Understand Victoria zoning

Hi all,

I'm a newbie in property investment. I came across different zone names but found it pretty hard to find information to differentiate them. Basically I'm confused between NRZ (neighbour residential zone), GRZ (General residential zone) and RGZ (Residential growth zone).

From my understanding all of them allow subdivision and RGZ allows building multi-storey units so on the same land area RGZ allows more units then GRZ does. However I'm not really sure what's the difference between NRZ and the other 2.

Can some experts please shed me some light and/or please correct me if my understanding was wrong.

Thanks

 

the NRZ was previously prior to april 2017 - done to have properties mainly in the east protected from overdevelopment. Some even had single dwelling restrictions like the likes of balwyn, mont albert. however state legislation

The only diff is the character of the neighbourhood which is taken into account if you subdivide and decide you want a 3 storey - they would disallow it. A lot of the them also has vegettation overlays which makes it harder to comply with.

the diff btw RGZ and GRZ is that there is no minimum garden requirment to comply with so for a 600sqm you could technically do 6 as opposed to 3 on GRZ.

 

Thanks @melbournian for your help.

So can I safely assume that buying in a NRZ zone would still make it possible to subdivide (i.e., to 2-3 townhouse with maximum 2 storeys), although it'd be harder to get approval due to other neighbourhood and things like vegetation overlay consideration. I found quite many places in the West also have NRZ like some areas in St. Albans, Albanvale and Kings Park at least so I just wanted to make sure I don't buy a property without development potential

 

you have to check the s32 - there could single covenants - a lot of these in st albans even in the growth zone - would require some effort to get it removed. Or there could be heritage overlays. Make sure you get a solicitor to look through the s32 - could be easements, or other aspects. esp in the NRZ is neighbourhood character aspect which you don't have too much an issue in the growth zone.

 

I see. Thanks a lot!

 

If you are looking at a development site then RGZ is the better option typically. Each zone has a schedule to it, hence why when you look at the zone it might be RGZ3 or GRZ2. The schedules can differ in each council area. It may seem complex but don't let it overwhelm you.
If you are serious on developing then it would be a good idea to find a local draftsman and see if you can spend an hour with him/her. Even if you have to pay them $100 odd for the hour. Have a list of all your questions and simply ask them.
If you are worried about the hourly fee, you should think of it this way: you are spending tens to hundreds of thousands of dollars on a development so why not $100 upfront to gain the knowledge to save you thousands. Good return on investment.

 

@HenryF That's a great idea to find someone to learn from. I don't mind the fee if it's helpful. However I have no idea how to find such a person. Do you have any suggestions?

Thanks

 

Well I use Cordell, but it is a paid product (through work) that lists construction sites.
My suggestion though is for an unbiased view=call builders both volume and small, and ask who they usually work with for the sort of project you are thinking of. In my personal view it is good to try and go with a draftsman who:

1. Does a lot of work in the council area you are interested in (as in knows the council)
2. Does a lot of work on the type of projects you are interested in
3. Can take on more work easily (you would be surprised how many can't/are full)
4. I always like ti if their office is in the council area or near it, but this is optional