Draft statewide housing targets for Victoria – More than 2 million new homes by 2051

Last week, the Victorian Government released their draft statewide housing targets.

In an ambitious target, 2,001,000 additional dwellings are proposed to be constructed between now and 2051 across Metropolitan Melbourne – being almost double the number of existing dwellings currently constructed in Metropolitan Melbourne.

The Government wants local councils to ‘unlock space for more homes by proposing changes to local planning rules’, with the intention of giving developers ‘the confidence they need to get on and build’.

Once finalised, the housing targets will be an important element of the new Plan for Victoria.

The Metropolitan Melbourne targets, broken down by local government areas (LGAs) are listed in the table below:

While the draft housing targets are a welcome announcement for the property development industry, there is no clarity on how these targets will actually be met to ensure that the housing stock is constructed within these timeframes or the preferred typology and siting of the dwellings.

There is no detail on:

• How the LGA targets will actually be met? For example:
  • Will there be a move towards ‘code assessable’ developments and other forms of accelerated approval pathways for projects that meet relevant design standards?
  • Within each LGA will there be ‘go-go’ areas for this additional housing, by reference to land mapping, so that developers and the community have certainty about future change expectations for an area?
  • What are the minimum density and height targets to be achieved in the ‘go-go’ areas for each LGA (being a mix of minimum lots per hectare for greenfield development and preferred building heights and envelopes for high-rise development)?
  • Will there be a central responsible authority for ‘housing projects’, so that there is consistency in decision making and approval timeframes?
• What will the process be for monitoring and transparent reporting of progress against LGA targets?
• What are the consequences for councils if LGA targets are not met?

To have practical and legal effect, the above matters should be addressed as a part of the new Plan for Victoria and Planning and Environment Act reforms.

Additionally, given that planning is only one lever that is currently impacting the development industry in what is currently a very challenging environment, it is critical that the Government consult with the property industry to identify the other policy settings will need to be in place to enable the delivery of the housing stock at pace. For example, the reintroduction of off-the-plan stamp duty concessions, to encourage first home buyers and downsizers to purchase apartments, removal of Windfall Gain Tax (or at least a temporary hold) and the existing large parcels of Government owned land should be unlocked and repurposed.

Gadens Real Estate & Construction Partners are currently working with the Property Council of Australia and Urban Development Institute of Australia on industry submissions in response to these draft housing targets, which will feed into industry submissions on the Plan for Victoria. If you have any project specific feedback you would like to be considered for these submissions (on a confidential basis), please reach out to Andrea Towson (Chair PCA Planning & Infill Committee, Vic) or Brihony Boan (UDIA Greenfield Committee Member) of Gadens.

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Authored by:
Andrea Towson, Partner
Brihony Boan, Partner
Anthony Tchakerian, Lawyer