The ACT Government has announced proposed changes aimed at allowing more townhouses and other low-rise housing types in Canberra’s suburbs to support housing targets.
Changes to suburban zoning and new design requirements will deliver an increased supply of high quality and sustainable missing middle housing types across the city, the government said.
The amendment to the Territory Plan changes what is allowed to be built in different residential zones in the ACT and removes barriers to developing these different housing types.
Changes include removal of minimum block sizes for additional dwellings in RZ1 areas, removing the 120m2 limit for a secondary dwelling, allowing block subdivisions, as well as permitting townhouses, terraces and low-rise apartments to be built up to two storeys.
“We want to provide more homes for Canberrans where they want to live, and that means making sure we’ve got the right policies in place to deliver more housing choice in Canberra’s existing suburbs,” said Minister for Planning and Sustainable Development Chris Steel.
“This design led approach to changes in our planning system will make sure we can keep what we love about our suburbs, while providing more homes across our city.
“We understand there is strong demand for moderately sized homes with a garden, that will meet the needs of our growing and changing community.
“This reform is about providing more low-rise homes for first home buyers, growing families, and those who want to age in place in the communities that they love.
“Right now Canberra is characterised by single dwelling detached homes in the suburbs and high rise apartments in our town centres, without much housing stock in-between.
“These ‘missing middle’ housing reforms will permit low-rise multi-occupancy homes (2-3+ homes on a block), townhouses, terrace homes and low-rise apartments in existing RZ1 and RZ2 zoned residential areas.
“I encourage everyone to have their say on the new design guide and the draft Major Plan Amendment and take part in shaping well-designed and sustainable housing options for our suburbs that meet the needs for current and future residents.”
Canberrans are invited to have their say on the new ‘missing middle’ housing design guide, which is the foundational document that will be used by industry to guide the types of housing that could be built under the changes.
It will be a requirement for proposed missing middle housing development in RZ1 and RZ2 zones to respond to the design guide.
The Property Council of Australia welcomed the ACT Government’s release of draft reforms to support more diverse ‘missing middle’ housing in Canberra’s suburbs saying they were a strong first step in addressing the city’s housing needs.
Property Council ACT & Capital Region Executive Director Ashlee Berry said the reforms reflected the agenda set by the Property Council’s Unlocking 60,000 Homes report released last year, which called for more medium-density housing, smarter planning reform, and better use of existing land.
“We’ve made consistent calls for urgent zoning reforms to unlock more housing in Canberra – including our pre-election research released in August last year and our recent Budget Submission – so it’s great to see the government now taking action,” Ms Berry said.
“The changes announced today are a strong and significant step forward. More townhouses, duplexes, terraces and low-rise apartments in our existing suburbs will give more Canberrans the housing choice they’ve been crying out for,” she said.
Ms Berry welcomed the release of the draft Missing Middle Housing Design Guide and draft Territory Plan Amendment, saying the government’s design-led approach was critical to achieving community support and high-quality outcomes.
“We agree with the Planning Minister that better design, including on larger, consolidated sites, will deliver better homes, better streetscapes, and better neighbourhoods for current and future residents,” Ms Berry said.
“This is generational planning change that will bring our suburbs into the 21st century and start to unlock delivery of the housing we need, closer to services, shops and public transport.”
Ms Berry said the Property Council would continue to work closely with the government on the next stage of reforms to lift supply and improve affordability.
“There’s more to do – including on costs, taxes and charges – but the reforms announced today set some firm foundations. Without them, nothing changes, so we welcome this announcement and stand ready to work with the government to make sure the reforms deliver real impact for our city.”
The Property Council ACT & Capital Region’s Economic Outlook on 29 May 2025 will feature insights on what’s next for interest rates, inflation, housing, and investment from new CBA Chief Economist Luke Yeaman and Scyne Managing Director Adrian King.