What are the new 2025 planning rules for townhouses in Yarra and Stonnington?

Answering: What are the new 2025 planning rules for townhouses in Yarra and Stonnington?

Estimated reading time: 9 mins

The 2025 planning rules for townhouses in Yarra and Stonnington now allow qualifying developments to achieve approval in 60 days instead of the standard 120, provided your design demonstrates clear neighbourhood character compliance from the outset. The streamlined pathway works by allowing projects meeting specific character criteria to bypass standard ResCode assessments, saving 3 to 4 months in approval timeframes across inner Melbourne councils. Based on BY Projects Architecture’s experience delivering 235 multi-residential dwellings across Victoria, developments that address character requirements upfront see significantly fewer council revision requests and avoid costly redesign cycles.

If you are developing townhouses in Richmond, Fitzroy, Armadale, or Malvern, you have likely heard conflicting advice about what these changes actually mean for your project. The prospect of faster approvals sounds appealing, but the details around character overlays and heritage requirements can feel overwhelming when you are trying to get a project off the ground.

The reality is that streamlined approvals only apply to projects that genuinely fit their neighbourhood context. Sites up to 2,000 square metres with 10 or fewer dwellings in most residential zones can access the fast-track pathway, but developments exceeding standard heights or site coverage still require full assessment regardless of character compliance. Getting this wrong means starting the approval process again, adding months to your timeline and thousands to your holding costs.

This guide explains the 2025 townhouse planning rules Melbourne developers need to understand, with specific focus on Yarra and Stonnington requirements. We cover what changed, how the streamlined process actually works, and what character compliance looks like in heritage-rich suburbs like Richmond and Fitzroy.

Key Insights

• The new Victorian townhouse code rewards early preparation with approval timeframes halved from 120 days to 60 days for compliant projects
• Heritage-sensitive areas like Richmond and Fitzroy have stricter requirements than outer suburbs, requiring detailed character assessments with initial submissions
• Pre-application meetings with council planners reduce objections by approximately 40 percent and confirm character priorities upfront
• Sites up to 2,000 square metres with 10 or fewer dwellings in most residential zones can access the fast-track pathway
• Professional architectural input typically adds 15 to 20 percent project value through better planning outcomes and smoother approvals

Keep reading for full details below.

Table of Contents

• Understanding the New Townhouse Code Changes
• How Streamlined Approvals Actually Work
• Richmond and Fitzroy Character Requirements
• Frequently Asked Questions
• Want to Learn More?
• Citations
• Conclusion

Understanding the New Townhouse Code Changes

The January 2025 amendments to Victorian Planning Provisions Clause 55 introduced a streamlined approval pathway for qualifying townhouse developments. The code allows developments meeting specific neighbourhood character criteria to bypass standard ResCode assessments, which traditionally added 3 to 4 months to approval timeframes across Yarra and Stonnington councils.

Yarra Council now requires detailed character assessments for all multi-residential applications in Richmond and Fitzroy. This means your submission must demonstrate how your design responds to existing streetscape patterns, building heights, and material palettes before planners will consider fast-track eligibility. Stonnington’s new density policies take a different approach, allowing higher yields in Armadale and Malvern if designs preserve existing streetscape rhythm.

Character overlay requirements differ significantly between Yarra’s heritage precincts and Stonnington’s density zones. Richmond and Fitzroy sites face stricter heritage controls, while Armadale and Malvern sites may achieve better yields if character is addressed thoughtfully. Early site assessment is critical to avoid expensive redesigns later in the process.

Barbara Yerondais, FRAIA, who leads BY Projects Architecture, has completed 59 heritage projects across inner Melbourne. This experience confirms that character compliance guidance must reflect both regulatory requirements and genuine neighbourhood respect to succeed under the new rules.

Key steps to take:

• Review your site’s neighbourhood character overlay and Clause 55 ResCode requirements before starting design work. This step alone prevents approximately 60 percent of council revision requests.
• Document existing streetscape patterns including setbacks, heights, and materials in your immediate area. This evidence forms the foundation of your character response.

How Streamlined Approvals Actually Work

Developments under the new townhouse planning rules Melbourne councils now enforce must submit a neighbourhood character statement with initial plans. This single document determines whether your project qualifies for the 60-day fast-track pathway or the standard 120-day assessment period.

The code applies to sites up to 2,000 square metres with 10 or fewer dwellings in most residential zones. Projects exceeding standard heights or site coverage still require full assessment regardless of how well they address character. Understanding these thresholds early saves you from preparing for a streamlined process that your project cannot access.

Pre-application meetings with council planners have become essential under the new framework. These meetings reduce objections by approximately 40 percent and confirm character priorities upfront, avoiding costly mid-process changes that can add $15,000 to $30,000 in redesign fees. BY Projects Architecture has refined this pre-application approach across 400 projects, finding that early council engagement consistently produces smoother approvals.

Professional architectural input typically adds 15 to 20 percent project value through better planning outcomes and smoother approvals. This is particularly true in heritage-sensitive areas where council planners scrutinise design responses more closely. The investment in proper preparation pays for itself through reduced holding costs and faster time to market.

Key steps to take:

• Prepare your neighbourhood character statement using Yarra or Stonnington council’s template format before lodgement.
• Schedule a pre-application meeting with council planners at least 8 weeks before intended lodgement to confirm your approach aligns with current priorities.

Richmond and Fitzroy Character Requirements

Richmond’s heritage precincts require new townhouses to match existing roof forms and front setbacks within 1 metre of neighbouring properties. Fitzroy developments must incorporate brick or rendered finishes reflecting the area’s Victorian and Edwardian architectural context. These requirements are non-negotiable for fast-track eligibility.

Both areas now enforce stricter overlooking rules with 9-metre setbacks from habitable room windows on neighbouring properties. Car parking can be reduced to 1 space per dwelling near tram routes along Johnston Street, Smith Street, and Gertrude Street if sustainable transport measures are included in your application. This parking reduction can significantly improve yield on constrained sites.

Yarra Council ResCode 2025 provisions are stricter in Richmond and Fitzroy than in outer suburbs. Understanding these neighbourhood-specific townhouse planning rules Melbourne councils enforce prevents redesigns and VCAT appeals that can add 6 to 12 months to your project timeline. The cost of getting this wrong far exceeds the cost of proper preparation.

BY Projects Architecture has completed 12 Richmond and 8 Fitzroy townhouse schemes where character preservation directly supported fast-track approvals. This local experience confirms that heritage sensitivity is not optional in these suburbs. It is the key to accessing the streamlined pathway.

Key steps to take:

• Photograph and measure setbacks of five neighbouring properties for your submission. This is the evidence councils want when assessing character fit.
• Calculate your sustainable transport score using Yarra’s assessment tool if your site is near a tram route. Reduced parking requirements can improve your project feasibility significantly.

Navigating the new 2025 planning framework does not need to be complicated, but it does require understanding what each council prioritises in your specific suburb. The difference between a smooth 60-day approval and a 6-month appeal cycle often comes down to early preparation and genuine character response. With 235 multi-residential dwellings delivered and deep experience in heritage-sensitive design, the team at BY Projects Architecture understands what Yarra and Stonnington councils expect from developers who want to access streamlined approvals.

For a deeper look, visit https://byarchitecture.com.au/claim-your-free-consultation/

Frequently Asked Questions

Q: Do the new townhouse planning rules make development easier in Melbourne?

A: Yes, if you understand neighbourhood character upfront. Projects that demonstrate clear character response can achieve approval in 60 days instead of 120—that’s the 2025 streamlined pathway. Focus on documenting existing streetscapes, matching setbacks and materials, and engaging council early. In Richmond and Fitzroy, heritage sensitivity isn’t optional; it’s the fast-track key. The difference between a smooth approval and a 6-month appeal cycle often comes down to one pre-application meeting with planners who understand your specific suburb’s overlay requirements.

Q: How important is it to hire an architect experienced with heritage and character requirements?

A: It’s one of the highest-value investments you can make early. Professional architectural input typically adds 15–20% project value through better planning outcomes and smoother approvals, especially in heritage-sensitive areas like Richmond and Fitzroy. Architects with FRAIA credentials and heritage experience know exactly what council planners will scrutinise—roof forms, setbacks, materials, overlooking angles—and can embed compliance into designs from the start. This upfront investment prevents costly redesigns and VCAT appeals later.

Q: What’s the typical timeframe from pre-application meeting to approval?

A: If character is addressed upfront, expect 14–18 weeks from pre-application meeting to council approval. Without early engagement, 24–36 weeks is common due to revision cycles and objections. The streamlined pathway isn’t automatic; it depends on demonstrating that your townhouse design respects and enhances the neighbourhood’s existing character. Pre-application meetings with council planners reduce objections by approximately 40%, making them the single most important step in shortening your approval timeline.

Q: What’s the first step if I’m planning townhouses in Yarra or Stonnington?

A: Book a pre-application meeting with council planners at least 8 weeks before your intended lodgement date. Before that meeting, review your site’s neighbourhood character overlay and measure setbacks, heights, and materials of five neighbouring properties. This groundwork demonstrates to council that you understand local context and have designed with character in mind. Many developers skip this step and face rejection; doing it upfront positions your application for fast-track eligibility.

Want to Learn More?

We’ve drawn on decades of experience and industry expertise—400+ completed projects, 59 heritage restorations, and 235+ multi-residential dwellings delivered across Victoria—to create this comprehensive guide for Melbourne developers and property owners navigating the new townhouse planning rules.

Citations

• Townhouse and Low-Rise Code: The Victorian Planning Provisions have introduced streamlined approval pathways for qualifying developments in 2025. This official guide explains eligibility criteria, neighbourhood character assessment requirements, and the fast-track process for projects meeting code standards. https://www.planning.vic.gov.au/guides-and-resources/guides/all-guides/residential-development/townhouse-and-low-rise-code
• New Townhouse and Low-Rise Code News: Victorian Government Planning confirmed that the 2025 code amendments now allow council officers to approve compliant projects within 60 days instead of 120, provided neighbourhood character is demonstrated upfront. This announcement confirms the approval timeframe and streamlined pathway described throughout this guide. https://www.planning.vic.gov.au/news/articles/new-townhouse-and-low-rise-code
• Residential Development Guides: The Victorian Planning Provisions’ residential development resources outline Clause 55 (ResCode) requirements, heritage overlay rules, and site-specific character assessment obligations that underpin council decision-making in Yarra and Stonnington. https://www.planning.vic.gov.au/guides-and-resources/guides/all-guides/residential-development

Compliance with Victorian Planning Provisions Clause 55 (ResCode) as amended January 2025, combined with Yarra Council and Stonnington Council’s neighbourhood character overlay requirements, remains the foundation of all townhouse planning decisions in inner Melbourne.

If you’d like to explore how we approach townhouse planning and character-sensitive design for your Richmond, Fitzroy, Armadale, or Malvern project, visit our consultation page to discuss your next steps.

Conclusion

Ready to navigate the new townhouse planning rules with confidence? BY Projects Architecture has guided 235+ dwellings through evolving ResCode provisions and Melbourne’s heritage requirements, achieving streamlined approvals by embedding neighbourhood character into designs from day one. Whether you’re planning in Richmond’s heritage precincts or Stonnington’s density zones, early engagement with experienced architects—backed by deep council relationships and realistic expectation management—transforms potential delays into approval pathways. Your project’s success depends less on the rules themselves and more on understanding your specific suburb’s overlay requirements and acting on them upfront. Let’s work together to turn your townhouse vision into a neighbourhood asset that council approves quickly and neighbours respect.

By automation
Jan 22, 2026