Proposed Perth R-Code Changes: What the Potential 700sqm Subdividing Rule Could Mean for Your Property
If you own an investment property anywhere in Perth’s established suburbs, this is worth five minutes of your time. The Cook Government has just unveiled a major proposal to overhaul the Residential Design Codes. While it is not yet law, this represents the most significant potential shake-up to WA planning rules in 30 years—and understanding these proposed Perth R-Codes changes is vital for evaluating your property’s future value and development potential.
At Joyce Property Investments, we believe in keeping our clients ahead of the curve. Because these amendments are currently in the draft phase, there is no need to panic or rush into decisions. Instead, here is our straightforward, jargon-free breakdown of what these upcoming Perth R-Codes changes could mean for your portfolio if they are officially implemented.
Subdividing R20 Blocks Could Get Much Easier
Right now, if your property is coded R20—the standard low-density suburban zoning across most of Perth—you generally need a minimum of 900sqm of land to subdivide into two lots.
Under the State Government’s proposed reforms, the average lot size requirement would be abolished, dropping the minimum criteria to just 700sqm.
While 200 square metres might not sound like a lot on paper, its real-world impact would be massive. The government estimates that if this amendment passes, it will unlock immediate subdivision potential for over 50,000 properties across Perth’s middle-ring suburbs—areas like Carine, Dianella, Belmont, and Leeming.
What this would mean for you as an investor:
If your current rental property sits on a standard suburban block, these reforms could eventually elevate it from “just a house” into a high-value “development site”. While it won’t happen overnight, it changes the conversation completely when it comes to long-term equity, asset valuation, and your future exit or sales strategy.
The Plan to Slash Red Tape for Renovations and Minor Projects
Beyond major subdivisions, the draft review targets administrative delays that historically slow down simple property upgrades. Under the proposed framework:
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Bypassing Council Approval: Fully compliant, straightforward residential jobs—including single homes, structural renovations, patios, and carports—would bypass local council planning approval entirely in standard cases.
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Halving Approval Timelines: For projects where a development application is still legally required, the target processing timeframe for single-home approvals would be cut in half—from 60 days down to 30 days.
For landlords looking to execute cosmetic or structural renovations to boost rental yields or manufacture equity before selling, this would be a major win, translating to shorter vacancy periods and lower holding costs.
Other Key R-Code Changes Under Consideration
The overarching theme of this proposed reform package is “gentle density,” aiming to curb urban sprawl by utilising existing suburban infrastructure. Several other proposals are currently on the table:
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Eliminating Parking Minimums: The government is considering removing minimum parking requirements for apartments and ancillary dwellings (granny flats). Removing mandatory parking bays makes smaller-scale developments significantly more financially viable, as you can allocate more land to liveable space.
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Building Up in R40 Zones: In medium-density R40 pockets, the maximum baseline height limit is proposed to increase to three storeys, up from the current two-storey limit.
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Redefined High-Density Heights: Baseline height limits are being reassessed for high-density corridors to give developers and property owners more vertical freedom.
The Timeline: This Is a Road Map, Not an Overnight Shift
The most important takeaway for investors right now is that none of this is locked in yet.
The draft R-Code changes are scheduled to go out for public and stakeholder consultation later this year, with official implementation not expected until mid-2027. This gives Perth property owners a strategic runway to prepare and plan, rather than forcing an overnight scramble.
The motivation driving these aggressive proposals is clear: the government’s data shows Perth’s urban infill rate sits at roughly 39%, missing the state’s long-held 47% target. The state needs to inject housing supply into established suburbs, and these changes are the proposed tool to make it happen.
Action Plan: What Should Perth Investors Do Right Now?
Because these rules face a lengthy consultation period where they could be tweaked or altered, we recommend a calculated, strategic approach:
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Know Your Exact Land Size and Zoning: Look up your specific property details via your local council’s mapping portal or through LandGate. If your land sits between 700sqm and 900sqm with an R20 code, your property portfolio is directly in the line of sight for a potential future value upgrade.
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Treat This as a “Watch This Space” Scenario: Do not rush out to sign building or demolition contracts tomorrow. The draft rules will likely face robust feedback from local councils and industry bodies before they are finalized.
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Factor the 2027 Timeline Into Your Strategy: If a property you intended to sell over the next year suddenly gains subdivision potential in 2027, its long-term financial equation shifts. It is well worth discussing these timelines with us to see what potential return you could get.
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Keep an Eye on the Granny Flat Angle: If the removal of parking minimums goes ahead, adding a secondary dwelling to your existing block becomes a friction-free way to secure a second rental stream without the steep cost of a full structural subdivision.
Looking for tailored guidance on your Perth property?
At Joyce Property Investments, we help our clients navigate changing property landscapes with clarity. Contact our property management and investment specialists today to discuss how to prepare your asset portfolio for the future.