Plan aims to boost jobs, attract investment, and support housing construction
The New South Wales Minns government has recently introduced its Industrial Lands Action Plan, outlining a framework to secure and manage industrial land to support economic growth, create jobs, and bolster housing construction across the state.
The plan aims to unlock more land for industrial purposes, such as warehouses, factories, distribution centres, and depots. These facilities play a key role in supporting urban economies by generating employment and producing essential construction materials needed for housing development.
Under the strategy, industrial lands will be classified as state, regional, or locally significant, with each category designed to fulfil a distinct role in driving economic activity and guiding infrastructure investments.
With the sector facing growing challenges, including escalating land values, rising rents, and low vacancy rates in some industrial areas, the action plan seeks to address these issues by expanding the supply of industrial land. Key initiatives include developing a statewide categorisation framework to replace the current “Retain, Review, and Plan and Manage” policies, amending planning policies to provide greater flexibility for industrial zoning, and establishing an Employment Land Development Program to align infrastructure investments with land supply over the next 20 years.
The plan will also assess underutilised industrial areas that could be repurposed to support alternative employment or housing, aligning with broader government priorities.
“After years of neglect, our new statewide approach will plot the steps to help us grow our industrial pipeline across the state,” said Paul Scully (pictured above left), minister for planning and public spaces. “In 2024 alone, industrial-related industries contributed approximately $174 billion in gross value to the NSW economy.
“The Industrial Lands Action Plan provides industry, developers, and councils with a holistic and statewide approach to actively plan, secure, manage, and monitor industrial lands across NSW. By unlocking the supply of well-located, serviced, and competitive industrial land, we are helping to drive investment, create jobs, and support the construction industry in the delivery of housing.”
The Property Council of Australia has welcomed the plan, calling it a long-overdue step to address the critical shortage of zoned and serviced industrial land in NSW.
Katie Stevenson (pictured above right), NSW executive director of the Property Council, stressed the urgency of implementing the plan, citing data from Atlas Economics, which forecasted less than one year’s supply of serviced industrial land in Sydney as of October 2024.
“Our focus is on outcomes – what matters now is that the plan is delivered quickly and effectively to address the urgent needs of industry and the economy,” she said. We’ll continue to work with government on solutions to make the vision outlined in the plan a reality,” she said.
According to Stevenson, the next few months would be crucial for unlocking industrial lands and ensuring the right infrastructure and planning support to drive long-term economic and employment growth.
“We have no time to lose,” she said.
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