The proposed changes to Western Australia's residential design code seek to update the lot size required for subdivision from 900 sq/m to 700 sq/m.
This could permit more than 50,000 properties across the Perth metropolitan area to be redeveloped into smaller lots, WA Planning and Lands Minister John Carey says.
"The changes we are proposing are among the most significant reforms ... since they were brought in three decades ago," he said on Thursday.
The reforms would also cut red tape so that simpler residential projects, such as single houses, renovations, patios and carports, no longer need planning approval.
Other changes under consideration include removing minimum parking requirements for apartments and granny flats, greater choice of permissible housing style, and boosting the number of storeys allowed in some areas.
The proposed reforms will be reviewed by expert groups, with draft changes expected to be released for public consultation later in 2026 and implementation from mid-2027.
Reforms to slash red tape and boost housing supply are being rolled out across the country.
Tasmania is embracing modular homes, with legislation to guarantee construction loans while homes are being built off-site set to be introduced to parliament.
NSW made changes aimed at peeling back red tape and speeding up the construction of homes in late 2025, with one authority to oversee project approvals.
Victoria implemented a Single Home Code in September to streamline approval processes for new homes on blocks of land smaller than 300 square meters.Â
It followed similar changes in approvals of low-rise apartments and townhouses for the state earlier in 2025.