The 2023 Housing Statement has reimagined its mission, setting a new course to guide Victoria’s growth until 2050.
The central shift in focus is the adoption of a 70/30 split for housing allocation, favouring the established suburbs (70%) over greenfield areas (30%) to accommodate Melbourne’s growing population.
These changes have raised concerns, particularly among greenfield developers and vendors, as the plan has led to the reprioritisation of several Precinct Structure Plans (PSPs) across the state. The primary concerns revolve around the reallocation of PSPs that were previously under development but are now lingering in doubt due to their recent removal from the VPA’s work program. This removal marks a halt in the development of housing infrastructure in these areas, which will impact future supply.
Notably, regional PSPs, including Merrimu and Parwan, were removed from the list. In the metropolitan region, Kororoit, Wallan South and East, Cardinia Creek South, Oakbank, and Rockbank South were omitted.
This shift in the development landscape has tangible effects on the ground, significantly affecting future housing supply in growth areas. The plan’s removal of PSPs that were strategically located in areas with a strong emphasis on jobs and education raises concerns about accessibility and the necessity for residents to travel further for work and study.
However, a number of key planning projects remain as priority projects. These are listed in our Q3 2023 Greenfield Market Report.
The need for clarity in land planning has never been more pronounced. As government policies evolve to accommodate Melbourne’s rapid growth, it’s crucial that industry stakeholders have the resources to understand these changes and their implications.