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Canberra Residential Zoning RZ1: Second Dwelling Rules

Understand Canberra's recent housing reforms allowing second dwellings on larger RZ1 blocks. Learn how Territory Plan changes affect your property.

By Canberra Policy Desk · Published 4 August 2026

Listen in English · 3 min

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Written by AI from the linked sources and not reviewed by a journalist before publishing. Sources are linked where available. Spotted an error or need a correction? Contact corrections@dailynetwork.news.

Canberra Residential Zoning RZ1: Second Dwelling Rules
Photo by SurfaceWarriors / Flickr (CC BY-SA 2.0)

Recent updates to the Territory Plan have refined the framework for residential development, affecting how residents across the region can adapt their properties. The Territory Plan provides the foundational structure for land use, categorizing areas into distinct zones, including residential, commercial, and industrial sectors. These designations determine the scale and type of construction allowed on individual blocks, directly influencing housing availability and household utility.

Options for Residential Land Use

For residents in RZ1, which is classified as the lowest-density residential zone, recent reforms introduced specific flexibility for larger properties. Blocks exceeding a certain size are now permitted to accommodate a second dwelling, provided the building does not exceed a specified size. While this allows for increased housing utility on a single title, these secondary dwellings cannot be subdivided or unit-titled. This policy shift reflects a focus on increasing capacity within existing low-density neighbourhoods, allowing households to accommodate changing needs without significantly altering the character of the streetscape.

The planning system further differentiates between density levels to support varying community requirements. RZ2 zones are structured to facilitate medium-density development, permitting the construction of townhouses and low-rise apartments. Moving toward higher-intensity areas, RZ3 allows for apartment buildings reaching up to several storeys, specifically when these developments are situated near key transport routes. For the highest density requirements, RZ4 is designated for residential buildings of up to several storeys, prioritized in areas with established, strong access to public transport and essential services.

Regulatory Oversight and Considerations

While the Territory Plan manages the majority of local development, certain areas are subject to additional oversight. Development approvals in designated areas, such as the Parliamentary Zones or the foreshores of Lake Burley Griffin, require explicit authorization from the National Capital Authority. These requirements operate under Commonwealth legislation, ensuring that projects in these specific locations align with broader national planning standards. Residents considering major alterations in these zones must account for this dual-layer approval process, which remains distinct from standard territory-based zoning applications.

As these regulations continue to shape the development landscape, property owners are encouraged to review the current zoning maps to understand the specific opportunities available for their blocks. By aligning individual development goals with the parameters established in the Territory Plan, residents can better navigate the options for property improvement and expansion within the established guidelines.

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