WA’s 2027 Rezoning Reform: What the 700sqm Block Change Means for Perth Property Owners
Western Australia is preparing for its biggest planning shake-up in three decades. Under proposed reforms to the state’s Residential Design Codes (R-Codes), the minimum lot size needed to subdivide R20-zoned land is set to drop from 900 square metres to just 700 square metres. Announced by Planning and Lands Minister John Carey, the change could make more than 50,000 existing Perth properties eligible for subdivision that currently cannot be split.
Draft changes are expected to go to public consultation later in 2026, with implementation targeted for mid-2027. For homeowners, investors, developers and anyone tracking the Perth property market, understanding this reform now — before consultation locks in the fine print — is essential.
What Is Actually Changing?
R20 is the most common residential density code across metropolitan Perth, generally applied to standard suburban blocks. Under the current rules, subdividing R20 land typically requires an average lot size of 450 square metres per dwelling, meaning a 900sqm block is usually the practical minimum for a two-lot split. The proposed reform abolishes that average lot size requirement altogether, opening subdivision potential to blocks as small as 700 square metres.
The reform package goes further than block size alone. It also proposes cutting planning approval requirements for simple residential projects such as single houses, renovations, patios and carports, removing minimum parking requirements for apartments, allowing three-storey builds in R40 areas, and redefining baseline building heights in medium and high-density zones.
Local government areas expected to see the greatest impact include Joondalup, Stirling, Wanneroo, Canning and Cockburn — all areas with a high concentration of established R20 housing stock.
Why Is WA Doing This?
The reform sits inside a broader push to lift Perth’s urban infill rate, which has consistently sat below the state’s 47% target (it reached 39% in 2024, up from 34% in 2023). With housing supply failing to keep pace with demand, the Cook Labor Government has committed a record $10.8 billion in housing measures since 2021, and the R-Codes overhaul is designed to unlock “gentle density” — smaller-scale subdivision, townhouses and infill housing — within suburbs that already have established infrastructure, rather than pushing development to Perth’s fringe.
How Will This Affect Perth Land Prices?
The rezoning is widely expected to lift the value of eligible blocks, particularly established R20 properties in the 700–900sqm range that were previously “locked out” of subdivision. Industry body UDIA WA has described the change as one that could boost block values by opening up new development and sale options — homeowners could subdivide and sell off part of their land, or demolish and redevelop the full block, rather than being limited to a single dwelling.
For buyers and investors, this means:
- Underused R20 blocks become more valuable. A 700–900sqm block with subdivision potential is inherently worth more than one that must remain a single dwelling, so expect a re-pricing of eligible land as the reform moves toward implementation.
- Increased supply may ease price growth over time. More subdividable land generally means more housing stock entering the market over the medium term, which can help moderate the pace of price growth across Perth, even as individual eligible blocks rise in value.
- The effect will be gradual, not immediate. Minister Carey has indicated it could take 10 to 15 years for homeowners to actually act on the new subdivision rights, so a price shift is likely to unfold over years rather than overnight.
- Middle-ring suburbs are the ones to watch. Areas with high concentrations of older R20 housing on larger blocks — think established suburbs rather than newer, already-subdivided estates — are best placed to see value uplift first.
Perth home values have already been growing faster than other Australian capitals, though growth has been slowing. Against that backdrop, the R-Codes reform adds a structural factor that developers, valuers and buyers will need to factor into land assessments from 2026 onward, well ahead of the mid-2027 implementation date.
What Should Property Owners Do Now?
Owners of R20 blocks between 700 and 900 square metres should start by checking their block size and current zoning, since eligibility hinges on both. It’s also worth watching the public consultation period later in 2026, as the final rules — including any density controls or planning exemptions — will be settled during that process, not before. Anyone considering a subdivision, sale, or development play should speak with a licensed town planner or property professional to understand how the changes will apply to their specific block once the details are confirmed.
Frequently Asked Questions
What is the new minimum block size for subdivision in WA?
Under the proposed reform, R20-zoned blocks of 700 square metres or more would become eligible for subdivision, down from the current effective requirement of around 900 square metres.
When will the WA rezoning reforms take effect?
Public consultation on the draft changes is expected later in 2026, with implementation targeted for mid-2027, pending the outcome of that consultation.
How many Perth properties could be affected?
The WA Government estimates more than 50,000 existing residential properties across metropolitan Perth could become eligible for subdivision.
Will this make Perth land more expensive or cheaper?
Eligible blocks are likely to see an uplift in value due to new subdivision potential, while increased supply over the medium term may help moderate broader price growth across Perth.
Do I need planning approval to subdivide under the new rules?
Subdivision will still require approval, but the reforms aim to reduce approval requirements for simple residential projects like single houses, renovations, patios and carports.
