The Victorian government has unveiled its final housing capacity targets, setting the stage for a significant expansion in key growth areas across the state. While some areas have seen their targets reduced, others are positioned to undergo substantial development as part of a broader strategy to address the ongoing housing crisis.
The revised targets are part of a plan to build 2.24 million new homes by 2051, following the draft proposals announced in June 2024. The government’s strategy shifts focus to delivering 70% of Melbourne’s housing growth in established urban areas and 30% in outer-city suburbs, reversing current trends.
Significant Target Reductions for Some Areas
Certain council areas have seen their housing targets significantly reduced. Suburbs including Hobsons Bay, Hume, Manningham, and Mornington Peninsula have had their targets trimmed by a total of 45,000 homes. The most notable reduction occurred in Nillumbik, an outer-northern Melbourne suburb, where the proposed target dropped from 12,000 homes to 6,500.
Premier Jacinta Allen emphasized the importance of balancing growth across metropolitan and regional areas to ensure a sustainable housing market. “Our regional councils are already doing great work to deliver more housing, and we’ll continue to work with them to ensure they have the support needed to get more homes off the ground,” she said.
Regional Victoria Set for Growth
As part of the housing strategy, 25% of the new homes will be built in regional Victoria, supporting the state’s balanced growth. Key regional areas slated for development include Greater Geelong (128,600 homes), Ballarat (46,900 homes), and Bendigo (37,000 homes).
Industry Leaders Urge for More Support
Cath Evans, Executive Director of the Property Council of Victoria, welcomed the updated housing targets but warned that more must be done to address the feasibility of the projects. “It is critical for the government to provide the industry with much-needed tax relief in its May budget to attract the investment necessary to meet these targets,” Evans said. “Without targeted relief to address structural issues, it’s hard to see how these ambitious targets can be achieved.”
Holding Councils Accountable for Meeting Targets
In a move to ensure progress, the government has announced that councils will need to demonstrate how they plan to meet their housing targets. Failure to do so could result in the loss of planning powers, with the state government stepping in to enforce the necessary changes.
“It’s simple – work with us to unlock space for more homes, or we’ll do it for you,” Premier Allen declared. She stressed that it was unfair for certain areas of Melbourne to bear the brunt of population growth while other suburbs remain underdeveloped. “We’re in a housing crisis, and the status quo is not an option. It’s time to shake things up.”
Streamlined Approvals for New Housing
In addition to the revised housing targets, the government has introduced a new “Townhouse and Low-Rise Code” to streamline the planning and approval process for townhouses up to three storeys high. The code aims to reduce costly delays and bypass red tape, with applications that meet the new standards considered to be automatically approved.
The government’s move to expedite approvals is seen as a crucial step in addressing the housing crisis, with planning permit assessments currently taking an average of 145 days. “To the councils who are now ready to build, I say: let’s talk,” said Minister for Planning Sonya Kilkenny.
Looking Ahead
While the government’s revised housing plan focuses on the most pressing needs for new homes in both metropolitan and regional areas, further codes for buildings between four and six storeys are in development. The specifics of these guidelines have yet to be released, but they are expected to further streamline housing development across the state.
With the clock ticking on addressing the housing crisis, all eyes will be on the Victorian government’s ability to meet these ambitious targets and ensure that more affordable homes are built to meet the needs of a growing population.
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