The proposed legislative change will allow new development opportunities within key precincts such as CommBank Stadium in Parramatta, Hunter Park in Newcastle and the WIN Entertainment precinct in Wollongong - turning underused land into vibrant destinations that operate year-round.
Property Council NSW Executive Director Anita Hugo said the reform made sense for both the economy and the community.
"This is a sensible, future-focused move that recognises the value of integrating accommodation, entertainment and transport," Ms Hugo said.
"Unlocking land around venues like these will help those precincts grow as entertainment hubs and employment centres - creating new opportunities for local businesses and the visitor economy."
Ms Hugo said the reform aligns with the Government's target of expanding the state's visitor economy to $91 billion annually by 2035.
"These precincts are ideally positioned to draw more visitors and activity across the week, not just on event days. These are valuable assets that have an important role to play in improving productivity.
"Allowing smart, mixed-use development on Venues NSW land will create more places for people to stay, spend and enjoy - that's good for the economy and great for regional communities," she said.
Property Council Western Sydney Director Ross Grove said unlocking Venues NSW sites for new investment will also complement the significant infrastructure already being delivered in Western Sydney, including the new airport, Metro lines and improved road connections.
"This is a positive move for Parramatta, which has experienced a tsunami of investment in sporting, cultural and transport infrastructure.
"Places surrounding CommBank Stadium, Powerhouse Parramatta, the coming rebuild of the Riverside Theatre, and Parramatta Light Rail ought to be supported with more housing not less – and any legislation which makes this easier to happen is a welcome step forward.
"This reform will allow the land around Western Sydney's key venues the chance to evolve into genuine, connected precincts," Mr Grove said.
