The State Government has announced 25 activity centres it will target for the development of new homes in the fight against the housing shortage crisis.
Key Suburbs Targeted for Residential Development
Property developers will be taking note after the Premier and Planning Minister announced hip inner-city suburbs like South Yarra, Prahran, Brunswick, and Thornbury as hubs they will be encouraging residential development in.
But it is not just inner-city areas—outer suburbs such as Dandenong, Holmesglen, East Malvern, Ashburton, and areas along the Cheltenham, Upfield, and Mernda train lines are also on the list.
Areas with less public transport capacity, such as along the Alamein line and suburbs like Ashburton and Bentleigh, will be classified as neighbourhood activity centres aimed at smaller growth.
Government Plans for Housing Development
The government will also classify the Melbourne and Yarra council areas differently from others, aiming to fast-track developments and strategic sites, while targeting underutilized land.
The goal is to build 300,000 homes in the 25 new activity centres by 2051. However, there is currently no clarity on what height limits will be imposed on these new sites.
Flexible Approach to Height Limits and Density
Planning Minister Sonja Kilkenny has stated that each activity centre will be assessed individually, with height limits set on a case-by-case basis.
In a media statement, Premier Jacinta Allan emphasized that increasing density and building height around public transport hubs makes the most sense.
Local Government and Developer Support
Dandenong Mayor Jim Memeti expressed support for the plan, provided that development occurs in the right locations and includes adequate consultation.
“We know that we need to deliver more homes for our community, and this new initiative today will support that along our train lines,” he said.
Fast-Tracking the Planning and Construction Process
Part of the government’s activity centre proposal includes fast-tracking the planning process for multi-storey residential dwellings, reducing approval times from five years down to 12 months in some cases.
Additionally, to streamline residential construction, projects that adhere to the new height limits will experience faster approvals and a more efficient development process.
