The WA Government has announced what is being described as the biggest reform to the Residential Design Codes in more than 30 years. If adopted, these changes could unlock subdivision opportunities for thousands of Perth homeowners and change the way established suburbs develop over the next decade.
After more than 25 years in the residential building industry, I believe this is one of the most significant planning changes I've seen. It has the potential to create opportunities for homeowners, investors and families, but only if people understand what the changes actually mean and how to take advantage of them.
At New Home Building Brokers, we've been helping Perth homeowners with custom homes, subdivisions and multi unit developments since 2009. Because we're independent, we've been able to work across hundreds of different sites, councils and builders, giving us a broad understanding of what works and what doesn't.
What is changing?
One of the biggest proposed changes is reducing the minimum lot size for subdivision in many R20 and lower density areas.
Instead of requiring around 900m² in many situations, properties from approximately 700m² may become eligible for subdivision, subject to the final legislation, zoning and site specific requirements.
The reforms also propose increasing development opportunities in some R40 areas by allowing buildings up to three storeys, reducing parking requirements for some developments and creating faster planning pathways for many residential projects.
The aim is simple. Increase housing supply while making better use of existing suburbs and infrastructure.
What does this mean for Perth homeowners?
For many homeowners, this could be the first time their property has genuine development potential.
A block that previously had limited options may soon allow an additional lot, a duplex, grouped dwellings or a future redevelopment opportunity.
For others, it may simply increase the value of their land because developers and buyers place a premium on properties with subdivision potential.
Industry commentators have suggested these reforms could affect around 50,000 properties across Perth, making this one of the biggest planning changes in a generation.
Subdivision is about much more than land size
One of the biggest misconceptions I see is people believing subdivision is simply about owning a large enough block.
In reality, every site is different.
The shape of the block, existing home location, slope, sewer connections, crossover positions, easements, trees, retaining walls and local planning requirements all influence what can be achieved.
Some properties are ideal for retaining the existing home and creating a rear lot.
Others are better suited to demolition and redevelopment.
Corner blocks often provide greater flexibility because of additional street frontage and easier vehicle access.
The right strategy can make a substantial difference to the final financial outcome.
Experience matters before you spend money
One of the most common mistakes homeowners make is rushing into plans before understanding the site's full potential.
I've seen people spend thousands of dollars on designs that don't maximise the value of their land or suit the long term development potential.
Before starting any subdivision project, homeowners should understand:
Is retaining the existing home the best option?
Would demolition create a better financial return?
What are the likely site works and servicing costs?
What type of development best suits the zoning?
What will buyers actually want in that suburb?
Which builders have genuine subdivision experience?
These are questions that should be answered before investing significant money into plans.
Why independent advice makes a difference
This is where NHBB has always been different.
We're not a builder trying to sell one building solution.
We're not a developer trying to buy your property.
We're an independent building advisory business that works for the homeowner.
Our role is to help clients understand every available option before they commit.
That may involve reviewing the site's development potential, coordinating consultants, assisting with design strategy, comparing builders, reviewing costs and helping clients choose the solution that best suits their goals.
Sometimes the best advice is to proceed immediately.
Sometimes it's better to wait.
Sometimes it's deciding not to subdivide at all.
Independent advice means decisions are made in the client's best interests.
The next decade will create enormous opportunities
Perth continues to grow, while the availability of well located land continues to shrink.
Planning reforms like these are designed to increase housing supply within existing suburbs rather than continually expanding further from the city.
I believe we'll see more duplex developments, townhouse projects, retain and build behind developments and small scale multi unit projects than ever before.
Homeowners who understand their property's development potential early will be in the strongest position to make informed decisions as these changes continue to roll out.
Why homeowners choose NHBB
New Home Building Brokers has been operating independently since 2009 and has helped hundreds of Perth homeowners navigate custom homes, knockdown rebuilds, subdivisions and residential developments.
Our experience includes working with local councils, town planners, surveyors, designers and many of Perth's leading builders.
As both a WA and National HIA Housing Judge, I also have the opportunity to see some of Australia's best residential projects, construction standards and design innovation. That experience provides valuable insight when helping clients make important building and development decisions.
Every property is different.
Every family has different goals.
Our role is to help clients understand all of their options before making one of the biggest financial decisions they'll ever make.
Final thoughts
These proposed R Code reforms have the potential to reshape Perth's established suburbs over the coming years.
For many homeowners, the opportunity isn't simply about subdivision.
It's about understanding the true potential of one of their biggest assets.
If you own a property of around 700m² or larger, particularly in an established suburb, now is the right time to understand what these planning changes could mean for you.
Good development starts with good advice.
That's something we've believed since opening our doors in 2009.
Frequently Asked Questions
Can I now subdivide a 700m² block in Perth?
The proposed reforms may allow subdivision from around 700m² in many R20 and lower density areas, however zoning, frontage, site conditions and planning requirements will still apply.
Will these changes increase property values?
Properties with subdivision or development potential generally attract stronger buyer interest, although every suburb and site is different.
Can I keep my existing home and subdivide?
Many retain and build behind projects are possible, but the existing home's location and the site's layout will determine whether this is the best approach.
Should I speak to a builder first?
Understanding your site's development potential before committing to a builder or plans can often save significant time and money.
About the Author
Tristan Kirkham | Managing Director
Tristan Kirkham is the Managing Director of New Home Building Brokers, Perth's longest operating independent building broker. With more than 25 years' experience in residential construction and development, Tristan has helped hundreds of homeowners with custom homes, knockdown rebuilds, subdivisions and multi unit developments across Western Australia. He is also a WA and National HIA Housing Judge, providing independent expertise across residential design, construction quality and industry best practice.