Glossary
Zoning
Zoning is the classification a local planning scheme gives land, controlling what it can be used for and what can be built. Zones and overlays are set under state planning laws and local planning schemes.
An example
Before making an offer on a site, a developer checks the planning scheme to confirm the zone allows residential development and whether any overlays, such as heritage or flooding, apply.
Why it matters
Zoning affects value, saleability and what a lender will accept as security. A rezoning can add value but is uncertain, and lenders usually value land on its current zoning.
Points to check
Check the zoning and overlays that apply to a site before buying, using the planning scheme maps for the relevant council. Zoning can limit what you can build and how long approvals take. Ask whether any planning changes are proposed. Lenders usually want to see that the planned use is permitted or has a planning permit, so include planning due diligence early in your timeline.