract with progress payments during construction. The alternative turn
key method for using ‘integrated’ housing requires payment for both the
land and the house on completion of the development.
A $450,000 house delivered using the turn key method will cost the home
buyer $40,000 more than if it was delivered using the conventional house
and land package method.
The ‘house and land’ package method of keeping the contract of sale of
the land separate from the sale of the house creates savings that can be
passed on to the home buyer in three ways:
1. Allowing the contract for the sale of the land to be settled before
construction starts reduces the holding costs to the developer by
approximately $12,000 (based on additional interest on the land and
building over a 6 month construction period @ 8%).
2. The home builder receives progress payments during construction
so the builder does not have to fund the construction through to
completion and incur finance interest costs that would also be passed
on to the home buyer. If the builder funds the full cost of construction
of the dwelling through to completion, the builder will also need to
make a margin on the borrowed funds which is normally about 10%
gross margin, equating to $20,000.
3. Stamp duty is reduced by about $8,000, as it is based on the land
sale price only, not the total price of land and house.
To avoid these additional costs it is important to be able to deliver smaller
lots and dwellings using the conventional delivery method, with the land
being subdivided prior to the commencement of construction.
The Treadstone Company

Housing Diversity Guide DEVELOPMENT CONTROL CONSIDERATIONS | 27
5.4 Site coverage
Site coverage controls are geared towards
reducing the amount of area at ground level that
is built on. The key objectives of site coverings
controls mainly relate to:
• Providing outdoor recreation areas for the
enjoyment of occupants
• Controlling the amount of impervious area
to reduce the load on storm water systems,
and
• To control the footprint, and therefore
density, at ground level.
Most development controls reviewed in
preparation of the Housing Diversity Guide
adopt a similar figure to the floor space
controls, with 50% of the site permitted to be
built on, with the remaining area not built upon.
This does not pose a significant concern for
smaller lots and dwellings, mainly because in
order to achieve an adequately sized home on a
small lot, there is a need to provide a two storey
house. In effect, this halves the footprint of the
house. However, site coverage controls limit the
options for single storey dwellings, which are
still in high demand, particularly by seniors.
Suggestion
In order to increase the supply of single storey
homes on smaller lots, an increase in site
coverage is required. If the FSR for single storey
homes, for instance, is increased to 0.7:1 then
site coverage should also be increased to a
similar figure (70%) for single storey homes.
5.5 Landscaped area
Landscaped area controls are very similar to site
coverage controls but are more focused toward
outdoor amenity, storm water management
and recreation. Landscaped areas exclude
hard paved or impervious areas with the aim
of simply directing the amount of ‘green’ or
pervious areas.
Using the landscaped area controls designed
for traditional lots on smaller lots may mean
that it will not be possible to accommodate
some house types on smaller lots, particularly
single storey dwellings.
Suggestions
Locating compact lot housing close to public
open spaces reduces the need for private open
space on each lot. This access to public open
space should be considered when destermining
landscaped area controls for small lot housing.
In addition, the combined effect of FSR, site
coverage and landscape area controls raises the
question as to whether all three are required.
Given that both site coverage and landscaped
area have very similar objectives, one or other
control could reasonably be used.
Duplex at Garden Gates, Mt Annan
Warehouse terraces at Caroline Springs, VIC

28 | Housing Diversity Guide DEVELOPMENT CONTROL CONSIDERATIONS
5.6 Building envelope and setback controls
Building envelope controls in the form of
setbacks and building height limits are used
to control amenity on the adjoining properties
and provide an attractive and integrated
streetscape. Minimum setbacks need to be
closely examined with smaller lots and dwellings
as any efficiencies or reductions in setback can
reduce the land take and increase affordability.
Most DCP’s reviewed in preparation of the
Housing Diversity Guide have similar controls
for front, side and rear setbacks. Front setbacks
ranged from 4m to 6m, side setbacks ranged
from 0.9m to 2m and rear setbacks from 3m to
6m. Most development controls were generally
consist on lower level setbacks but they differed
on controlling upper level setbacks.
Few DCPs allow zero setbacks on side
boundaries, which permit so-called ‘zero lot
line’ development. Most DCPs require side
setbacks of 0.9m down both sides of a property.
On a small lot, this is inefficient use of land that
reduces affordability.
Suggestions
It is preferable for setback controls to be
determined based on lot construction.
The absence of zero side setback controls is an
obstacle for small lot housing. However, zero
setbacks should only be permitted for certain
orientations:
• North-south oriented lots, with north
facing rear yards and primary living space
can accommodate zero setback on side
boundaries,
• East-west oriented lots should be zerolotted
on the southern boundary, but only if
the zero lot house is single storey at the zero
lot boundary. ‘Courtyard’ style homes with
north facing courtyards are the preferred
house type for east-west zero lotted
properties.
If these conditions can be met, zero side
setbacks should be permitted for compact lots.
Front setbacks could potentially be decreased
in many areas without substantially affecting
streetscape or amenity. The objective should be
to maintain a consistant streetscape character.
Manor Home at Metro Village 3175, Dandenong, VIC
Courtyard homes at The Peninsulla, Perth, WA

Housing Diversity Guide DEVELOPMENT CONTROL CONSIDERATIONS | 29
5.7 Solar access
Solar access controls are focused on achieving
amenity and environmentally sustainable
design. These controls can potentially override
every other control and, for small lots, become
extremely onerous. The controls specify
the amount of sunlight required in winter to
internal spaces and are usually expressed as a
proportion of external private open space.
Most councils require a minimum of three hours
of solar access to an internal living space as
well as a proportion (usually 50%) of external
private open space. However, it is possible
to design a home to meet all of the site and
building envelope controls, but fail solar access
provision.
Suggestion
Lot and house orientation requirements can be
used to achieve suitable solar access for smaller
lots and homes, instead of achieving this
objective using a minimum number hours of
sunlight. A simple way to provide solar access
is to orientate living areas and main landscaped
areas to the north.
‘Blackwood’ cottage home at Forest Glade, Parklea

30 | Housing Diversity Guide HOUSING DIVERSITY EXAMPLES
6.0
housing diversity
examples
This section presents homes that are currently being designed and built in
Australia by a range of builders and developers, including Landcom. These
examples do not represent the full range of homes that might fit under the
‘housing diversity’ banner. However, these examples have been chosen
for detailed examination as they can be easily integrated into traditional
residential areas. They are in demand in the market at present, and they are
generally readily supported by the existing planning framework.
Housing diversity examples discussed below include:
• Secondary dwellings or ‘Granny Flats’
• Cottage lot detached dwellings
• Duplexes or semi-detached dwellings
• Stratum titled studio housing
• Zero lot detached dwellings
• Triplexes and ‘Manor Homes’
• Terraces or townhouses
Duplex home design

Housing Diversity Guide HOUSING DIVERSITY EXAMPLES | 31
6.1 Secondary dwellings or ‘Granny Flats’
Secondary dwellings can be easily included in
a typical residential suburb whether on top of
garages, in rear lanes, or incorporated into the
overall volume of the main house. Their main
purpose is to provide a small, self contained
living space that is either attached or separate
from the principal dwelling.
Secondary dwellings, by virtue of the name,
are subordinate to a principal dwelling, and
are therefore significantly smaller in size.
Secondary dwellings can be either attached to
the principal dwelling, or detached.
Garage-top studio apartments are now a
standard housing product in most Landcom
projects, and are highly sought after by
homeowners who want to use it for a wide
range of purposes including:
• rental accommodation to supplement their
mortgage payments
• additional private retreat for family members,
including teenage children or older parent
and/or
• home office.
A well-designed garage-top apartment might
fulfil all of these purposes over a period of time.
The Standard LEP Template for NSW LEPs
includes a standard definition and a standard
clause for secondary dwellings which controls
their size and ensures that they cannot be
subdivided.
The SEPP Affordable Housing, gazetted in July
2009, has made secondary dwellings permissible
with consent in a number of residential zones,
making it much easier for these types of
dwellings to be built.
Garage top studio apartment at Park Central, Campbelltown

32 | Housing Diversity Guide HOUSING DIVERSITY EXAMPLES
6.2 Stratum titled studio housing
An important evolution of the secondary
dwelling concept is the ability to stratum title
the dwelling, enabling it to be purchased
separately from the principle dwelling. The size
and design of strata titled studios are generally
identical to that of secondary dwellings.
However, as strata titled studios are separately
titled, they do not fall under the same definition
as secondary dwellings.
Stratum titled studios need to be carefully
designed and delivered to ensure they do not
impact negatively on an area’s amenity. As a
consequence, this housing type is most often
associated with either master planned urban
renewal areas or master planned urban release
areas.
6.3 Cottage lot detached dwellings
Cottages are simply small single storey detached
homes on small lots. Cottages are designed
specifically to integrate seamlessly into a
traditional residential streetscape. Cottage lots
may be of similar width as the traditional lots,
but have a shallower depth. Alternately, they
may have a narrower frontage.
Garage Top Studio at Garden Gates
Detached cottage, Forest Glade, Parklea

Housing Diversity Guide HOUSING DIVERSITY EXAMPLES | 33
6.4 Zero lot detached dwellings
Zero lot detached dwellings are those that have
one or more walls adjoining the boundary with
the next lot. When designed carefully, zero
lot housing can offer the feeling and amenity
benefits of traditional detached dwelling, whilst
using the land more efficiently.
6.5 Duplexes or ‘semi-detached’ dwellings
Duplexes or ‘semis’ are typical diverse housing
models which can blend easily into relatively low
density residential suburbs without significantly
affecting the character of the neighbourhood.
When designed well, duplexes and semis will
be of a similar scale and character as a typical
detached family house and may not be able
to be differentiated from detached homes by
casual observers.
Care needs to be taken in the design and location
of these house types within a neighbourhood.
Side by side duplexes or semis may work best
where situated on a corner lot or where they
are designed with rear access. This helps to
reduce the visual impact of the garages when
the homes are viewed from the street.
Duplex at Garden Gates, Mt Annan
Zero lot homes, The Outlook Walk, by Stockland
Triplex at Garden Gates, Campbelltown

34 | Housing Diversity Guide HOUSING DIVERSITY EXAMPLES
6.6 Triplexes and ‘Manor Homes’
Triplexes and ‘Manor Homes’ are a collection
of three or four strata or torrens titled homes
that are combined into one building of a similar
scale and character as surrounding residential
homes. These are often designed to look like
one large house.
Parking is a key design issue for this housing
type. Similar to duplexes, these dwellings
benefit from rear lane access and corner
locations to reduce the visual impact of their
garages. On corners they can also be designed
so that the building addresses both streets.
6.7 Terraces and townhouses
Terraces are a traditional housing model
delivering a more urban solution to low -
medium density housing. They generally require
a rear lane to manage access to rear garages.
Generally a 7.5m to 8.5m frontage is the width
of terrace homes being built today because this
satisfies the current market requirements, while
still remaining a relatively small lot. In more
urban locations, a narrower terrace lot can also
work well.
Terraces at The Ponds

Housing Diversity Guide DETAILED TESTING | 35
2.0 7.0 The context for
Detailed testing of
four housing types
housing diversity
In order to test the housing diversity principles developed for this guide, four
housing types were chosen for more detailed analysis:
• Detached cottage home
• Zero lot line double storey home
• Attached duplex
• Four dwelling ‘Manor Home’
The indicative lots sizes and dwelling layouts for this analysis were developed
by testing house designs against the housing diversity principles as well as a
range of current council development controls.
All of the homes are cost efficient, simple forms which are efficiently sited
to avoid excessive land consumption and construction materials. Each lot
provides a level of visual privacy to and from adjoining development and
includes outdoor living areas, which have solar access comparable with a
standard sized lot.
A range of ‘ideal’ lot sizes offer a high degree of diversity while ensuring the
homes can be integrated within standard residential neighbourhoods. The
range of lot sizes also allows for a variety of entry price points, which in turn
facilitates a variety of tenure options and household types. For example,
first home owners, retirees, investors or community housing providers could
potentially be attracted by these housing typologies.
All homes accommodate ‘above baseline’ environmental sustainability,
with considered materials, use of passive energy for heating and cooling,
appropriate orientation and planning to take advantage of warming winter
sun and cooling; summer breezes; and waste minimisation through the
construction process.
The example lot and dwelling price assessment example lots was completed
in March 2009. The prices are indicative, and demonstrate the ability to
produce more moderately priced house and land packages can be produced
when lot sizes are reduced.

36 | Housing Diversity Guide DETAILED TESTING
7.1 Home pricing assessment
Part of the testing of house types involved
obtaining detailed assessments of the house
and lot price. This permitted an assessment
of the overall affordability of the product. This
work showed that efficient design of both the
home and lot are important in keeping the
production costs down.
As part of the assessment process, the four
example home types were priced by a Sydneybased
project home builder, Rawson Homes.
The pricing assumed the following:
• site foundation material classification M
• no allowance for general site works including
retaining walls and infrastructure connection
• standard domestic construction with midlevel
finishes and fittings
• no central heating or air conditioning.
The pricing illustrated that the four sample
house types could be constructed for between
$130,000 to $200,000. This equates to an
approximate cost of between $1200 to $1500
per square metre.
This desktop analysis revealed that the homes
are simple to construct and therefore are very
cost effective. Dwelling building costs are as
follows:
Detailed pricing of land and home components
Detached cottage lot home $172,000
Zero lot line double storey home $170,000
Attached duplex lot home (Unit 1) $132,000
Attached duplex lot home (Unit 2) $140,000
Manor home lot home (Unit 1) $186,000
Manor home lot home (Unit 2) $137,000
Manor home lot home (Unit 3) $142,000
Manor home lot home (Unit 4) $200,000
Hunterford, Oatlands

Housing Diversity Guide DETAILED TESTING | 37
7.2 Lot pricing assessment
As part of the pricing assessment, Landcom
examined two established neighbourhoods in
Sydney and obtained approximate land pricing
for both. The lot pricing below indicates the
range for ‘The Ponds’ in Sydney’s North West
and ‘One Minto’, in Sydney’s South West.
In both locations an allowance has been made
for fixed costs pertaining to the land such as
local contributions. In addition, the costing
includes a variable component for the land and
services. This, together with the build costing,
demonstrates that if built today the compact lot
homes fall within a price range of approximately
$210,000 (duplex home at One Minto) to
$400,000 (cottage home at The Ponds).
The Ponds – North West Sydney
Allow $70,000 per lot (fixed costs such as
contributions) plus $500 per m² (for services
and land).
• 600 m² lot: $70,000 + $300,000 = lot price
$360,000
• 450 m² lot: $70,000 + $225,000 = lot price
$295,000
• 300 m² lot: $70,000 + $150,000 = lot price
$220,000
• 150 m² lot: $70,000 + $75,000 = lot price
$145,000
One Minto – South West Sydney
Allow $50,000 per lot (fixed costs such as
contributions) plus $250 per m² (for services
and land).
• 600 m² lot: $50,000 + $150,000 = lot price
$200,000
• 450 m² lot: $50,000 + $112,500 = lot price
$162,500
• 300 m² lot: $50,000 + $75,000 = lot price
$125,000
• 150 m² lot: $50,000 + $32,500 = lot price
$82,500
Manor Lot Home
Duplex Lot Home

38 | Housing Diversity Guide DETAILED TESTING
Detached Cottage Home
18m
17m
9m
Designed specifically to be integrated within a
standard streetscape, this detached home on
a 300m² lot could potentially accommodate a
single level three bedroom cottage. It provides
generous living areas directly accessing the
outdoor open space. A simple built form
maximises lot efficiency. The cottage lot is
designed to be orientated with East or West
to the rear.
Building cost: $172,000
Lot cost:
North West:
300 m² lot = $70,000 + $150,000 = lot price
$220,000
South West:
300 m² lot = $50,000 + $75,000 = lot price
$125,000
Indicative Total Cost:
North West: $392,000
South West: $297,000
N
N
Figure 2.5a - The Cottage

Housing Diversity Guide DETAILED TESTING | 39
Zero Lot Line Double Storey Home
30m
28m
5m
The Zero lot design could potentially site a two storey, three
bedroom dwelling and potentially offers the most efficient
land take of the compact lots in this Guide with a lot size of
180m². The entire ground floor accommodates open plan
living areas, allowing excellent cross ventilation. The upper
floor includes three large bedrooms and a study niche. The
villa lot is designed to be orientated with North to the rear.
Building cost: $172,000
Lot cost:
North West:
180m² lot = $70,000 + $90,000 = $160,000
South West:
180m² lot =$50,000 + $45,000 = $95,000
Indicative Total Cost:
North West: $330,000
South West: $265,000
Figure 2.5b - The Zero lot line double storey home

40 | Housing Diversity Guide DETAILED TESTING
Attached Duplex Home
13.5m
22m
Designed for integration within communities of
larger, two storey homes, the Duplex Lot home
appears to be a single dwelling when viewed from the
street. Simple, open plan design ensures a generous
living area, and two bedrooms on the upper floor.
The duplex lot is designed to be orientated with
North and West to the rear.
Building cost:
Duplex lot home (unit 1): $132,000
Duplex lot home (unit 2): $140,000
Lot Cost:
North West:
160mm² for each lot =
$70,000 + $80,000 = $150,000
N
N
South West:
160m² for each lot =
$50,000 + $40,000 = $90,000
Indicative Total Cost:
North West: $282,000 (Unit 1)
to $290,000 (Unit 2)
South West: $222,000 (Unit 1)
to $230,000 (Unit 2)
Figure 2.5c - The Duplex

Housing Diversity Guide DETAILED TESTING | 41
Four Dwelling ‘Manor Home’
10.5m
17m
In master planned communities, the Manor Home
lot is ideally sited in prominent locations, such
as entry points and corner lots, where it offers
a significant presence similar in scale to larger
homes. The manor lot consists of (2 x 3) and (2 x 2)
bedroom homes, arranged as terraces under one
roof. Careful planning of open space and access
ensures each dwelling offers the same amenity and
privacy as larger sites. Car spaces are provided for
each dwelling. The Manor lot is designed to be
orientated with North to the rear. The concept
operates best on corner lots or with rear lanes, so
as to manage the potential for garage dominance
when viewed from the street.
Building cost:
Manor home lot home (unit 1): $186,000
Manor home lot home (unit 2): $137,000
Manor home lot home (unit 3): $142,000
Manor home lot home (unit 4): $200,000
Lot Costs:
North West:
224m² lot (end-run dwelling)
= $70,000 + $112,000 = $182,000
North West:
140m² lot (mid-run dwelling)
= $70,000 + $70,000 = $140,000
South West:
224m² lot (end-run dwelling)
=$50,000 + $56,000 = $106,000
South West:
140m² lot (mid-run dwelling)
=$50,000 + $35,000 = $85,000
Indicative Total Cost:
North West:
Unit 1: $368,000 Unit 2: $277,000
Unit 3: $282,000 Unit 4: $381,000
South West:
Unit 1: $292,000 Unit 2: $222,000
Unit 3: $227,000 Unit 4: $306,000
Figure 2.5d - The Manor Home

This Housing Diversity Guide has been
developed by examining current best
practice from developers and builders
around Australia.