The Hidden Value in Your Block and Why Buyers Are Suddenly Chasing It

If you own a home in Perth, it is easy to look at the backyard and see only the lawn. Many buyers now look at the same space and see something else, which is room to build. 

There can be value in your block that most owners never count, and at the moment there is genuine demand for it.

What buyers are looking for now

Building new in an established suburb has become one of the most sought after moves in Perth. Buyers want a modern home designed around how they live today, but they are reluctant to give up the established schools, shops, transport and family networks that make a suburb feel like home. 

So they tend to look for the hardest thing to find, which is titled land in an area that is already connected. In the inner south, that kind of land is relatively scarce, and where supply is tight it can support stronger buyer demand and, often, firmer prices.

Why some buyers look past an established home

It helps to see the decision from a buyer’s point of view. An older home can come with compromises, such as a floorplan built for another era, a renovation bill, tired finishes, poorer energy efficiency, and little room for a study or second living space. That kind of layout does not always suit the way families live today. 

So when a buyer weighs up your established home, they may also be weighing up the option of building what they want instead, if only they could find the land. Where your block could offer that, it holds something those buyers often find hard to source.

What this can mean for what you already own

This is where things become interesting for owners. A large, underused backyard, a block wide enough to subdivide, or room for a second dwelling can all add to what a buyer is prepared to pay. Development potential is only ever one contributor among many, alongside location, land size, build quality, nearby amenities and overall demand, but it is a contributor that many owners overlook.

For context, Perth’s established housing market remains strong. REIWA reported a median house sale price of approximately $938,000 at the end of June 2026, close to record levels, with growth easing after a very strong 2025 and early 2026. A growing number of Perth suburbs now record median house values above $1 million, and established inner-south areas such as Melville, Mount Pleasant and Applecross have long sat among the higher end of the market. Land in these areas is finite, and that limited supply is part of what underpins their values.

How the planning rules are changing

Two changes are moving in owners’ favour. The first is already in place: since the 2024 reforms, it has become easier to add a compliant granny flat of up to 70 square metres on many blocks, subject to your zoning and R-code.

The second is bigger. In July 2026 the State Government proposed the largest R-Codes overhaul in about three decades. The headline change targets R20, the most common suburban zoning in Perth, removing the rule that generally requires around 900 square metres to subdivide and dropping the threshold to roughly 700. On the government’s own estimate, more than 50,000 existing Perth properties could become eligible, opening options that many owners’ blocks did not have before. The package also removes minimum parking for granny flats and apartments, allows three storeys in R40 areas, and cuts approval times for single homes from 60 days to 30.

These are proposals, not law. Public consultation is expected later in 2026, with any changes anticipated from mid-2027, so the detail may still shift. Even so, the direction is favourable for owners, and some blocks once dismissed as too small to subdivide may be worth another look.

You do not always need to build

Capturing this value does not always mean building. Often, simply understanding and presenting your block’s potential can lift what a buyer is prepared to offer. That might take the form of a costed granny flat plan, indicative subdivision numbers, or a clear picture of the development upside under the proposed R-Codes. 

You are giving buyers a considered view of what the block could become, which many will factor into their decision.

Being realistic about the numbers

Not every block stacks up, and we would not suggest otherwise. A granny flat on a block where buyers would rather keep the yard tends to add little. A subdivision that costs more than it returns is a risk rather than an opportunity. And a reform that has not yet passed remains a possibility, not a certainty.

Potential only counts when it matches what buyers in your street actually want and the numbers genuinely work. Any subdivision will still depend on your zoning, your R-code, servicing and the usual approvals. Knowing which potential is real and which is not is the part that takes experience, and it is where our development background is most useful. We can look at your block honestly and give you a considered view on whether the upside is worth pursuing or better left alone.

Where to start

If you are weighing up a move, it is worth understanding what your block could realistically do, and what that might be worth in today’s market, before you go to market. 

It is a conversation we are always glad to have, and a free appraisal is a straightforward way to find out what your block could really be worth.