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Townhouses, duplexes, terraces and walk-up apartments could be allowed in RZ1 zones following comments made by the ACT government this week, with the remarks receiving a nod from the Property Council of Australia.
ACT Planning Minister, Chris Steel, has flagged changes to the state’s zoning laws this week, signalling approval for the construction of medium-density housing in previously restricted areas.
The comments come as the Housing Industry Association warned that building approvals for detached homes hit a 55-year low in the ACT.
“This year further major zoning reforms will also be developed to allow larger-scale medium-density housing in certain well-located areas close to services, shops and transport,” Steel said to the ACT’s Legislative Assembly.
“Like European cities, this is intended to support human-scale housing that will promote access to public transport, renewal of shopping centres and the public spaces around them.”
The comments were welcomed by the Property Council ACT and capital region executive director, Ashlee Berry, noting that the changes will unlock supply.
“We’ve made consistent calls for urgent zoning reforms to unlock missing middle housing in Canberra, and it’s fantastic to see the government now taking action,” Berry said.
“Our research, released in August 2024, showed that thoughtful rezoning could deliver nearly 60,000 new homes – helping to meet demand, make better use of existing infrastructure, and provide more housing choice for Canberrans at every stage of life.
“The Planning Minister’s comments about plans to allow larger-scale medium-density housing in well-located areas close to services, shops and transport are a major step towards making the vision we outlined a reality,” she said.
Berry expressed concern that supply has not been able to keep pace with population growth in the nation’s capital, calling for reform to improve affordability.
“Canberra’s population is growing rapidly, and our current planning system simply isn’t keeping up,” Berry said.
“By unlocking more housing with these reforms, more people will have the opportunity to live where they want without being pushed to the fringes.
“While full details are yet to be announced, we look forward to working closely with the government to realise the full potential of these reforms, and to get the planning settings right to deliver real outcomes for housing supply and affordability,” Berry said.
The flagged changes come as the ACT government seeks to introduce the Planning (Territory Priority Project) Amendment Bill 2025, which will remove appeal rights for public housing.
The bill is expected to automatically classify public housing as a Territory Priority Project, meaning that residents will no longer be able to appeal to the ACT Civil and Administrative Tribunal.
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