Proposed reforms to the state’s residential design codes – or R-Codes – as announced by the West Australian Government last week, would be game changing for many ‘mum and dad’ property owners across Perth.
One of the key draft changes on the table would abolish the average lot size requirement for land coded R20 and below.
This would allow residential property owners on 700 square metre blocks to subdivide – down from the current requirement of 900 square metres.
As the R20 density code generally applies to the most common suburban residential properties across the Perth metropolitan area, this change could enable over 50,000 existing properties to be subdivided.
The Impact
At Effective Property Solutions (EPS), we predict the reforms, if implemented, will spark a wave of crucial smaller subdivision projects.
“This new reform will definitely open up various small subdivision opportunities for mum and dad property owners in multiple ‘infill’ suburbs in Perth, making it significantly easier for this type of project to get off the ground,” says EPS Founder and Managing Director, Erwin Edgliner.
“Under the current zoning, owners of these properties are forced to buy an adjoining property to be able to reach the 900 square metre requirement to undertake a subdivision development, which is a sizeable hurdle.”
Mr Edlinger – who has been involved with half a dozen developments of this kind under the current system – says while some property owners have the means to overcome the hurdle, many do not.
The Upsides
“In removing this barrier to development, the reforms would deliver valuable wealth creation opportunities for these property owners and their families, and tie into new legislation that limits negative gearing for residential property investments to new builds,” he explains.
“Perhaps most importantly, it would also provide much-needed new housing in established suburbs across the Perth metropolitan area where demand is strong and supply is lacking.”
The local government areas expected to be most impacted by the changes include Joondalup, Stirling, Wanneroo, Canning and Cockburn.
The reforms will also likely assist the State Government to reach its infill housing targets.
“While it’s on the way up, Perth’s annual urban infill rate remains below the 47 per cent target,” says Mr Edlinger.
“It seems clear that, if rolled out, these changes would play a part in helping reach that goal.”
The Timeline
The draft changes are anticipated to be released for public consultation later this year.
If the reforms are given the green light, they’re expected to be implemented from mid-2027.
Keen to plan ahead to make the most of these potential changes?
Get in touch with the EPS team today.
