ACT Government Approves Dual Occupancy Zoning for Suburban Blocks to Boost Housing Supply

The ACT Legislative Assembly has passed a significant planning reform that will permit dual occupancy dwellings on thousands of suburban blocks currently zoned for single homes. The vote, which amends the Territory Plan, clears the way for property owners in RZ1 zones to build a second residence, such as a duplex or a detached unit, on their land, subject to block size and design requirements.

This decision follows months of consultation and debate, driven by the government's stated goal of addressing Canberra's persistent housing shortage and affordability pressures. The policy is a key component of the government's infill development strategy, which seeks to accommodate a growing population by increasing the number of homes within the city's established footprint rather than relying solely on new suburbs in areas like Gungahlin and the Molonglo Valley.

What the Changes Mean for Canberra Neighbourhoods

For residents in many of Canberra’s established suburbs, this policy will visibly alter the streetscape over time. In neighbourhoods across Belconnen, Tuggeranong, and Woden Valley, a block that has held a single family home for decades could now accommodate two smaller, separate dwellings. Proponents argue this will create more housing diversity, providing options for downsizers who want to stay in their community and for younger families seeking to enter the market.

The approved motion specifies that the new rules will apply to RZ1 blocks larger than a certain threshold, though the final minimum size is subject to further regulatory drafting. The Environment, Planning and Sustainable Development Directorate will now develop detailed provisions covering aspects like building height, setbacks from boundaries, and the amount of accessible green space that must be retained. For local homeowners, the change presents a new option to develop their property, but it also raises community questions about the potential impact on local traffic, parking, and demand for services at neighbourhood schools and shops.

Implementation and Next Steps

According to government planning documents, the primary objective is to increase housing supply in a way that makes more efficient use of existing public infrastructure, including roads, public transport routes, and utilities. By encouraging density in established areas, planners aim to slow urban sprawl and its associated costs. The ACT's long-term planning strategy has consistently identified the need for more housing choices beyond traditional detached houses and high-rise apartments.

The policy will not take effect overnight. The legislative change triggers a formal variation to the Territory Plan, a process that includes public notification and the finalisation of technical specifications and design guides. The government expects that the first development applications lodged under the new dual occupancy rules could be processed in early 2028, with construction on newly approved projects likely to begin later that year. Further information sessions for residents and industry professionals are planned for the coming months to detail the specific requirements for subdivision and development.