Quick Summary
Frenchs Forest and Forestville sit within NSW's LMR housing zones and offer some of Sydney's strongest development fundamentals
Both suburbs have a critical undersupply of medium-density housing, creating strong buyer demand for new townhouses
Typical LMR sites feature 15-18m frontages and around 700sqm of land, well-suited to Pattern Book-compliant designs
Townhouse end sale prices average $19,000-$20,000 per sqm, compared to $10,000-$12,000 per sqm in Castle Hill
Despite land values running around 11% higher than Castle Hill, the 66-90% margin differential makes the numbers work
Developers moving from Western Sydney are finding more sustainable yields on the Northern Beaches
Intro
Across New South Wales' 171 Low and Mid Rise (LMR) housing zones, Frenchs Forest and Forestville on Sydney's Northern Beaches present some of the strongest fundamentals for viable Pattern Book development.
Why These Suburbs Have an Undersupply of Medium-Density Housing
Both suburbs have a critical undersupply of medium-density housing. Apartment stock is virtually non-existent, and existing townhouse inventory largely dates back two or more decades. This imbalance has created a niche market for downsizer and lifestyle buyers seeking modern, low-maintenance living in premium coastal locations.
Typical LMR Site Parameters in Frenchs Forest and Forestville
LMR sites in these areas commonly feature 15-18m frontages and approximately 700sqm of land, ideal parameters for Pattern Book-compliant designs. Flood and bushfire constraints are minimal, meaning most sites are readily developable within the current Pattern Book planning framework.
The Financial Case: Northern Beaches vs Western Sydney
From a financial standpoint, the Northern Beaches offers a clear value gap. Townhouse end sale prices average $19,000-$20,000 per sqm of internal living space, compared to $10,000-$12,000 per sqm in Castle Hill. Despite comparable construction costs, this margin differential of 66-90% significantly elevates project feasibility on the Northern Beaches.
Land Values and Why the Numbers Still Work
Average land values in the Frenchs Forest and Forestville LMR zone sit around $3,700 per sqm, approximately 11% higher than Castle Hill. The superior resale outcomes more than offset that acquisition cost differential.
The Opportunity Window for Developers
The current environment presents an opportunity window: supply remains constrained while buyer demand for well-located low-rise housing continues to rise. Developers transitioning from Western Sydney are finding more sustainable yields in the Northern Beaches market.
For current LMR listings and feasibility insights, visit www.thornproperty.com.au.
FAQs
What is LMR zoning in NSW?
LMR (Low and Mid Rise) zoning allows medium-density housing such as townhouses and low-rise apartments in designated suburbs across New South Wales.
Why are Frenchs Forest and Forestville good for LMR development?
Both suburbs offer large LMR-zoned sites, minimal flood and bushfire constraints, and townhouse end sale prices of $19,000-$20,000 per sqm, among the strongest in Sydney.
How do Northern Beaches returns compare to Western Sydney?
Townhouse end sale prices on the Northern Beaches are 66-90% higher per sqm than comparable Western Sydney suburbs like Castle Hill, despite similar construction costs.
What is the typical site size for LMR development in Frenchs Forest?
Most LMR sites in Frenchs Forest and Forestville feature 15-18m frontages and around 700sqm of land, which suits Pattern Book-compliant townhouse designs.
What is the NSW Pattern Book?
The NSW Pattern Book is a state government design framework offering pre-approved building templates to streamline development approvals for medium-density housing.
Are there flood or bushfire risks for LMR sites in these suburbs?
Flood and bushfire constraints in Frenchs Forest and Forestville are minimal compared to many other Sydney suburbs, making most sites readily developable.