This article is from the Australian Property Journal archive
Victoria’s Allan government has thrown down the gauntlet to the state’s local councils, threatening to strip them of their planning powers if they stall on meeting designated housing targets.
The Allan government is setting housing targets in every local government area to deliver 2.24 million homes by 2051. Since releasing draft targets last year, the government has met with each council to gauge their plans and the barriers they face in unlocking supply.
“We’ll be clear: if individual councils don’t try to meet these targets, they’ll lose their planning powers,” the government said.
“If councils don’t start doing the planning work now to meet these targets, the government will intervene and unlock space for more homes – including through rezoning. The Minister for Planning will also retain her powers to intervene or fast-track developments.”
The state government noted that over the last 30 years, Victoria grew by 65% – but the growth wasn’t evenly dispersed. Housing in outer suburban councils like Melton grew 433%, in Wyndham by 346% and in Casey by 211%.
By comparison, inner-suburban council areas such as Boroondara and Bayside recorded among the lowest rates of growth – by 24% and 28% respectively in three decades.
Speaking at the Boroondara suburb of Hawthorn yesterday, Premier Jacinta Allan said, “It’s simple – work with us to unlock space for more homes or we’ll do it for you.
“It’s not fair that Victorian families and young people have been completely locked out of living in some areas, while other parts of Melbourne have had to bear the brunt of all that growth.
“We’re in a housing crisis and the status quo is not an option. It’s time to shake things up.”
The targets aim to deliver 70% of growth in established areas and 30% of growth in the outer suburbs.
Since 1996, the western suburbs of Melbourne collectively grew 114%, and the north and the south-east grew 75%. The inner south-eastern and eastern suburbs grew 32% and 36% respectively.
“More homes are needed in established suburbs close to jobs, transport and services, so that young people can live near family and work. And pressure needs to come off outer suburbs that have carried too much of the load,” the government said.
“Government believes more and more councils have recognised the severity of Australia’s housing crisis and are now up to the task of delivering more homes in a way that’s right for locals.
“Councils that have previously clamped down on home growth, like Boroondara, are now ready to focus on the future. The targets state 65,500 new homes will be needed in Boroondara by 2051 – an 88% increase.”
The government said this target of growth is appropriate for Boroondara, “given the space in the municipality for gentle infill, the opportunity to unlock strategic sites, the busy commercial precincts in Camberwell, Hawthorn and Kew, and an inner-suburban setting close to well-serviced trams and train lines that have had every level crossing removed”.
Premier Allan and Minister for Planning Sonya Kilkenny announced over the weekend revised housing development plans for 10 pilot Activity Centres, including boundary reductions and lower height limits, following community consultation which saw engagement with more than 10,000 people, councils and other key groups.
The Activity Centres – which include Boroondara’s Camberwell Junction – are designated for higher density housing around key train, tram and bus links and shops, services, and schools.
New greenfield housing sub-targets that have been introduced for growth area councils in metro Melbourne – as well as in Geelong, Bendigo and Ballarat.. The state-wide target projects 25% of homes will be in regional Victoria by 2051.
The 2051 target takes a longer-term view beyond the government’s Housing Statement, announced in 2023 stating the aim of delivering 800,000 homes over a decade.
