The density curve
The first additional dwelling is the most expensive one you will ever buy — and the answer differs by suburb.
Schedule 2 of the determination is a grid: about 105 suburbs down the side, eight dwelling-count bands across the top. The rate you pay is selected by the total number of dwellings after the variation, not by how many you are adding — and it falls as the total rises.
That produces a curve most people get wrong, because the per-dwelling rate applies to every additional dwelling, not just the marginal one.
So in O'Connor, two dwellings is close to the worst configuration available: you pay the highest rate in the schedule and get the least product to spread it over. In Chapman, two dwellings works. Same rules, opposite answers, and the only way to know is to have the schedule. What a second dwelling costs and what stops it is the same question asked one block at a time.
What the curve does not tell you
It prices the charge. It does not tell you what you can actually build. Zone, block size, plot ratio, the density targets in the Residential Zones Technical Specifications, private open space, solar access, parking and the shape of the block all constrain the achievable yield — and a three-dwelling scheme on a 600 m² block may be arithmetically attractive and physically impossible.
Where the block is the binding constraint, the site can be made bigger. Building a site out of several blocks moves a scheme along this curve rather than up it: the dwelling count that was physically impossible on one block becomes ordinary across two, and the rate that applies falls, because the rate is selected by the total.
The curve also stops being purely a pricing question at three. From 1 October 2026 a three-dwelling scheme requires a property developer licence, and the trigger is lodging the development application — a cost and a lead time that Schedule 2 does not show.
Use the curve to decide which configurations are worth designing. Then get someone to design them.
Before any of this matters, the site has to work
The licence, the charge and the planning pathway are all downstream of one question: is the block worth developing at all? Put an ACT address in and get the zone, the unimproved value, the Lease Variation Charge at two, three or four dwellings, and a verdict on the asking price.
Last reviewed 1 August 2026. Every figure here should be verified against the current instrument — see sources and method.
Other explainers
- The ACT property developer licence
- Building a site out of several blocks
- Residual land value
- Why unimproved value is your floor
- The Lease Variation Charge, and the missing middle remission
- Dual occupancy on an RZ1 block
- The $1.28 rule
- Time is a cost
- Why “DA approved” may be worth nothing
- Former Mr Fluffy blocks
- Reading a Crown lease purpose clause
- What MPA 04 changed on 1 July 2026
- The Pattern Book
- Buyer incentives from 1 July 2026