Brisbane Approves 120sqm Lots as Housing Rules Overhauled

Brisbane homeowners and developers are facing the city's most significant residential planning shake-up in years, with Brisbane City Council voting overwhelmingly to allow housing lots as small as 120 square metres across key parts of the city — even as property values record a second consecutive monthly decline.

The council passed the sweeping low-to-medium density zone changes 25 votes to one, with the new rules taking effect from 18 September. The affected zones cover roughly 14 per cent of the city, and under the revised framework, the minimum lot size in eligible areas will drop from 260 square metres to just 120. For context, a 185-square-metre block in Petrie Terrace recently went to auction — and it was still 65 square metres larger than the smallest lots the new rules will allow.

Buildings of up to three storeys will generally be permitted, rising to four storeys at locations with strong public transport access or proximity to shopping centres. Some low-density properties within walking distance of a centre will also gain the ability to subdivide into 300-square-metre lots. Council estimates the changes could unlock capacity for around 6,000 additional homes — apartments, duplexes, terraces and townhouses — by 2032.

Councillors from the LNP, Labor and Greens all backed the reforms. The sole dissenting vote came from Independent Councillor Nicole Johnston, who argued the changes would primarily boost developer margins without guaranteeing genuinely affordable housing outcomes. Labor councillors supported the additional supply but warned that infrastructure — public transport, footpaths and parks — would need to scale alongside population growth.

Capacity for homes and actual construction are different things. Whether the 6,000 dwellings ever materialise will hinge on demand, project feasibility and individual planning requirements at each site.

Separately, consultation has opened on a much taller vision for Upper Mount Gravatt. A new precinct plan centred on Westfield Mount Gravatt and the Logan and Mount Gravatt–Capalaba Road corridor is considering buildings ranging from five to 30 storeys, with the tallest towers concentrated close to the shopping centre and major bus routes. Pedestrian connections, arcades and shaded boulevards are also on the table. Unlike the broader lot-size changes, this proposal has not yet been adopted and remains at the consultation stage.

The council also signed off on the final Mount Gravatt Centre precinct plan, which was revised downward in several areas following community feedback — reducing maximum heights from 12 to 10 storeys in parts of the centre, with further cuts along Tenby Street and near existing low-density homes.

The planning changes arrive against a softening property market. According to Cotality's Home Value Index, Brisbane dwelling values fell 0.6 per cent in July, following a revised decline in June — marking two consecutive months of falls with values now sitting 0.7 per cent below their May peak. Anyone hoping affordability has suddenly improved should note the city's median dwelling value remains just above $1.1 million, still 14.8 per cent higher than a year ago. Unit values have climbed 17.1 per cent over the year compared with 14.3 per cent for houses.