This article is from the Australian Property Journal archive
VICTORIA will release and rezone surplus state-owned land near trains that will unlock around 9,000 homes across Melbourne and the regions and at the same time, the Allan government announced the largest ever single release of greenfield land for development, to deliver 180,000 homes, as it continued this week’s housing policy blitz.
Meanwhile, work to develop the massive government-owned Arden Precinct into housing for 20,000 people is progressing. Following an expressions of interest process to find a suitable project partner, and evaluation by Development Victoria, four bidders have been shortlisted to proceed to the request for proposals stage.
The shortlisted bidders are: Australian Unity, together with Formus Property, Community Housing Limited and Lyons; Gurner and MAB Corporation together with Women’s Housing Limited and SOM; Hamton Group together with Woods Bagot, Populous and Nelson + Khoo; and Lendlease Development and Assemble together with Scape, Keyton, NH Architecture and Prior + Partners.
The Arden Precinct is shaped around Arden train station, one of five new stations that will form part of the soon-to-be-opened Metro Tunnel project.
As part of its newly-announced program, the government will release 45 surplus sites near trains in all. Two government land sites near Oakleigh and Footscray stations – both along the Metro Tunnel’s train line – will be released to market later this week.
“The expression of interest process will explore commercial partnerships that will boost the number of homes on these surplus land sites – homes for young people to buy or rent,” the government said.
“The two sites are well suited for mid-rise living and have the potential to deliver around 240 homes, with a minimum of 10% affordable homes.”
Melbourne’s rental market is witnessing a crushingly low vacancy of 1.67%, according to the latest PropTrack data.
VicTrack will oversee the EOI and Request for Proposal process for the Oakleigh and Footscray sites. The successful bidders will determine the type of housing offered at each site and will be required to start construction within 18 months.
Oakleigh was among the 25 suburbs named as part of the government’s announcement earlier this week of train and tram activity centres around Melbourne – which will ultimately total 50 – that will be earmarked for higher-density housing. That followed an initial activity centres program announcement in August naming 10 pilot suburbs.
The Allan government has also announced this week a major stamp duty concession that will be available to off-the-plan apartment, unit and townhouse buyers for the next 12 months.
The announcements are in tandem with its ambitious Housing Statement, released a year ago, which aims for the delivery of 800,000 homes over a decade – and obligations to be fulfilled as part of the National Housing According and Housing Australia Future Fund.
The release of the two additional VicTrack sites to market follows the Labor government’s Small Sites Pilot Program, which saw four sites of surplus government land unlocked in Alphington, Coburg, Malvern and Preston, with a potential for 260 homes to be built. The government said yesterday it would release an estimated additional 10 sites to the market in the coming months, which are expected to deliver 500 more homes across the state.
“From small sites in our well-established suburbs that will house a few hundred people to one of our biggest sites that will be home to thousands of Victorians – we’re unlocking government land to get more homes built,” Premier Jacinta Allan said.
“We absolutely need more homes near public transport – near train stations and trams.”
Greenfield release could deliver 180,000 homes
The government will also release 27 additional greenfield areas across Melbourne’s outer south-east, north, and west over the next 10 years that could deliver 180,000 new homes.
The first three greenfield plans set to be released in 2024-25 include the Northern Freight Precinct, an employment precinct in Whittlesea Council, Cardinia Creek South Part 2, a residential precinct in Cardinia Council, and Kororoit Part 2, the western corridor within Melton Council, adjacent to Caroline Springs.
“All up, the 10-year plan represents the longest ever pipeline of new land in greenfield areas, so growing families can have more opportunities for a home, backyard and community,” the government said.
“The key part of the 10-year plan is the horizon it gives to home builders – they can see exactly where the opportunities lie for their sector and look ahead with confidence.”
Chronic labour shortages and high materials costs in the construction industry, and high interest rates and planning red tape, are holding back capacity and created uncertainty around project timelines around the country.
Planning Authority to be merged
The government announced that from the beginning of 2025, the Victorian Planning Authority will be integrated with the Department of Transport and Planning.
Its said it would also offer a dedicated concierge service to work with councils and industry to identify, intervene and fix the issues that are preventing zoned land from being developed.
“Government will also review several existing greenfield PSPs that are not yet fully developed to understand opportunities for increasing the number and types of homes where there is sufficient planned infrastructure,” it said.
