Housing supply across Australia’s is getting a policy shake-up. State governments are introducing new and more creative legislation to unlock more homes.
Property investors should understand what is changing and why.
Victoria: the Single Home Code is already live and designed to speed up housing approvals
Victoria moved first and fastest. The Victorian Government implemented its Single Home Code on 8 September 2025, streamlining approval processes for new homes on blocks of land smaller than 300 square metres.
The code allows new single homes and small secondary dwellings on lots under 300 square metres to be approved without a full planning assessment, provided they meet specific design standards covering setbacks, tree canopy, solar access and street amenity. Critically, there are no VCAT appeals or costly delays for applications that meet the standards.
The Single Home Code builds on the Townhouse and Low-Rise Code introduced earlier in 2025 and is part of Victoria’s broader housing reform agenda under its Housing Statement: The Decade Ahead 2024-2034. A Medium-Rise Code is also expected to follow.
Western Australia: subdivision changes to unlock 50,000 Perth properties
Western Australia is proposing changes to its design code that will reduce the minimum block size required for subdivision from 900 square metres to 700 square metres. The state says this will allow more than 50,000 properties across Perth to be redeveloped into smaller lots.
The changes are expected to come into effect from mid-2027. For Perth, already one of Australia’s fastest-growing cities by population, unlocking that volume of potential new housing sites is significant.
New South Wales: one authority to speed up project approvals
The New South Wales Government introduced initiatives in March 2026 to reduce red tape and speed up the construction of homes. The centrepiece is the introduction of one single authority to oversee project approvals, replacing a fragmented system that had been slowing housing delivery for years.
The intent is to cut approval timelines and remove bureaucratic bottlenecks that have historically added cost and time to new housing projects in New South Wales.
Tasmania: Modular Housing Finance Guarantee to unlock new home construction
Tasmania is introducing the Modular Housing Finance Guarantee to help boost the construction of modular homes. The Tasmanian Government will partner with banks to unlock finance for modular homes during the construction phase, a stage where traditional lending models have historically fallen short.
The government believes this will accelerate housing supply, lower upfront costs and improve access for first-home buyers. Modular construction has been gaining traction globally as a faster and more cost-efficient alternative to traditional build methods.
Queensland: the Land Activation Program to release government land
The Queensland Government has introduced its Land Activation Program, which aims to unlock and release government-owned land to private developers. Government land that has been sitting unused or underutilised can be a significant source of new housing supply, and Queensland’s program is designed to move that land into active development faster.
What state housing supply laws mean for property investors in Australia
Policy changes like these take time to translate into new homes on the ground. But the direction is clear. State governments across Australia are recognising that housing supply needs to increase, and they are changing the rules to make it easier.
For property investors, this matters for two reasons. First, more housing supply over time means more options for buyers and renters – which affects the dynamics of specific markets. Second, some of these changes, particularly Victoria’s streamlined approvals and Western Australia’s subdivision changes, create new opportunities for investors to consider property types and locations that were previously harder to develop.
Understanding where supply is being unlocked, and where it is still constrained, is one of the most important things a long-term investor can understand about any market.
We help everyday Australian families cut through the noise and understand the property investment landscape clearly, so they can make informed decisions based on their own circumstances.
Send us a message if you would like to talk through how housing supply changes factor into a long-term property investment strategy for your family.
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