Buying a Block Under 300sqm? Here's What You Need to Know

21st April 2025

Finance & Budgeting Pre-Construction

Thinking of buying a block under 300sqm? This article breaks down what you need to know about lot types, setbacks, orientation, and wall-on-boundary rules under Victoria’s Small Lot Housing Code. Avoid costly mistakes and build with confidence.

Buying a Block Under 300sqm? Here's What You Need to Know

As land becomes more scarce and affordability tightens, more home buyers are turning to smaller blocks under 300 square metres. But while these smaller lots offer a pathway to home ownership, they come with unique rules and design considerations that can trip up even the most seasoned buyers.

In this episode of the Home Building Hub podcast, Colin and Darren break down the key things you need to know before you purchase a sub-300sqm block. Based on real experience and real mistakes they've seen time and time again, this episode is your essential guide to small lot housing in Victoria.

What is a Small Lot in Victoria?

In Victoria, blocks under 300sqm are subject to the Small Lot Housing Code (SLHC). This code allows these compact blocks to avoid lengthy planning approvals if certain design conditions are met. However, these rules only apply to designated areas and must be clearly noted in your Plan of Subdivision as either Type A or Type B (or recently introduced Type C which is under 100sqm, but not covered in this article)

The Three Essentials You Need to Understand

1. Lot Types and Setbacks

• Type A: Allows a 3m front setback (garage still requires 5m).

• Type B: Allows a 1.5m front setback, offering greater design flexibility.

• Corner Lots: May allow 1m - 1.5m side setbacks depending on type.

• Plan of Subdivision will show whether your lot is Type A or B — always ask your land agent or builder to confirm this.

2. Orientation and Private Open Space

• You need 24sqm of private open space (POS), with at least 6sqm of unshaded space receiving direct sunlight.

• East and West-facing lots are easiest for compliance.

• North-facing lots often require a longer backyard due to shadows cast by the house.

• Ceiling heights can impact shadowing: higher ceilings = longer shadows.

3. Wall on Boundary Limits

• A lot of small lot homes are built boundary-to-boundary.

• However, if your neighbour's lot is over 300sqm, your wall-on-boundary length is restricted.

• Example: If your lot is 294sqm and your neighbour’s is 350sqm, the wall-on-boundary allowance drops to around 14.5m.

Other Design Considerations

• Garage Door Setback: Usually calculated to the door, not the brickwork — can give you up to 230mm extra.

• Downpipes and Drainage: Builders may need to run plumbing under the house.

• Wall Articulation: Walls over 10m may require an articulation "kick-in" for compliance.

What Can Go Wrong?

• Failing to check orientation can make your chosen design non-compliant.

• Buying a lot without confirming wall-on-boundary limits may mean redesigning the house.

• Some consultants may not be familiar with SLHC rules — always ask the right questions and verify their experience.

Key Takeaways

• Always check your Plan of Subdivision for lot type (Type A or B).

• Orientation affects what you can build — ideally go for east or west facing.

• Know your neighbours’ lot sizes if building walls on boundaries.

• Ask your consultant if they’ve worked with SLHC before — not all are up to speed.

• Buy with confidence by understanding the code and consulting experienced professionals.

Listen to the Full Episode

🎧 Click here to listen or watch the full episode

Glossary of Terms

• Small Lot Housing Code (SLHC): A Victorian building code that applies to lots under 300sqm.

• Setback: The distance your house must be from the boundary.

• Private Open Space (POS): Outdoor space on your block for your use — part of building compliance.

• Wall-on-Boundary: When part of your home is built directly on the property boundary.

• Unshaded Space: Area that must receive direct sunlight to comply with planning rules.

Frequently Asked Questions

Q: Can I build a two-storey home on a block under 300sqm? A: Yes, but ceiling height and orientation must be carefully managed to comply with unshaded space rules.

Q: What happens if my neighbour’s lot is larger than mine? A: Your allowable wall-on-boundary length may be reduced. Always ask your builder to calculate this.