Onyx – This is a complicated legal matter therefore it would be wise to seek legal advice.
Restrictive covenants can be binding and can override local environmental plans, therefore, by extrapolation, the same could apply to by-laws.
For more information see here: https://elringtons.com.au/2011/09/restrictive-covenants/
I have read other articles that claim that restrictive covenants are rarely enforceable past the first purchaser.
See the following case notes for an example of the power of a restrictive covenant: