The Victorian Government has unveiled a series of transformative housing policies that promise to reshape Melbourne’s urban landscape. Premier Jacinta Allan’s announcement over the weekend marks the beginning of a series of strategic moves aimed at addressing the city’s housing challenges.
Urbis welcomes the announcement and looks forward to further developments over the coming weeks. So, what are the changes so far? Here is a breakdown of the key highlights:
- Introduction of 50 Higher-Density Zones – Premier Allan unveiled plans for 50 new ‘activity zones’ near Melbourne’s train and tram stations. This initiative aims to enable the construction of around 300,000 additional homes by 2051, with a focus on high-density residential buildings between three and 20 storeys.
- First Phase of Development Zones Identified – The government has identified 25 initial zones for development, primarily in Melbourne’s east and southeast, including areas along the Belgrave/Lilydale, Sandringham, Frankston, and Glen Waverley train lines . The remaining 25 zones will be announced later this year, building on the initial ‘Activity Centre Pilot Program’.
- Stamp Duty Changes – In a move to encourage denser developments, the government has slashed stamp duty for all off-the-plan units, townhouses, and apartments under a 12-month stimulus plan. This change is expected to save buyers tens of thousands of dollars, with the government estimating a reduction in stamp duty for a new $620,000 apartment from $32,000 to just $4,000.
- Development Contribution Reform – Seeking to improve consistency around the State, the Victorian Government is undertaking a review of the developer contributions system, and establishing a dedicated working group to inform a new model. The new development charge will be rolled out in the first tranche of the Activity Centre Program from 1 January 2027.
