Property Council NSW Executive Director Katie Stevenson said the decision was a key milestone in addressing Sydney's housing shortage and demonstrated what could be achieved when state and local governments work together.
"Today's announcement could turn this critical transport corridor into a vibrant precinct that delivers thousands of much-needed new homes," Ms Stevenson said.
"We congratulate the NSW Government and Inner West Council for stepping up to the challenge of going beyond their share - currently set at 7,800 new homes by 2029 – of the National Housing Accord targets. This is the kind of ambition Sydney needs."
Ms Stevenson said the announcement reflected many of the priorities the Property Council raised in its submission to Inner West Council's Our Fairer Future Plan.
"We strongly supported Council's ambition to exceed its housing targets and the recognition that transport corridors like Parramatta Road are the right places for density," she said.
"We also welcomed Council's decision to adopt a carefully considered affordable housing contribution and to consider development feasibility in preparing the Plan - these are important steps in getting the balance right between ambition and delivery."
The Property Council's submission also called for higher floor space ratios and greater flexibility to create larger sites, the inclusion of additional areas within 800 metres of transport hubs, and safeguards to protect nearly 1,400 homes already in the pipeline through existing State Significant Development applications.
"Planning decisions must be matched with the right feasibility settings. If the allowed building density is too low or affordable housing contributions are not offset with genuine uplifts, we risk good plans sitting on paper rather than turning into homes on the ground," Ms Stevenson said.
Ms Stevenson said the next step must be aligning planning, infrastructure, and investment settings to make delivery viable.
"Turning plans into homes means will require further investment in transport, community facilities and streamlined approvals to ensure the Parramatta Road corridor grows into a place that provides housing, jobs, services and vibrant neighbourhoods," she said.
