Canberra is a step closer to seeing more townhouses, row houses, duplexes, and low-rise apartments built in its established suburbs, planning minister Chris Steel MLA said, as the ACT Government is finalises its draft ‘Missing Middle’ housing reforms.
A draft major plan amendment to the Territory Plan has finished community consultation and received strong support, Mr Steel said. Once passed, it would help deliver the government’s commitment to 30,000 new homes by 2030.
“Addressing the ‘missing middle’ will ensure that there’s more housing choice, whether you’re a first home buyer, supporting a growing family, or wanting to age in place in the community you love,” Mr Steel said.
“These reforms strike a balance between increasing housing supply and maintaining the unique character of Canberra.”
Key proposed changes include allowing homeowners to subdivide large blocks before construction; strengthened solar access protections for neighbours; clearer dwelling density and design standards; and updated heritage controls and design guidance.
The revised draft plan (DPA-04) will now be referred to the Legislative Assembly Standing Committee on Transport and Planning, which may conduct an inquiry before it is adopted.
The draft Missing Middle Housing Design Guide will also be updated to reflect consultation comments. This will include clearer guidance on subdivision scenarios, landscaping, heritage, infrastructure, and the design of diverse housing types.
The full Consultation Report and revised draft reforms are available on the YourSay Conversations website.
Industry backs reforms — with caveats
Master Builders ACT welcomed the changes as “crucial” to meeting housing targets, but warned that broader policy and cost issues must also be addressed.
CEO Anna Neelagama said the reforms were “an important move in the right direction”, but would only succeed if supported by action on construction costs, red tape, infrastructure and workforce shortages.
“While we welcome the potential positive impacts, we remain concerned about the implications of the excessive Lease Variation Charges, new regulations imposed on property developers and unsolved problems in heritage and tree approvals management,” Ms. Neelagama said.
“If we don’t address these challenges, it will limit homeowners’ ability to build additional homes on their blocks, thereby hindering overall housing supply.”
The ACT is lagging behind on its Housing Accord targets, and needs to build 4,700 extra homes each year to meet them. The MBA urged the Legislative Assembly to expedite approval of the reforms and to invest more in apprenticeships and training to ensure a skilled workforce capable of delivering new housing.
Property Council: “A big win — now focus on delivery”
The Property Council of Australia hailed the reforms as “the most significant modernisation of Canberra’s residential zoning in decades”, saying they reflected many of its members’ recommendations.
ACT & Capital Region Executive Director Ashlee Berry said the reforms offered “a big win for housing choice”, and called for the Assembly to approve them without delay.
“There’s no time to waste and no need for any further deliberation or inquiry,” Ms Berry said. “It offers the chance finally to unlock the potential of thousands of underutilised blocks… Allowing subdivision before construction, clarifying solar protections and recognising diverse block sizes are practical changes that will make it easier for Canberrans to deliver more homes.”
The Property Council argues that zoning reform could deliver more than half the ACT’s infill housing needs to 2060, but believes that zoning reform alone wouldn’t fix the Territory’s housing supply issues. It called for a monitoring framework to track how many homes are approved, started, and completed.
“This must be the start of a new chapter, not the end,” Ms Berry said. “With building approvals at record lows and housing starts down more than 50 per cent in just two years, we need to focus now on delivery.”
ACT Shelter
Corinne Dobson, CEO of housing peak body ACT Shelter, said: “Increasing housing supply through ‘missing middle’ reforms is welcome, but without clear mechanisms to ensure affordability, we risk simply creating more options for those who can already buy in, and not necessarily for those being priced out of the market.
“ACT Shelter supports planning reforms that make it easier to build more diverse housing in established suburbs, but the real measure of success will be whether these changes deliver more affordable homes and inclusive communities, not just more dwellings.
“These reforms must go hand in hand with inclusionary planning measures, social and affordable housing targets, and transparent monitoring to make sure the benefits of redevelopment are shared fairly across our community.”

