This article is from the Australian Property Journal archive
Victoria’s Allan government has revealed the next 25 activity centres across Melbourne that will accommodate hundreds of thousands of homes, and “nothing is off the table” in the inner-city as governments scramble to pump supply into the heated housing market.
The train and tram zones aim to deliver 300,000 homes around more than 50 train stations and busy tram stops across Melbourne by 2051 through rezoning and relaxing development restrictions to allow for high- and medium-density housing.
Premier Jacinta Allan and Minister for Planning Sonya Kilkenny’s announcement yesterday continued a raft of policy agenda unveilings from the government. They included the introduction of a “townhouse code” that will see “automatic” approvals for duplexes, townhouses and low-rise apartments, threatening to strip council of their planning powers if they stall on meeting designated housing targets, and honing its planning regulations around pilot activity centres.
Suburbs that were part of yesterday’s announcement include inner north locations Brunswick, Coburg and Thornbury, inner south suburbs South Yarra, Prahran and Windsor, as well as Caulfield, Ormond and Bentleigh, and Dandenong further out in the south-east.
They will join locations such as Middle and North Brighton, Middle and West Footscray, Toorak, Malvern and Glen Iris.
“This will deliver more homes in areas well-served by trains, trams, shops and jobs – places where so many Victorians want to live but who have been locked out because of a sheer lack of choice and supply,” Kilkenny said.
The government also said it would pilot a new model for train and tram zone activity centres in the inner city.
“These areas are already built up, and in many places benefit from zoning allowing thousands of homes. But there is much more to do: various under-utilised and under-zoned pockets – including near many key stations and tram corridors – are holding Melbourne back,” the government said.
The government said it will work with councils as part of two city-wide activity centres in Inner City (Yarra) and Inner City (City of Melbourne) to deliver housing.
The process will involve detailed identification and mapping, with the aim of considering up-zoning strategic sites, using newly developed planning controls, and fast-tracking specific site developments.
“Nothing is off the table – but it’s work the government intends to do alongside council,” the government said.
Vacancy rates in the rental market remain crushingly low amid a national housing crisis fuelled by a severe undersupply of homes. The federal government’s National Housing Accord is aiming to deliver 1.2 million “well-located” homes over five years in a bid to add new dwellings into the market, while the Victorian government is aiming for 800,000 homes over 10 years. However, construction constraints and planning processes are expected to get in the way of achieving those targets.
Across all 50 centres, the government said lengthy structure planning processes – which can take up to five years – will be reduced to around 12 months. The process for the 50 centres is likely to be complete by early 2026.
Consultation with community on the first tranche of train and tram zones will open in April.
“We will strike the right balance between listening and acting. People will certainly get a say, but at the same time, we must keep the foot on the pedal to fight the housing crisis,” Kilkenny said.
A report from CoreLogic and Archistar late last year identified 1.3 million sites across the country that could deliver more than three million “missing middle” strata units and which could be delivered at a faster clip than higher-density housing.
The report assessed the development potential of capital city land that doesn’t currently have a strata development and where local regulations allow for higher density dwellings – Melbourne was home to the largest number of sites, with more than 472,000 lots identified with the potential to deliver almost 1.2 million new strata units.
