Zoning Reforms Boost New Housing Supply: REIWA

REIWA

REIWA welcomes the State Government's announcement of reforms to R-Codes (Residential Design Codes) and planning approvals.

The proposed reforms will abolish the average lot size requirement for land zoned R20 and below, allowing residential property owners on 700sqm blocks to subdivide. This is down from the current requirement of 900sqm.

The reforms also aim to cut unnecessary red tape so more simple residential projects, such as single houses, renovations, patios, and carports, will no longer need planning approval.

REIWA President Suzanne Brown said supply was an ongoing challenge for the WA property market and acknowledged the government's efforts to increase supply and facilitate development.

"Challenges in the creation and delivery of new supply have put significant pressure on the established homes market, both in terms of homes to buy and rent," she said.

"When addressing supply, you can either build out, build up, or look at infill. Perth cannot keep expanding outwards, and there are challenges with building high density.

"Urban infill needs to be part of the solution. REIWA has been calling for greater support for medium density housing in established suburbs for some time, as well as improvements to the planning system to expedite the delivery of new supply. We believe these reforms address some of these issues.

"As an example, I'm aware of a home owner in the Hills who would like to subdivide her 1725sqm block and create two new family sized homes on two 800+sqm blocks. One would be a home for herself and her children, the other would be either to rent or sell to support her when she retires. Her block has two street frontages and is zoned R10.

"Under planning regulations in her local government area, she is about 25sqm short of being able to do this. Instead, she can only create a smaller block and build a one-bedroom, one-bathroom dwelling.

"These reforms may help her and others in her area, and boost housing supply in that suburb."

Ms Brown said the reforms should lead to more housing for first home buyers, downsizers and tenants.

"There is strong demand for housing in established areas closer to the city," she said.

"Allowing people to subdivide if they wish will provide more opportunities for first home buyers, who do not always want to live on Perth's fringe.

"It should also benefit downsizers, many of whom tell us they want to stay in the area they know and love but want smaller houses on smaller blocks.

"The reforms may also lead to the creation of more rental properties in established suburbs, as new builds are eligible for negative gearing."

Ms Brown warned urban infill needed to be done well.

"We know there are community concerns about this reform. For example, there are concerns about increased traffic on local streets as well as the impact on access to main transport routes," she said.

"There are also issues with parking, and we have our concerns about the removal of minimum parking requirements for apartments and granny flats.

"With the change to allow three storeys, up from two storeys in areas zoned R40, there are worries about neighbouring homes being overlooked. There needs to be a focus on good design that takes things like this into consideration.

"And with more people in close proximity to each other, as well as increased traffic, you need to consider features like double glazing to reduce the impact of noise on residents."

For those against the reforms, Ms Brown said change was not something that would happen overnight.

"Firstly, the reforms are not expected to come into effect until this time next year. Secondly, it takes time to build a home. As a result, we may not see an outcome from these reforms for several years," she said.

"And finally, not every person with a 700sqm block will rush out and immediately subdivide it. Not everyone with a 700sqm block will want to subdivide. Minister Carey has said he expects it will take 10 to 15 years for home owners to take advantage of the changes."

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