The Western Australia government has released its position statement on lots less than 100 sqm—and the Real Estate Institute of Western Australia (REIWA) welcomed the initiative, noting that micro-lots will be beneficial to the market.

The position statement provides guidance on location and development considerations for proposed subdivision and building design for lots less than 100sqm; and will apply in select areas where a structure plan, activity centre plan or local development plan is required. It does not apply to existing residential lots.

Prepared by the Western Australian Planning Commission, the statement also supports the consistent and innovative application of small-lot subdivision and development in new residential areas and transit precincts.

Compact housing that is built on smaller blocks is well established on the east coast housing market.

REIWA said that the state is ready to boost its housing diversity with the rise of interest in the same of properties in Western Australia.

“An example of these micro-lots is already in place at Ellenbrook’s Verge Microlot Precinct with 11 two-storey townhouses, 10 which are on 80 square metre lots, which has showcased how good design can make even small lots seem bright, spacious and liveable,” REIWA said.

The industry group said that micro-lots will be a positive introduction to the market and will receive strong demand from a range of buyers, from first-home owners to seniors right-sizing. Lots under 100 square metres could make a significant contribution to the delivery of affordable housing options for all West Aussies.

In addition, the government will look to add location criteria for potential micro-lots, which is likely to assist in increasing density around centres. This is essential to capitalise on existing infrastructure and amenities while utilising zones likely not suitable for apartment development.