Key Insights
- The proposed reforms would change how residential land can be developed, potentially making more properties eligible for subdivision and infill development.
- The changes are intended to increase housing opportunities, but any market impact will depend on uptake, feasibility and broader economic conditions.
- Nothing has changed yet. The reforms are expected to go through consultation before being finalised and introduced.
Western Australia's residential planning framework could soon undergo its most significant review in many years, with proposed changes to the Residential Design Codes (R-Codes) aimed at updating how housing is planned and delivered across the state.
The reforms have been presented as a way to support additional housing supply and simplify parts of the planning system. Industry bodies, including REIWA, have welcomed aspects of the proposal that they believe may help increase housing choice. At the same time, the long-term impact will ultimately depend on how the reforms are implemented, how local governments respond and whether development remains financially viable for property owners and builders.
For homeowners, buyers and investors, the announcement is less about immediate change and more about understanding how planning policy may evolve over the coming years.
More properties could become eligible for redevelopment
One of the most discussed proposals is the removal of the average lot size requirement for land zoned R20 and below.
If adopted, more properties may become eligible for subdivision where they previously did not meet minimum average lot size requirements. The State Government estimates this could affect more than 50,000 metropolitan properties.
However, eligibility does not automatically translate into redevelopment. Factors such as block configuration, servicing, construction costs, finance, local planning requirements and market demand will continue to influence whether projects proceed.
For many owners, the practical implications may be limited unless redevelopment aligns with their long-term plans.
A continued focus on infill housing
The proposed reforms also reinforce Western Australia's long-term planning direction towards greater infill development within established suburbs.
Rather than expanding further into new urban areas, future housing growth is expected to rely increasingly on additional dwellings within existing communities through subdivision, townhouses and medium-density housing.
This approach has the potential to increase housing diversity over time while making greater use of existing infrastructure. Equally, it may prompt ongoing discussions around neighbourhood character, infrastructure capacity and how increased density is managed across different communities.
The pace of any change is also likely to vary significantly between suburbs, depending on local demand and development activity.
Planning processes may become simpler
Another component of the review focuses on streamlining planning approvals for lower-complexity residential projects.
Proposed changes include removing planning approval requirements for some single houses, patios and carports, simplifying parts of the Residential Design Codes and reducing approval timeframes for certain developments.
If implemented effectively, these measures could reduce administrative processes for some applicants. However, planning approvals are only one part of the development process, with construction costs, financing, labour availability and market conditions continuing to influence project feasibility.
What happens next?
Importantly, these reforms remain proposals and will be subject to public consultation before any final decisions are made. If adopted, implementation is anticipated from mid-2027, with any impact on housing supply or redevelopment activity likely to emerge gradually over time.
For homeowners, buyers and investors, the proposed changes offer an indication of how planning policy may evolve rather than a signal that market conditions will change overnight. Whether you're considering subdividing, purchasing a development site or simply wanting to understand how your suburb may evolve, it's worth keeping informed as the consultation process progresses. As every property is different, seeking advice from experienced real estate, planning or development professionals can help you understand how any future changes may apply to your individual circumstances.