Housing industry welcomes move as critical to meeting the territory's 30,000-home target
The Australian Capital Territory (ACT) government has approved Major Plan Amendment 04 to the Territory Plan, enabling so-called "missing middle" housing in Canberra's established residential zones.
Planning minister Chris Steel approved the amendment, which allows multi-occupancy dwellings, townhouses, terraces, and low-rise apartments to be built in Suburban (RZ1) and Suburban Core (RZ2) zones. These zones account for the large majority of residential blocks across the ACT.
Under the amended rules, RZ1 blocks retain a two-storey height limit (plus attic), while RZ2 blocks — typically located near shopping centres — may accommodate buildings of up to three storeys plus attic. Subdivision and block consolidation will be permitted in both zones.
"For too long, the planning system has effectively prevented building anything in-between high-rise apartments or a freestanding house on most blocks in Canberra," Steel said. "These reforms address a major gap in Canberra's housing stock, and will enable more homes, and housing choice for Canberrans."
Today’s decision by the Planning Minister to approve the Missing Middle Housing Reforms marks a turning point for Canberra. pic.twitter.com/pISOtEx0Nz
— Greater Canberra (@GreaterCanberra) May 22, 2026
The reforms are a central component of the government's target of delivering 30,000 new homes by 2030. The amendment follows a Legislative Assembly Standing Committee inquiry into the plan, after which the government made further adjustments to address zone policy outcomes, streetscape character, and parking impacts on the public domain. Supporting technical documents, including the Residential Zones Technical Specification and the Missing Middle Housing Design Guide, were also updated.
The approved amendment will now be tabled in the Legislative Assembly, where members have five sitting days in which to move a notice of motion to reject it.
Industry response
The Property Council of Australia and the Housing Industry Association (HIA) both welcomed the move.
Property Council ACT and Capital Region executive director Ashlee Berry (pictured right) noted the announcement followed industry calls for the government to act promptly after the standing committee's recommendations earlier in May.
"It's encouraging to see the government moving with urgency to drive the outcomes intended in these plans," said Berry, who noted that the decision was built on research commissioned by the Property Council two years ago, conducted by Purdon, which assessed the capacity of Canberra's suburbs to absorb additional low-rise dwellings without altering neighbourhood character.
"That work helped shift the conversation from whether missing middle housing was possible, to how it should be delivered, and it set the tone for the reforms now being approved," she said.
For HIA executive director for ACT and Southern NSW Geordan Murray (pictured right), the reforms were essential to achieving the territory's broader housing objectives, but cautioned that planning changes alone would be insufficient.
"The government should be commended for continuing to progress reforms that are central to the Territory's long-term housing strategy," he said. "These reforms are essential if the ACT is serious about increasing housing supply and delivering greater housing choice within established suburbs."
Murray warned that retaining Lease Variation Charges would undermine the intent of the reforms by discouraging infill development at a time when construction costs and financing pressures are already constraining housing delivery.
"You cannot encourage redevelopment with one hand and penalise it with the other," he said.
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