Tens of thousands of homes could be built near four stations as part of a blanket high-density rezoning around those and other transport hubs.
Plans for the initial fast-tracked precincts were revealed on Tuesday as part of a strategy the government says will rebalance housing growth around new metro stations and existing train infrastructure.
Kellyville and Bella Vista, in Sydney's northwest, will be among the fast-tracked precincts as an existing metro line is linked up with a soon-to-open route under the city centre.
More than 20,000 extra homes could be delivered in a rezoning of the area around the two suburban stations.
Those houses would be supported by 10,000 additional jobs and up to 1650 affordable properties could be delivered under the plans.
Similar proposals at Hornsby, northwest of Sydney's city centre, and Macquarie Park, in the city's north, are tipped to provide 5000 and 4600 homes respectively.
Paul Scully has revealed the high-growth areas earmarked in the transport-linked housing plan. (Bianca De Marchi/AAP PHOTOS)
The projects are predicted to collectively deliver 30,000 homes, although the housing tally represents only a fraction of the 377,000 extra properties NSW needs to build within five years under its nationally agreed targets.
Planning Minister Paul Scully insisted the state could still hit that number despite approvals and completions consistently lagging the required tally of 75,000 per year.
"About two-thirds of those (377,000) are in the planning system for approval or under construction at some point," he said.
"We remain confident we've set, and through all levels of government agreed on, an ambitious (and) realistic target."
Mr Scully said the mini-cities represented a blueprint for Sydney's future based on infill development rather than further sprawl.
But Opposition Leader Mark Speakman labelled the announcement "density without infrastructure", arguing facilities such as schools and hospitals were left out of the plan.
"If you're going to have more density around metro stations you've got to provide for schools, hospitals, police, public transport and open space … we're seeing none of that," he said.
"Bella Vista and Kellyville, where there are 20,000 new homes proposed, there's a proposal for only one extra school and very little in the way of extra open space."
The fast-tracked precincts will get a share in more than $500 million put aside for road upgrades, transport links, open spaces and other community infrastructure.
They are among eight "priority high-growth areas" earmarked for greater density under the transport-linked housing plan.
Rezoning of the sites, which include locations in Sydney's inner west and lower north shore, will create capacity for nearly 50,000 homes over 15 years, the government says.
Housing Now chair David Borger said the government's plan was a great step forward and capitalised on the $21 billion city metro project.
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