What is the difference between the Neighbourhood and General Residential Zones?
- Jibril Bateman
- May 9
- 2 min read
Updated: May 10

In the Victorian Planning Provisions (VPPs) in the state of Victoria, the Neighbourhood Residential Zone (NRZ) and the General Residential Zone (GRZ) are both residential zones but have distinct differences in terms of density, character, and development controls.
1. Neighbourhood Residential Zone (NRZ)
Purpose: To preserve the character of established low-density suburban areas.
Density: Low-density – intended for areas where minimal change is expected.
Height limits: Mandatory maximum building height of 9m (2 storeys), although this can be varied under certain overlays.
Subdivision: Typically allows for limited subdivision; minimum lot sizes may apply.
Development scale: Limits the number of dwellings on a lot – often just one or two dwellings unless specified otherwise.
Design emphasis: Strong emphasis on maintaining neighbourhood character and existing streetscapes.
2. General Residential Zone (GRZ)
Purpose: To accommodate moderate housing growth and diversity in residential areas.
Density: Medium-density – suitable for townhouses, units, and small apartment developments.
Height limits: Mandatory maximum building height of 11m (3 storeys).
Subdivision: More flexible – allows more dwellings per lot compared to NRZ.
Development scale: Encourages infill development and a greater variety of housing types.
Design emphasis: Still considers neighbourhood character but is more open to change and evolution in built form.
Summary Table
Feature | Neighbourhood Residential Zone (NRZ) | General Residential Zone (GRZ) | |
Density | Low | Medium | |
Max Building Height | 9m (2 storeys) | 11m (3 storeys) | |
Dwelling Limit per Lot | Often limited | More flexible | |
Subdivision | Restricted | Encouraged (to a degree) | |
Character Protection | High priority | Balanced with growth | |
Housing Diversity | Limited | Moderate to high |
Give us a call if you would like to discuss zoning in more detail or have any other planning related enquiries.
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