Can I sell a newly created block without constructing a dwelling on it?
Yes, you can sell a newly created block without constructing a dwelling on it in the ACT, but there are conditions.
Under the ACT planning rules, a block subdivision allows a residential block (RZ1–RZ5) to be subdivided without first building the new dwelling/s. This means you can create a new vacant residential block and sell it. However, the subdivision approval must show that a compliant dwelling could be built on each new block.
If the newly created block remains undeveloped, the new Crown lease will include development covenants requiring the construction of a dwelling within a specified timeframe. In addition, Minister’s consent may be required before transferring (selling) the Crown lease if the dwelling has not been constructed.
Reference:
ACT Government – Advisory Note 19: Block Subdivision versus Unit Title Subdivision in Residential Zones – Block Subdivision vs Unit Title Subdivision (Residential Zones)
Short Answer
Yes — you can sell the vacant newly created block, but the buyer will generally take it subject to the development obligations attached to the Crown lease, and approval/consent requirements may apply before transfer
Detailed Explanation
Yes, a newly created residential block in the ACT may generally be sold without a dwelling being constructed, provided it has been created through an approved block subdivision and complies with applicable planning requirements.
A block subdivision allows residential land (RZ1–RZ5) to be divided into separate blocks before construction of dwellings. However, the subdivision approval must demonstrate that each new block is capable of supporting a compliant dwelling under the relevant planning controls.
Where a vacant block is sold, the Crown lease may contain development covenants requiring the construction of a dwelling within a specified timeframe. The purchaser will take the land subject to these obligations.
If the dwelling has not been constructed, approval or consent from the relevant authority may be required before the Crown lease can be transferred. Therefore, while the sale of a newly created vacant block is permitted, it remains subject to the conditions of the Crown lease and any applicable transfer requirements.
No minimum block size does not remove the need for planning assessment.
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