The Victorian State Government has made two major announcements over the past weekend including updated housing targets for local councils and additional detail around its plan to densify 10 activity centres around Melbourne. This comes after two rounds of community consultation with the updated activity centre plans scaling back maximum heights in the outer areas of activity centres and reducing catchment zones across most of the centres based on a more detailed assessment of walkability.
Updated Housing Targets
Revised housing targets scale back the initial 2 million dwelling target to 2051, with a new target of 1.78 million dwellings. Key changes include Melbourne’s outer and growth areas (as defined by the Department) where the target has been scaled back by -145,000 dwellings, broadly equivalent to the current size of Geelong.
Further announcements are expected for housing targets in regional Victoria.
While the housing targets have been scaled back, the State Government continues to express a strong commitment to holding Council’s accountable to the targets.
Revised Activity Centre Rules
Activity centres have been structured with a central core, surrounded by a walkable precinct. Maximum height limits for core precincts will range from 10 to 20-storeys, while the walkable precincts will range from 3 to 4-storeys, with the potential to go to 6-storeys depending on the size of the block.
Walkable precincts will be divided into an inner/outer catchment with the intent that height transitions from higher to lower.
Core precinct height limits:
- 10-storeys – Niddrie, North Essendon, and Preston.
- 12-storeys – Broadmeadows, Camberwell, Chadstone, Epping, and Moorabbin.
- 16-storeys – Ringwood.
- 20-storeys – Frankston.
As part of the plan, planning applications in the core precincts will undergo a fast-tracked ‘deemed to comply’ pathway, which means applications that meet the building height, street wall height, and setback requirements cannot be refused on the basis of those requirements.
Developers will be required to make a local infrastructure contribution, and the government has included stronger controls to protect sunlight and prevent overshadowing of parks and open spaces.
These new rules will support more density in Melbourne’s suburbs and create new opportunities to activate the development pipeline which has slowed in recent years.
Development feasibility will continue to challenge the delivery of more housing however, and developers will need to continue to think strategically, minimise costs, and find ways to innovate.
Urbis has been working closely with our clients to identify strategic site opportunities within these precincts, applying our in-house model to rapidly test development feasibility under the proposed planning controls and short-list land use opportunities.
Please get in touch with the team below should you wish to know more.
We are also expecting a range of other policy announcements this week, so watch this space.