WA's biggest planning shake-up in 30 years could unlock 50,000 new housing sites

Western Australia’s suburban housing landscape is set for its biggest transformation in more than three decades, with the State Government unveiling sweeping reforms to the Residential Design Codes (R-Codes) that could unlock more than 50,000 additional subdivision opportunities across metropolitan Perth.

The proposed reforms, announced on Thursday (2 July), represent the most significant overhaul of the R-Codes since they were introduced in the 1990s and form a central plank of the Cook Government’s strategy to address the state’s housing shortage.

The centrepiece of the package is the removal of the long-standing average lot size requirement for land zoned R20 and below.

The higher the R-code number, the higher the housing density permitted.

Currently, many R20 properties require an average lot size of 450 square metres, meaning a minimum 900 square metre site is generally needed before subdivision is possible. Under the proposed changes, owners of 700 square metre blocks meeting minimum lot size requirements would be able to subdivide, dramatically increasing redevelopment opportunities throughout Perth’s established suburbs.

Planning and Lands Minister John Carey said the reforms would create substantially more housing opportunities within existing urban areas.

“The changes we are proposing are among the most significant reforms to the R-Codes since they were brought in three decades ago and build on previous changes to the medium density codes and our broader nation-leading planning reforms,” Mr Carey said.

“The proposed changes enable tens of thousands of existing properties to be subdivided that couldn’t previously, providing more opportunities for housing in existing suburbs.”

The Government estimates more than 50,000 existing residential properties could become eligible for subdivision if the reforms proceed following public consultation.

One prominent Perth property expert and media commentator said home and land values could rise by significant sums.

“The real big winners are the ones on the corner where your house is towards the front and you can subdivide the back yard and sell it off,” Gavin Hegney said.

“You’re probably talking there of gains from 10 to 20 per cent, and if it’s your principal residence, congratulations!”

Cutting planning red tape

Beyond subdivision reform, the review seeks to simplify residential development approvals by removing planning approval requirements for many straightforward projects, including single homes, renovations, patios and carports.

Approval timeframes for detached homes are also targeted to halve from 60 days to 30 days.

The review also proposes simplifying the structure of the R-Codes themselves, reducing duplication and making the planning framework easier for homeowners, developers and local governments to navigate.

Mr Carey said the existing codes had blown out from 80 to more than 300 pages and had become an ungainly burden.

Other measures under consideration include removing minimum parking requirements for apartments and granny flats, permitting three-storey development in R40 areas instead of the current two-storey limit, and revising building height controls across medium and higher-density precincts.

Mr Carey said the reforms were intended to remove unnecessary barriers while encouraging a broader mix of housing.

“These changes will make it easier for a range of simple residential projects, like single homes, extensions and patios, to get off the ground by ensuring they aren’t caught up in unnecessary red tape.

“This package is also about enabling more medium and high-density housing, including by changing car parking requirements and allowing greater building height in these areas.”

Reform receives mixed reception

Shadow Housing Minister Sandra Brewer said the opposition Liberal Party was broadly supportive of the reforms but added that it was only one part of the solution.

“While changes to the Residential Design Codes is a good step, West Australians won’t judge this Government on another announcement, they’ll judge it on whether more homes are actually built,” Ms Brewer said.

“After almost a decade in Government, families are still facing soaring rents, record house prices and a chronic shortage of homes.

“The Government has failed to deliver promised apartments around METRONET stations and activity centres, while also failing to bring sufficient new greenfield land to market.”

The Urban Development Institute of Australia (UDIA WA) has broadly welcomed the proposed reforms, describing them as an important step towards increasing housing supply, affordability and housing diversity.

UDIA WA Chief Executive Tanya Steinbeck on Thursday told API Magazine that many of the proposed changes reflected issues the development industry had consistently raised throughout the review process.

“At a time when Western Australia continues to face significant housing pressures, reforms that help deliver more homes, faster, should be welcomed,” Ms Steinbeck said.

“We have consistently advocated for a planning framework that is simpler, faster and provides greater certainty for both industry and the community.

“Importantly, the package focuses on removing unnecessary barriers and complexity that can delay projects, increase costs and ultimately limit housing supply.”

The announcement coincided with the release of the Governments latest Perth and Peel @ 3.5 Million health check, which showed urban infill accounted for 39 per cent of new housing in 2024, an improvement on 34 per cent the previous year but still below the long-term target of 47 per cent.

Ms Steinbeck said increasing infill housing remained essential if Perth was to accommodate future population growth without continued urban expansion.

“The latest Perth and Peel @ 3.5 Million health check demonstrates that Perth remains below its long-term infill housing target, despite recent improvement,” she said.

“Removing barriers to delivering well-designed precinct and smaller scale infill development is a necessary part of the supply solution.”

She added that planning reform alone would not solve the housing shortage.

“A whole-of-government approach to increasing housing supply remains critical in order to fully realise the benefits of planning reform, including ensuring that community and essential services infrastructure keep pace with accommodating an increased population within the current urban footprint.”

MBAWA CEO Matt Moran says these reforms will help boost land availability, affordability and housing supply.

“These reforms are targeted directly at increasing housing supply and cutting red tape in the planning approvals process,” said Mr Moran.

“The proposed reforms also allow more simple residential projects to get off the ground including renovations, patios and carports, without needing planning approval.

“This is a great measure that gives homeowners and the building industry confidence that basic projects won’t drown in bureaucracy.”

But not everyone was enamoured with the new policy announcement.

The Greens (WA) Planning spokesperson Dr Brad Pettitt MLC has long advocated for R-Code reforms in Western Australia to prioritise climate-conscious, medium-density housing.

He told API Magazine that the latest changes as “lazy reform” that focused on low-level infill and failed to address infrastructure shortfalls or tree canopy destruction.

“This kind of infill results in the worst kind of density; density that is too low to create walkable transit orientated neighbourhoods but takes up too much space to preserve tree canopy.

“What you end up with is suburbs that were once leafy becoming treeless, hot and car-dependent, making them even less liveable than they are today. 

“Perth already has the lowest canopy cover of any Australian capital city and it is continuing to decline at a rapid rate.

“What we desperately need is for the government to plan properly and incentivise density in the right locations, such as around existing train stations and along transit corridors.

“This means investing in the infrastructure to make these locations a good opportunity for investment or, better yet, direct government investment in high-density housing projects that include social and affordable options.

“Subdivision of smaller blocks can be done well, but sadly that’s not what this proposal from the Cook Labor government is offering.”

Consultation still to come

While the announcement outlines the broad direction of the reforms, the detailed draft amendments have yet to be released.

The Government expects to publish the proposed changes for public consultation later this year before implementation, currently scheduled for mid-2027.

For property owners, developers and investors, the consultation process will determine exactly how the new subdivision provisions, density controls and planning exemptions operate in practice.

If implemented substantially as proposed, the reforms would reshape development opportunities across Perth’s middle suburbs, creating significantly greater scope for subdivision, townhouse development and gentle urban infill while streamlining approvals for thousands of smaller residential projects.