Quick Guide to the Victorian Housing Statement
Over the last decade, housing prices in Australia have continued to rise, with the median transfer house price reaching $810,500 in Melbourne at the beginning of the year.
The Federal Government’s $10 billion Housing Australia Future Fund passed the Senate earlier this month. Following this, the Victorian Government released its Victorian Housing Statement on 20 September 2023, shaping its plan to address the housing crisis.
The statement outlines a range of initiatives that aim to streamline housing approvals, see architectural designs for multi-residential developments readily available, optimise under-utilised commercial space, improve infrastructure to allow regional growth, increase social housing opportunities, and address market affordability. For built-environment professionals across Victoria, these initiatives may impact approaches to current projects and will inform business development activities. Our team has conveniently summarised the key initiatives below.
Planning Reform
Initiatives to speed up housing approvals:
A dedicated team to assist with processing the backlog of 1,400 housing permit applications stuck with councils for over six months.
Expansion of the Development Facilitation Program will give the Minister for Planning the power to directly approve significant residential developments that include affordable housing.
The introduction of clear planning controls to deliver an additional 60,000 homes around an initial 10 activity centres across Melbourne: Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie (Keilor Road), North Essendon, Preston (High Street) and Ringwood.
Relaxing approvals concerning small second homes. Dwelling garden units will not require a planning permit if they are less than 60 square metres. Additional permit exemptions for single dwellings for alterations, including extensions to sheds and carports, will also be introduced.
Development application assessment pathways will be streamlined with a range of new Deemed to Comply residential standards for different types of homes.
The Future Homes program will be expanded, which currently provides four sets of readymade architectural designs that developers can purchase and adapt to a site through a streamlined planning process.
Single dwellings on lots bigger than 300 square metres and not covered by an overlay will no longer require a planning permit. Single dwellings on lots smaller than 300 square metres, where an overlay doesn’t exist, will be addressed within 10 days.
Red Tape Commissioner recommendations will be implemented in the planning system.
The Property Council of Australia (PCA) and the City of Melbourne have identified almost 80 commercial office buildings that are currently under-used due to changing work patterns and increasing demand for flexible floor space. The Victorian Government will work with the PCA and the City to consider opportunities to facilitate the conversion of these offices into around 10,000-12,000 apartments and mixed-use properties.
Strategy to speed up water connections in greenfield areas.
Department of Transport and Planning will hire 90 new planners.
Market housing
Initiatives to drive cheaper market housing in the metro area:
Priority precincts, including Arden, Docklands, Fishermans Bend, Footscray, National Employment and Innovation Clusters, Parkville, Sunshine, Richmond to Flinders Street corridor and Precincts and suburbs are expected to deliver around 150,000 homes – with the opportunity for more homes to be built as these precincts grow over time.
An Institutional Investment Framework will be established, creating a dedicated planning pathway and one-stop shop for institutional investors to facilitate investment at scale in social, affordable, key worker and market homes.
A market search for proposals to activate the Arden Precinct, ahead of the Arden Metro Tunnel train station opening earlier in 2025, will be commenced to partner with the private sector, industry and investors to start delivering the Arden Precinct – with quality and affordable housing to support diverse residents and key workers, including affordable build to rent, build to sell, shared equity and key worker housing.
Surplus government land will be unlocked and rezoned to deliver around 9,000 homes across 45 sites in metropolitan Melbourne and regional Victoria; there will be a target to ensure at least 10 per cent of the dwellings delivered across these sites will be affordable homes.
Victoria’s apartment design standards will be further strengthened.
The Victorian Planning Authority will continue preparing Precinct Structure Plans (PSPs) for new housing and jobs in Melbourne and regional Victoria. Further work across 21 priority projects will continue to be developed to deliver more than 60,000 homes and 60,000 jobs. They’ll deliver a sustainable supply of greenfield land and more jobs close to home while we plan for more housing choices in all parts of Victoria.
Regional Victoria
Initiatives to improve housing supply in regional Victoria:
$1 billion Regional Housing Fund to deliver more than 1,300 new homes across regional Victoria.
A $150 million Regional Worker Accommodation Fund to provide new housing options for regional communities where key workers are struggling to find affordable places to live.
Social Housing
Initiatives to increase Social Housing supply:
Building up to 769 homes through the Commonwealth’s Social Housing Accelerator – on top of 12,000 homes in the pipeline as part of our Big Housing Build
Planning for the second Ground Lease Model stage is underway. It will include the following locations: Bluff Road in Hampton East, Barak Beacon in Port Melbourne, Horace Petty in South Yarra and Essex Street in Prahran.
Melbourne’s 44 ageing highrise public housing estates will be retired or redeveloped by 2051.
$1 billion will be invested in the Affordable Housing Investment Partnership (AHIP) program, providing low-interest loans and government guarantees to finance social and affordable housing for Victorians that need it most – including projects that provide affordable housing for essential and key workers.
The Victorian Government will explore opportunities to buy pre-sale off-the-plan apartments in medium and high-density developments to boost Victoria’s social housing stock.
A call for expressions of interest to test market appetite for the government to undertake long-term head leases of apartments and units that remain unsold in new development projects to boost the supply of social and affordable housing.
Long-term Planning
Long-term planning initiatives:
Plan Melbourne will be updated, spanning 2017-2050 and expanded to cover the whole state.
The Planning and Environment Act 1987 will be reviewed and rewritten to create a modern, fit-for-purpose planning system.
It is undoubtedly a time of change for the sector, where strong business development strategies will rely on closely adapting to the rollout of this road map. Wisely navigating these changes will likely uncover opportunities for those planning responsively. Research from the University of New South Wales warns that speeding up the planning process may have unintended consequences. Property developers and architects have an important role in ensuring the projects enabled by these changes provide high-quality housing that will contribute to equity, sustainability and livability.
Sources: Victoria’s Housing Statement, University of New South Wales: Planning laws protect people. A poorly regulated rush to boost housing supply will cost us all, Australian Institute of Health and Welfare