On 1 July 2026 the ACT Government made the biggest change to Canberra's suburban zoning in decades. Major Plan Amendment 04, the missing middle reform, now lets owners build duplexes, townhouses, terraces and small apartments on ordinary RZ1 and RZ2 blocks. If you own a home in Canberra, here are the five things worth knowing.
1. The 800m² rule for a second home is gone
Before July, an RZ1 block needed at least 800m² for a second dwelling, with a maximum of two. Now there is no minimum block size and no fixed cap. What fits is decided by site coverage, tree canopy, open space, setbacks and design rules.
2. RZ1 blocks can now be subdivided
Each new block must have a lawfully built home on it, or be at least 350m². Unit titling is allowed on standard blocks of 600m² or more once the homes are built.
3. RZ2 allows three storeys
RZ2, now called Suburban Density, sits near shops and transport. Multi-unit housing there can go to three storeys, with no fixed limit on the number of homes.
4. Granny flats are easier
There is no longer a minimum block size for a secondary residence. It is still limited to 90m², one per block, and stays on the same title as the house.
5. Development costs came down, for a limited time
Eligible projects get a 50% cut to the Lease Variation Charge. Development approval must come before 30 June 2029, and the homes must be finished by 31 December 2030.
What it means if you are selling
A good RZ1 block can now attract families, builders and small developers at the same time. That competition can lift your result. It will not add value to every block, so it pays to get a clear read on yours before you sell.
Read the full guide: RZ1 and RZ2 zoning in Canberra: what you can build now. It has before and after tables, subdivision rules, costs and a full FAQ.
Book an appraisal and we will look at your home through the new rules.
General information only, not planning or legal advice. Check your Crown lease and get professional advice before you build or subdivide.
