New ResCode Planning Rules Victoria 2025 – What Developers Need to Know

The New ResCode Planning Controls in Victoria – Are They Developer Friendly?

There’s been a lot of talk — and confusion — around the new ResCode planning controls introduced in Victoria. Promoted as a reform to streamline housing development, these rules were supposed to speed up approvals and provide clarity. But do they actually work in practice for developers, designers, and landowners?

Here’s a closer look from someone who deals with these regulations daily — and how they’re impacting real projects on the ground.

The Short Answer? It’s a Mixed Bag

While the reforms aim to cut red tape and simplify design outcomes, ResCode still contains many limitations, especially for infill development and dual occupancy projects. In some areas, it has made development less viable, particularly on larger lots where tree canopy and garden area requirements eat into buildable space.

The Garden Area Requirement: Still a Deal Breaker

One of the biggest constraints remains the Minimum Garden Area (MGA) requirement.

• For lots over 650sqm, 35% of the site must be set aside as garden area — not to be confused with permeability.

• The garden area is not just soft landscaping — it must be uncovered, open, and unencumbered by buildings, driveways, decks, or services.

• This limits your design flexibility significantly — especially on larger blocks, where you might assume you can fit 3–4 units.

Real-world example:In a recent project, we lost one entire unit due to the MGA. That unit would have made up the cream of the developer's profit margin — effectively reducing ROI and making the project borderline feasible.

There’s an argument that this requirement could be merged with the permeability rule, allowing a more performance-based approach that still supports vegetation without compromising yield.

Front Setback Flexibility: A Small Win

One positive change is the reduction of front setbacks in some areas:

• From 9 metres down to 6 metres (depending on the street context)

• This small shift allows better site utilisation, especially in dual occupancy scenarios where creating rear access is critical

• However, these gains can easily be cancelled out by other rules like the Garden Area and tree canopy mandates

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Secluded Private Open Space: A More Realistic Standard

Another welcome improvement is the standardisation of Secluded Private Open Space (SPOS):

• Previously, SPOS could be as high as 80 sqm per dwelling depending on Council

• The new standard of 25 sqm per dwelling is more realistic and aligned with modern lifestyles

• This change frees up more buildable space without compromising liveability

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A Shift Away from Subjective Neighbourhood Character?

Historically, ResCode leaned heavily on subjective interpretations of "neighbourhood character" — vague rules like “matching the street” or “responding to the rhythm of the built form.” This led to unpredictable outcomes between Councils and even individual planners.

The new framework:

• Moves towards empirical criteria, such as:

  • Measurable setbacks

  • Defined open space locations

  • Quantifiable visual impact

• There is more room for contemporary architectural styles, rather than forcing mimicry of outdated housing stock

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However, some Councils are pushing back, preferring their older interpretations of character. One local Council has already publicly opposed the new system — and may challenge its use through VCAT. That means more delays, more legal costs, and more uncertainty.

Tree Canopy Rules: Bigger Lots, Bigger Problems

If your lot is over 1,000sqm, things get even trickier:

• You’ll need to plant trees that provide a 20% canopy cover over the site

• For a 1,001sqm lot, that’s 200sqm of tree canopy

• This impacts site layout, driveways, shadowing, and even stormwater design

• Plus, trees take time to mature — and Councils will want to see canopy projections, not just species selection

This can result in losing another unit or major design flexibility, especially for townhouse developments.

New Room Dimensions & Cross Ventilation: More Red Tape?

The updated ResCode also introduces:

• Minimum room sizes (e.g. bedroom widths, living area dimensions)

• Requirements for natural ventilation and crossflow between opposite walls

These changes are good from a design quality perspective, but they also:

• Increase design complexity

• Add documentation requirements for your planning and building permits

• Further reduce the efficiency of small or irregular blocks

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So, Is the New ResCode Developer Friendly?

Here’s a quick breakdown:

Element	Impact on Developers
Garden Area Requirement	🚫 Negative – reduces yield and flexibility
Tree Canopy Rules	🚫 Negative – especially on big blocks
SPOS Standard (25 sqm)	✅ Positive – more realistic
Front Setback Reduction	✅ Positive – small win
Room Sizes and Ventilation Rules	⚖️ Neutral – improves design, adds cost
Neighbourhood Character Reform	⚖️ Mixed – better in theory, patchy in use

Our Verdict: It’s Not There Yet — But Shows Potential

ResCode reforms are a step in the right direction, but for now, they fall short of truly supporting medium-density infill development across Victoria.

The conflict between State policy and local Council preferences remains unresolved in many areas. Until there's clearer alignment and simplification, most developers will continue facing:

• Inconsistent interpretations

• Delays in approvals

• Unexpected project compromises

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Thinking of Developing or Subdividing Under the New ResCode?

Get advice before you submit. Swarup Dutta, our Principal Planner, has secured over 250+ planning permits across Victoria — including under the new ResCode rules.

We offer a free high-level assessment of your development site. We’ll tell you:

• If your site qualifies under the new ResCode

• What constraints apply to your block

• Whether the project is financially feasible

• How many units are realistically achievable

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Avoid costly mistakes and wasted design fees.Contact Swarup today for a complimentary, expert opinion on your land.

Who is Swarup?

Swarup is the owner of this website and this article. He has managed over 250++ planning permits across Victoria for dual occupancy and town house subdivision projects.

These were for mum and dad investors and more experienced developers.

He is Property Subdivision specialist, planner and developer of his own properties. He walks the talk.

Swarup- your hand holding specialist

What are his qualifications?

Swarup is a Registered Planner, Member of the Planning Institute of Australia, Victorian Planning and Environmental Law Association and Associate of the Royal Australian Institute of Architects. His practice uses the latest Building Information Modelling software. Swarup has a degree in Architecture, has authored articles for a major building publication and taught at a University in Melbourne.

How does his practice work?

Collaboration is the key to success. Working with the Council , submitting drawings and reports which Council understands; while at the same time trying to make the most of the development land so the owner also wins. Its really a win win win method.

Swarup understand planning requirements, engineering ; he designs and draws all the plans, elevations, shadow diagrams etc as required by Council for the Town Planning Application. He also writes the Planning Report.

Why use us?

We work with you from start to finish. We don't give up. Swarup took 2 years to rezone one of his properties from a No build Zone to a residential Zone. The value of the land increased many-fold. In another project he presented to the full Council and won his dual occupancy subdivision permit much to the annoyance of the wealthy neighbours with Victorian mansions; not to say the Planning Officer who recommended refusal.

When does he take on your project ?

We don't believe in taking on your project to make money. Swarup will tell you what you need to hear and not what you want to hear! If its not possible we tell you upfront- not half way down after taking your hard earned money! That is a big difference.

What should you do next?

 Swarup will review the development land on a high level basis at no cost to you. He will point out what actions are required to move to the next step. He will review the Section 32 and check for any problems on title etc.

Contact Swarup any day- and make a start.