The same ResCode standards apply across Victoria, but the key numbers — garden area, site coverage and building height — tighten or loosen with the residential zone, which is usually the single biggest factor in what you can build. This guide compares how ResCode applies across the three main residential zones: the Neighbourhood Residential Zone (NRZ), General Residential Zone (GRZ) and Residential Growth Zone (RGZ). For a full overview of what ResCode is and how it works, see our main guide: ResCode Victoria.
ResCode standards by zone: NRZ vs GRZ vs RGZ
The residential zone sets the garden area, site coverage and height limits that shape your buildable envelope. The NRZ is the most restrictive, the RGZ the most permissive, and the GRZ sits between them. The indicative figures are:
| Standard | NRZ (most restrictive) | GRZ (the workhorse) | RGZ (most permissive) |
|---|---|---|---|
| Garden area | 35% (lots >650m²) | 35% (lots >650m²) | Not applicable |
| Site coverage | Up to 60% | Up to 65% | Up to 70% |
| Permeability | At least 20% | At least 20% | At least 20% |
| Building height | 9m / 2 storeys | 11m / 3 storeys | 13.5m / 4 storeys (low-rise apartments) |
Neighbourhood Residential Zone (NRZ)
The NRZ is the most restrictive residential zone: 35% garden area, 60% site coverage and a 9-metre (two-storey) height limit. It is applied to areas where the council wants to limit the scale of new development, so it generally supports lower dwelling yields. A dual occupancy or a small townhouse project is often the realistic ceiling on an NRZ lot.
General Residential Zone (GRZ)
The GRZ is the most common residential zone and the workhorse for medium-density projects: 35% garden area, 65% site coverage and an 11-metre (three-storey) height limit. Most Melbourne townhouse and dual occupancy projects are assessed in the GRZ, and the 65% site coverage plus three-storey height typically supports a higher yield than the NRZ. For how zone and lot size interact for yield, see our guide to townhouse development in Victoria.
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Residential Growth Zone (RGZ)
The RGZ is the most permissive residential zone: no garden area requirement, up to 70% site coverage and a 13.5-metre (four-storey) height limit, which enables low-rise apartment development. It is typically applied near activity centres and transport, where the planning system encourages higher density.
Garden area: the standard that most often limits yield
In the NRZ and GRZ, ResCode reserves 35% of the site as garden area before any building is drawn on lots above 650m² — 25% for 400–500m² lots and 30% for 501–650m². On an 800m² lot that locks away roughly 280m² as landscaped open space, which is why an otherwise generous block may only support three townhouses rather than four. The RGZ has no garden area requirement, which is a key reason it supports higher yields. Full detail: the minimum garden area requirement in Victoria.
Site coverage and setbacks
ResCode caps the building footprint at 60% of the lot in the NRZ, 65% in the GRZ and 70% in the RGZ, and requires side and rear setbacks that start at 1 metre and grow as walls get taller. Together these shape the buildable envelope after the garden area is removed. See site coverage in Victoria and building setbacks and council variations.
How the zone shapes your dwelling yield
ResCode is applied in sequence: deduct the garden area, apply the site-coverage cap to the balance, subtract the setbacks, and test the remaining envelope against the height limit and overlooking rules. Because each of those numbers changes with the zone, the zone is usually the biggest single driver of how many dwellings a site can support. Overlays (heritage, significant landscape, vegetation protection) can tighten any of these further, and councils retain discretion on neighbourhood character grounds, a decision that can be tested at VCAT. To see how lot size interacts with the zone, see our guide to ResCode dwelling yields by lot size and zone.
Frequently asked questions
Which residential zone allows the most development in Victoria?
Of the three main residential zones, the Residential Growth Zone (RGZ) is the most permissive — no garden area requirement, up to 70% site coverage and a 13.5-metre height limit, enabling low-rise apartments. The General Residential Zone (GRZ) is next, and the Neighbourhood Residential Zone (NRZ) is the most restrictive.
What is the difference between the NRZ, GRZ and RGZ under ResCode?
The standards are the same package, but the key numbers differ: garden area is 35% in the NRZ and GRZ but does not apply in the RGZ; site coverage is 60% (NRZ), 65% (GRZ) and 70% (RGZ); and height limits are 9m (NRZ), 11m (GRZ) and 13.5m (RGZ). These differences usually drive the achievable dwelling yield.
How do I find out which zone my property is in?
You can check your property’s zone through the Victorian Government’s free planning property report (VicPlan). The zone, together with any overlays and the council schedule, determines the ResCode standards that apply to your site.
Does the zone override ResCode?
No — the zone and ResCode work together. ResCode sets the standards; the zone (and its schedule) sets several of the key numbers those standards use, such as site coverage and height. Overlays can apply further controls on top.
This article provides general information only. For project-specific guidance, consult with qualified professionals.
Reviewed May 2026 by Sammi Lian, Principal Architect — SQM Architects (ABN 32 600 928 390, ARBV Reg. No. 51498). This article is general information about Victorian planning and development, not personal, legal or financial advice.
