Western Sydney Airport Granny Flat Ban Reversed: What It Means for Homeowners 2026
Author: giantA Pty Ltd — Sydney Architects & Building Designers
Published: 17 July 2026 | Reading time: 6 min
Related: Complete Granny Flat Guide · Granny Flat Costs
Breaking News: NSW Reverses 6-Year Granny Flat Ban
In a significant move for Sydney's housing market, the NSW Government has reversed a six-year ban on granny flats in areas surrounding the soon-to-be-opened Western Sydney International (Nancy-Bird Walton) Airport.
Announced in July 2026, this policy change affects approximately 1,500 residents across five local government areas, unlocking new housing options in one of Sydney's fastest-growing regions.
Which Areas Are Affected?
The ban reversal applies to five Western Sydney councils:
| Council | Affected Suburbs (Examples) | Population Impact |
|---|---|---|
| Wollondilly Shire | Camden Park, Picton, Tahmoor, Bargo | ~500 properties |
| Fairfield City | Bonnyrigg, Edensor Park, Greenfield Park | ~400 properties |
| Camden Council | Catherine Field, Leppington, Oran Park | ~300 properties |
| Liverpool City | Hoxton Park, Horningsea Park, Carnes Hill | ~200 properties |
| Penrith City | Badgerys Creek, Luddenham, Wallacia | ~100 properties |
If you own property in these areas, you can now build a secondary dwelling (granny flat) under the Housing SEPP 2021 — something that has been prohibited since 2020.
What Changed? The Full Story
The Original Ban (2020–2026)
In 2020, the NSW Government imposed restrictions on "noise-sensitive developments" in areas under flight paths for the new Western Sydney International Airport. The goal was to prevent population growth in areas most affected by aircraft noise.
Banned developments included: - Residential secondary dwellings (granny flats) - Schools and childcare centres - Hospitals and nursing homes - Places of worship
Rationale: Aircraft noise from the new airport (scheduled to open 2026) would make these areas unsuitable for residential use.
Why the Reversal?
Several factors drove the July 2026 policy change:
- Housing crisis pressure: Sydney faces a severe housing shortage. The ban was blocking thousands of potential homes.
- Airport noise mitigation: New aircraft technology ( quieter engines, improved flight paths) has reduced projected noise impacts.
- Community feedback: Residents argued the ban was overly broad, affecting areas with minimal noise exposure.
- Economic growth: Western Sydney is booming. The airport is expected to create 28,000 jobs by 2031 — workers need housing.
- Government housing targets: NSW needs 377,000 new homes by 2029. Every granny flat counts.
Quote from Judy Hannan MP, NSW Minister for Planning:
"This is a significant milestone for Western Sydney. We're balancing the need for more housing with sensible planning controls. Residents in these areas can now access the same housing options as the rest of NSW."
What Can You Build Now?
Increased Size Limit
Under the reversal, secondary dwellings in the affected areas can be built up to 85m² — 41% larger than the standard 60m² limit.
| Feature | Standard NSW | Western Sydney Airport Zone |
|---|---|---|
| Maximum floor area | 60m² internal | 85m² internal |
| Lot size (CDC) | 450m² minimum | 450m² minimum |
| Height | 4.5m (single storey) | 4.5m (single storey) |
| Setbacks | Standard SEPP | Standard SEPP |
| Approval | CDC or DA | CDC or DA |
What Does 85m² Look Like?
An 85m² granny flat is significantly more livable than 60m²:
- 60m² typical: 2 bedrooms, 1 bathroom, compact kitchen/living
- 85m² typical: 2 bedrooms + study, 1 bathroom, full-size kitchen, separate living/dining, laundry
For homeowners, this means: - ✅ Elderly parents can age comfortably with more space - ✅ Adult children have room for a home office - ✅ Tenants pay premium rent for larger, more functional space - ✅ Potential for short-term rental (Airbnb) with extra bedroom
How to Get Approval in the Western Sydney Airport Zone
Step 1: Check Your Property
Use the NSW Planning Portal to confirm: - Your property is in the affected council area - Your lot size is ≥ 450m² (for CDC) - Your zoning is R1, R2, R3, R4, R5, or RU5
Step 2: Assess Aircraft Noise
Even though the ban is lifted, aircraft noise is still a consideration:
| Noise Exposure Level | Recommendation |
|---|---|
| High (ANEF > 25) | Consider soundproofing: double-glazed windows, acoustic insulation |
| Medium (ANEF 20–25) | Standard construction with good insulation |
| Low (ANEF < 20) | Standard construction sufficient |
Check your property's ANEF (Australian Noise Exposure Forecast) rating via the Aircraft Noise Ombudsman.
Step 3: Design for 85m²
With the larger size limit, you can design a more functional granny flat:
Recommended layout for 85m²: - Bedroom 1: 3.0m × 3.6m (10.8m²) - Bedroom 2 / Study: 3.0m × 3.0m (9.0m²) - Bathroom: 2.4m × 2.4m (5.8m²) - Laundry: 1.5m × 2.0m (3.0m²) - Kitchen: 2.4m × 3.0m (7.2m²) - Living / Dining: 5.0m × 4.0m (20.0m²) - Entry / Hallway: 4.0m² - Total: ~85m²
Step 4: BASIX Compliance
All granny flats require a 7-star BASIX certificate. Key considerations for Western Sydney:
- Hot climate: Focus on cooling efficiency, shading, ventilation
- Solar PV: Highly recommended — Western Sydney has excellent solar exposure
- Water efficiency: Drought-prone area — rainwater tanks add BASIX points
- Materials Index: New 2026 requirement — mass timber and local materials score well
Step 5: CDC or DA Approval
| Pathway | Timeline | Best For |
|---|---|---|
| CDC | 10–20 days | Standard design, SEPP-compliant lot |
| DA | 6–12 weeks | Non-standard design, complex site |
At giantA, we handle both pathways. Contact us for a free eligibility check.
Cost Implications
Does 85m² Cost More Than 60m²?
Yes, but not proportionally. Construction costs per m² decrease slightly as size increases:
| Size | Estimated Cost | Cost/m² |
|---|---|---|
| 60m² (standard) | $120k – $150k | $2,000 – $2,500 |
| 85m² (airport zone) | $150k – $190k | $1,765 – $2,235 |
Why the per-m² cost drops: - Kitchen and bathroom (expensive rooms) are similar size - Foundation and roof costs don't scale linearly - Only living areas and bedrooms increase
Soundproofing Costs
If your property is in a high-noise area, budget for acoustic upgrades:
| Upgrade | Cost | Impact |
|---|---|---|
| Double-glazed windows (low-E) | +$3,000 – $8,000 | Noise reduction + energy efficiency |
| Acoustic insulation (walls + ceiling) | +$1,500 – $3,000 | Significant noise reduction |
| Sealed doors | +$500 – $1,000 | Prevents noise leakage |
| Mechanical ventilation | +$1,000 – $2,000 | Allows windows to stay closed |
| Total soundproofing | +$6,000 – $14,000 | Comfort in high-noise areas |
Investment Opportunity
Rental Yields in Western Sydney
Western Sydney has some of Sydney's strongest rental demand:
| Suburb | Median House Rent | Granny Flat Rent (est.) | Yield on $170k Build |
|---|---|---|---|
| Oran Park | $700/week | $550/week | 17% |
| Leppington | $680/week | $520/week | 16% |
| Edensor Park | $650/week | $500/week | 15% |
| Hoxton Park | $620/week | $480/week | 15% |
| Picton | $580/week | $450/week | 14% |
Key drivers: - Airport jobs (28,000 by 2031) - Western Sydney Aerotropolis development - Infrastructure investment ($20B+ pipeline) - Population growth (2M+ by 2036)
Frequently Asked Questions
Is my property in the ban reversal zone?
Check your property address against these five councils: Wollondilly, Fairfield, Camden, Liverpool, and Penrith. If your property is in one of these LGAs and was previously subject to the airport noise ban, you can now build a granny flat.
Can I build a granny flat up to 85m² anywhere in NSW?
No. The 85m² limit only applies to the five Western Sydney councils affected by the airport noise ban reversal. The standard 60m² limit applies everywhere else in NSW.
When does the new rule take effect?
The reversal took effect in July 2026. You can now lodge CDC or DA applications for granny flats in the affected areas.
Will aircraft noise affect my granny flat's value?
It depends on your specific location. Properties directly under flight paths may see reduced demand, but areas with noise mitigation (double glazing, insulation) remain attractive to tenants working at the airport or Aerotropolis.
Can I rent my 85m² granny flat on Airbnb?
Short-term rental regulations in NSW allow granny flats to be used for short-term rental (up to 180 days/year in Greater Sydney) if they meet fire safety and insurance requirements. The larger 85m² size makes Airbnb more viable.
Why Choose giantA for Your Western Sydney Granny Flat?
At giantA Pty Ltd, we understand Western Sydney's unique challenges and opportunities:
✅ Local expertise: Parramatta-based, serving Western Sydney councils daily
✅ Airport zone knowledge: We understand the specific requirements for Wollondilly, Fairfield, Camden, Liverpool, and Penrith
✅ 85m² design specialists: We maximise the new size limit for comfort and value
✅ Noise mitigation design: Acoustic solutions for high-ANEF properties
✅ Aerotropolis insights: We design for the future of Western Sydney
✅ End-to-end service: From design to BASIX to approval — one contact, one team
📞 Call: +61 488 880 787 | 📧 Email: info@gianta.com.au
📍 Visit: Parramatta CBD, Western Sydney
Resources
- NSW Government Announcement
- Western Sydney International Airport
- Aircraft Noise Ombudsman
- giantA Complete Granny Flat Guide 2026
- giantA Granny Flat Costs
- NSW Planning Portal — Secondary Dwellings
Last updated: 17 July 2026. Policy details may change. Always verify current regulations with NSW Planning and your local council.
giantA Pty Ltd | Licensed Building Designer | BASIX Accredited Assessor