The Biggest Mistake Buyers Could Make with WA’s Proposed R-Code Reforms
The biggest mistake buyers could make after WA’s proposed R-Code reforms is assuming every 700sqm R20 block will be right for subdivision.
The second biggest mistake is ignoring blocks that are.
The WA Government has announced proposed changes to the Residential Design Codes, including changes that could allow many R20-zoned properties to be subdivided from around 700sqm instead of the current position where around 900sqm is normally needed.
What this could mean for buyers
For buyers looking for subdivision opportunities in Perth, the proposed reforms could change what is worth looking at. If the reforms proceed, many Perth properties zoned R20 could move from needing around 900sqm to create two lots, to potentially being able to subdivide from around 700sqm.
That could create thousands of new subdivision opportunities across established Perth suburbs.
But the opportunity will not simply be finding a block zoned R20 that meets the proposed new size threshold. It will be knowing which blocks have the right configuration, access, services and planning profile to turn subdivision potential into a genuinely worthwhile opportunity.
Why the right block will matter more than ever
That is where the real difference will be.
A 700sqm R20 block may look exciting at first glance. But block size is only the starting point. The shape of the land, slope, sewer position, easements, access and existing improvements can all affect whether the subdivision works well in practice.
An irregular block may technically have enough land area, but still create awkward lots that are harder to build on or less appealing to future buyers. A sloping site may add retaining, earthworks or drainage costs. Sewer lines and easements can also affect where a new home can be positioned and how efficiently the site can be developed.
Retain and build: where many buyers get caught
For retain-and-build opportunities, the position of the existing home becomes one of the most important factors.
It is not just a question of whether the block is big enough. The home needs to sit in a way that allows the rear or side land to become a practical new lot, while still leaving the retained home functional and appealing, and meeting the planning requirements.
That is why a well-configured 710sqm block may be more attractive for development than an awkward 850sqm block.
More than one way to create value
The reforms could also make site selection more important in higher-density areas. The Government has flagged other possible changes, including allowing three storeys in R40 areas, removing minimum parking requirements for apartments and granny flats, and reducing approvals for simple residential projects.
For investors, this matters in another way too. In a changing tax environment, the ability to create new housing, rather than simply hold an existing established property, could become an increasingly important part of strategy. That does not mean every development site is a good investment. It does mean the right site, bought well and assessed properly, may offer more ways to create value.
What buyers should do now
The draft changes are expected to be released for public consultation later this year, with implementation proposed from mid-2027.
For buyers looking now, the message is not to rush at any large R20 block. It is to understand which properties may become more valuable under the proposed rules, and which ones may still be poor development candidates.
Because these changes are still proposals, buyers also need to be careful about relying on them too heavily before the final rules are confirmed. If you buy now, there is a risk that the finished reforms may be different from what has been announced, or that a particular property may not deliver the outcome you expected.
That makes careful site selection even more important. The best opportunities are likely to be the properties that make sense both under today’s rules and under the proposed direction of reform.
Choosing a site that stacks up
Property Wizards has helped hundreds of investors, developers and home buyers find properties with development potential across Perth. That includes identifying suitable retain-and-build properties, triplex sites and higher-density opportunities, then helping clients assess the opportunities and take the steps to develop.
It also means helping clients avoid properties that may look promising initially, but fail to stack up after proper due diligence because the subdivision is not viable, the development outcome is not attractive, or the costs and constraints make the opportunity less compelling.
The proposed reforms may open the door to more subdivision opportunities, but the real advantage will come from knowing which doors are worth opening.
If you are considering buying a property with subdivision or development potential, speak with our team before you buy, book a Strategy Call with our expert team.
Or, fill in our Getting Started Form to let us know what you would like to achieve.
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Established in 2004, Property Wizards works with local, interstate and overseas home and investment buyers seeking to buy property in the greater Perth metropolitan area. Property Wizards takes away the stress of buying property and saves you time and money. Regardless of market conditions, our research, knowledge, and access to silent sales means we find and negotiate properties with potential to outperform the market in capital growth and rental returns. Importantly, we provide home buyers and property investors with the same level of representation that property sellers have benefited from for years.
