ResCode Changes Victoria: Same Site, Very Different Outcome

https://www.youtube.com/watch?v=ogiyesHGf6E

Victoria’s planning framework has shifted. The recent ResCode changes form part of the broader new planning laws in Victoria and are already reshaping how property developers assess sites.

There has been plenty of discussion about what these changes were supposed to achieve. The more important question is this: what have they actually done in practice?

This article walks through a real development site in Sandringham. The comparison is simple. One application was prepared under the old rules. The second was redesigned under the updated ResCode framework.

Same land. Same suburb. Very different outcome.

Why the ResCode Changes Victoria Matter

When the changes rolled out, expectations were high. Property developers hoped for clearer rules and better yields. Many were unsure how much difference the reforms would make.

In this case, the difference was material.

The site is a large corner block in Bayside, approximately 850 square metres. The original design proposed three townhouses. Each dwelling measured roughly 24 to 25 squares. The project targeted the high-end Sandringham market.

The design made sense. The homes were large. The facade was strong. The resale strategy was clear.

However, securing a permit was not easy.

Council requests for information were lengthy. Multiple revisions were required. The process felt unpredictable.

After the ResCode Changes Victoria, the same site was reassessed.

The result was not a minor tweak. It was a fundamental shift in property development feasibility.

Before the Changes: Three Large Townhouses

Under the previous rules, the development strategy focused on three premium homes.

Key features included:

1. Approximately 24 to 25 squares per dwelling
2. Generous first-floor setbacks
3. Larger articulation requirements
4. A facade designed to maximise resale

While the homes were strong, the planning pathway was difficult. The request for further information (RFIs) extended across several pages. Council interpretation influenced the outcome.

Setbacks were based on neighbouring properties. In Bayside, this often meant larger front setbacks, sometimes close to nine metres.

Upstairs layouts were constrained by articulation and bulk rules. Designers needed stepped walls. Efficiency was reduced.

The project was tracking toward approval, but with friction.

Then the new framework came into effect.

After the ResCode Changes Victoria: Four Townhouses

Under the updated rules, the same block supported four dwellings.

Importantly, the size did not materially shrink.

Each townhouse remained approximately 24 squares. Accommodation included four bedrooms, two living areas, and improved upstairs efficiency.

How did this happen?

The most significant change was site coverage.

Previously, site coverage sat at 50 percent. Under the updated framework, allowable coverage increased to approximately 60 to 62 percent.

On this site, that translated to roughly 85 additional square metres of buildable area.

That change alone altered the design strategy.

How Site Coverage and Setbacks Shifted the Numbers

The ResCode Changes Victoria also standardised setbacks across many councils.

Previously, front setbacks in Bayside were based on neighbouring dwellings. The greater setback applied, often up to nine metres.

Under the updated rules, front setbacks reduced to six metres.

On a corner block, that difference was substantial.

By reducing setbacks and increasing coverage, the development team achieved:

• More efficient ground floor layouts
• Larger usable upstairs areas
• Sheer wall construction instead of stepped articulation
• Reduced design friction with council

Upstairs saw the biggest benefit. Designers no longer needed excessive articulation to address bulk. This allowed wall-on-wall construction, improving efficiency and potentially reducing development costs.

The result was simple. Four dwellings of similar size replaced three.

Council Process: Before vs After

The planning experience also shifted.

Under the previous system, RFIs were extensive. Interpretations varied depending on the town planner. Subjective feedback created uncertainty.

After the ResCode Changes Victoria, the process became more checklist driven.

RFIs shortened. Parameters became clearer. Council officers worked within defined rules rather than broad discretion.

While timeframes have not yet dropped dramatically, predictability has improved.

For developers, predictability reduces risk. Reduced risk improves feasibility.

Feasibility Impact: Why the Fourth Dwelling Matters

The most powerful takeaway is financial.

Under the original design:

• Three townhouses at approximately 24 squares
• Premium resale expectations
• High pressure to achieve top market pricing

Under the revised design:

• Four townhouses of similar size
• Comparable accommodation levels
• Broader buyer appeal

In areas like Sandringham, new four-bedroom townhouses can approach premium townhouse sales figures. Adding a fourth dwelling significantly lifts gross realisation.

Build costs increase slightly due to additional kitchens and bathrooms. However, the uplift in revenue outweighs the added cost.

The feasibility improvement is clear.

For this client, the fourth dwelling materially improved the project’s numbers.

Why Corner Sites Benefit Most

Not all sites see equal gains from the ResCode Changes Victoria.

Corner blocks and front-to-back configurations have seen the largest impact.

These sites benefit because:

• Reduced setbacks unlock additional design flexibility
• Increased coverage allows deeper building envelopes
• Upstairs bulk rules are less restrictive

On corner sites, the difference can be dramatic.

Where three dwellings once made sense, four may now be viable.

What Developers Should Do Next

The key lesson is not that every project must be redesigned.

Some projects are too advanced. Others show limited upside.

However, developers should:

1. Reassess corner sites under the new rules
2. Review site coverage assumptions
3. Analyse setback reductions
4. Rerun feasibilities using updated parameters

The ResCode Changes Victoria have created genuine opportunity. They have also made site assessment more consistent across councils.

Understanding the new framework can materially change what is achievable.

Final Thoughts on the ResCode Changes Victoria

Planning reform often creates uncertainty. In this case, it has created opportunity.

On the Sandringham example, three large townhouses became four comparable dwellings on the same land.

Same site. Very different outcome.

For property developers assessing sites in Victoria today, the message is clear.

Revisit your numbers.

Check your coverage.

Reconsider your corner blocks.

The rules have changed. The feasibility has changed with them.

Filled under: All Building Subdividing