Homeowners across Perth and Peel could soon have a new way to unlock the value of their properties without having to sell the family home, under proposed Western Australian planning reforms.
The Cook Government is investigating a Retain and Gain subdivision pathway that would allow eligible owners to retain their existing house while creating a separate lot that could potentially be sold.
For real estate agents, the proposal could create a new category of listings in established suburbs, with homeowners able to sell part of their land rather than the entire property.
It could also change conversations with vendors who have considered downsizing or selling to access the equity tied up in their homes.
Instead of moving, some owners could potentially sell their backyard, retain their house and remain in the neighbourhood.
A new option for homeowners and agents
The proposed changes would apply to eligible properties zoned R10 to R25 in the Perth and Peel regions, where larger residential blocks may have sufficient land to accommodate another dwelling.
Under the proposed pathway, a property could be divided into a maximum of two lots, with the newly created lot required to measure at least 300 square metres.
The existing dwelling would need to remain, while the subdivision would still be subject to relevant planning, design and servicing requirements.
For agents, the potential opportunity extends beyond selling vacant land.
The changes could influence how larger residential properties are appraised, how vendors assess their options and how buyers view the development potential of established homes.
A homeowner who previously needed to sell their entire property to realise its land value could instead have another option, provided their block meets the necessary criteria and subdivision approval is granted.
Planning and Lands Minister John Carey said the reforms were intended to make better use of existing residential land.
“Our Retain and Gain subdivision reform is about making it easier for Western Australians to create an additional home on their property without having to knock down the family home.
“By making it easier for people to retain their home and create an additional lot at the rear, we can support gentle infill and increase housing choice for downsizers and first home buyers in the suburbs people already know and love.”
What it could mean for property values
For homeowners, the financial appeal is straightforward: a subdivision could provide an opportunity to realise some of the value of their land without having to relocate.
For agents, it could introduce new listing opportunities among owners who are not currently considering selling their homes.
It may also create additional vacant land listings in established suburbs, where buyers looking to build can face limited options.
However, the value of a newly created lot would depend on factors including its size, location, access, development potential and local buyer demand.
The impact on the value of the retained home would also need to be considered, particularly where subdivision reduces its land area or changes its layout.
That means agents would need to assess the potential sale price of the new lot alongside the likely value of the existing home after subdivision, rather than assuming the process would automatically deliver a financial benefit.
Mr Carey said existing planning restrictions could prevent subdivision even where properties had room for additional housing.
“Many properties have the capacity to accommodate another home, but existing planning rules can prevent sensible subdivision outcomes even when the original house is being retained.”
The changes are not yet approved
The Retain and Gain proposal forms part of the WA Government’s broader review of the Residential Design Codes, or R-Codes, which regulate residential development.
The wider reform program is intended to make it easier to deliver additional housing in established communities, including through changes to subdivision requirements.
The government has indicated its broader R-Codes reforms could enable more than 70,000 additional lots across Western Australia, although that figure is not specific to the Retain and Gain proposal.
Importantly, the new subdivision pathway remains under investigation.
Not every property zoned R10 to R25 would necessarily qualify, and owners would still need to meet relevant planning and infrastructure requirements before creating and selling a separate lot.
The proposal is open for public consultation until 26 February 2027.
For agents, the potential changes could provide another reason to reconnect with owners of larger blocks, particularly those who want to access equity but have no immediate plans to move.
If introduced, the reforms could give those homeowners a new choice: sell the backyard, rather than the home.
Further information is available through the WA Government’s R-Codes review.