Could Your Property Be Worth More? WA’s Biggest Planning Reform in Decades

Could Your Property Be Worth More? WA’s Biggest Planning Reform in Decades

The Western Australian Government has announced proposed changes to the Residential Design Codes, commonly known as the R-Codes, that could significantly increase the development potential of thousands of residential properties across Perth.

If adopted following consultation, these reforms would be among the most significant changes to residential planning in Western Australia in more than 30 years. The Government has stated that the proposed changes could allow more than 50,000 existing residential properties across the Perth metropolitan area to be subdivided, helping unlock more infill housing opportunities. (Mirage News⁠)

For many property owners, this could mean increased land value, stronger buyer demand and new subdivision opportunities that may not have existed under the current rules.

What is changing?

One of the most important proposed changes is the removal of the average site area requirement for land coded R20 and below.

In simple terms, under the current R20 rules, many properties need to meet both a minimum and an average site area requirement. This has meant that a 700sqm block may have had the theoretical size to create two 350sqm lots, but could still fail because it did not meet the 900sqm average site area requirement.

The proposed reform would remove that average site area requirement for R20 and below, potentially allowing some 700sqm R20 blocks to be subdivided, subject to all other planning, design, servicing and approval requirements. (Mirage News⁠)

That distinction is important. Land size matters, but it is not the only factor. Frontage, sewer location, easements, setbacks, existing dwellings, vehicle access, drainage, tree retention, local planning policies and the specific requirements of each council will still play a major role in whether a property can actually be subdivided.

Why does this matter?

Development potential is one of the biggest drivers of land value.

When a property can accommodate an additional dwelling, it may become more attractive to developers, builders, investors, land bankers and buyers looking for future upside. That can change the way a property is valued.

A standard residential buyer may look at a home and assess it based on bedrooms, bathrooms, condition and comparable sales. A developer may look at the same property and assess it based on land size, zoning, subdivision potential, build cost, end value and feasibility. That difference can be significant.

Many owners are unaware that their property may be affected by these proposed changes. Some properties that were previously dismissed as “not subdividable” may need to be reassessed if the reforms proceed.

What does this mean for the City of Belmont?

The City of Belmont contains many established residential properties that may be impacted by these reforms, particularly in suburbs such as Belmont, Cloverdale, Kewdale, Redcliffe, Rivervale and Ascot.

These suburbs include a large number of older homes on traditional blocks, many of which sit in areas where R20 zoning is common.

While every property is different, this is exactly the type of reform that property owners should understand before making major decisions.

For some owners, it may not change anything. For others, it may create additional value, additional buyer demand or a new pathway to subdivision that was not previously available.

Thinking of selling?

Knowing your property’s development potential before going to market can make a significant difference. A standard market appraisal tells you what your property may be worth today as a home.

A development assessment can help identify whether there is additional value in the land that may not be obvious at first glance. That matters because if a property has genuine subdivision or development potential, it should be marketed correctly from the beginning.

The right strategy can help attract the right buyers, create stronger competition and ensure the development potential is properly recognised in the final result.

At Ray White Urban Springs, we are already assessing properties in light of these proposed planning reforms and helping local owners understand what these changes could mean for their property.

If you own property in Belmont, Cloverdale, Kewdale, Redcliffe, Rivervale, Ascot or the surrounding suburbs, now is an ideal time to review your landholding and understand whether these proposed R-Code changes may affect your property’s value.

If you would like a complimentary review of your property’s development potential, we would be happy to help.

Andrew Huggins is Principal of Ray White Urban Springs, the top real estate agent in the City of Belmont for over 20 years. He writes about Perth property trends, WA real estate insights, Australian housing supply and demand, and long-term investment strategy.