If you’re looking to capitalise on the profit potential of your land by subdividing, it won’t be long before you come across the term ‘R-Code’. R-Code stands for ‘Residential Design Code’ and essentially controls the quantity and type of residence/s that can be built on a certain home site.
We’ve asked our our Senior Development Consultant Adrian Johnson, what is an R-Code, what you need to know about understanding R-Codes and what the recent changes mean for you.
Lot size is just the beginning
In addition to controlling the quantity and type of residences that can be built on a block, R-Codes also determine many other important aspects such as garage and alfresco design requirements and privacy considerations.
R-Codes are distinguished by different numbers
There are a number of different R-Codes - R20, R30 and R40 are some of the more common ones.
The numbers simply refer to how many residences you could fit on a 10,000m2 piece of land.
You can use this information to figure out the minimum block size per residence of each R-Code or work with your building partner to help maximise the potential on your lot.
They help determine your block’s development potential
R-Codes are one reason why blocks of equal size can have vastly different value and appeal.
Savvy investors will likely lean towards a block with the most potential for sub-division, meaning an R-Code that allows a greater number of dwellings to be built on it.
Most Perth blocks are R20
Council zoning in Perth is constantly evolving, causing R-Codes to change over time.
As a general rule, land closer to the Perth CBD is zoned R30 or R40, allowing for a greater density of dwellings compared to Perth’s outer suburbs (which are most commonly zoned R20).
It’s important to check the code before you commit to a piece of land to ensure it can achieve what you are planning.
You don’t need to be an R-Code expert to subdivide
Understanding R-Codes isn’t essential if you have land that you are looking to subdivide.
Your best bet is to find an experienced subdivision specialist who understands the necessary council zoning in Perth.
Experienced subdivision specialists will be able to guide you through the subdivision process, taking care of everything from planning and council approvals to building residences that deliver the ultimate return on investment.
Put your builder to the test and make them find the best solution for you so that you can enjoy the best returns possible.
As the most experienced development team in WA, our Senior Development Consultants build this experience into each and every development.
What do the recent changes to R-Codes mean for me?
A lot of shires and councils are changing and adding policies to the areas that have higher zoning, even though the Western Australian Planning Commission (WAPC) has increased zoning and lot sizes, shires and councils are adding there own rules and policies.
For example, the City of Joondalup has added a tree policy making a standard triplex site of 720sqm now becoming a duplex lot.
A lot of times, clients think they will wait as the zoning will increases and they will be able to get more home but this is not always the case.
What new benefits and opportunities does this present to potential investors?
With the new zoning issued by WAPC, this can potentially increase your yield and the amount of homes you can have on the block, in most cases giving a better return on your investment.
With the tree policy in Joondalup for example, this is not only a positive for the environment, but it also create a nice landscape and outcome for the area.
Perth's most expensive and sought after suburbs are in areas that have a lot of trees and are known for their leafy surrounds, which may be a big attraction to buyers explaining the areas high prices.