The Napthine Government has unveiled its final Plan Melbourne strategy, which aims to deliver 1,570,000 new homes across the city by 2051.

That’s 524,000 more homes than the government forecasted in its draft strategy last year and follows Master Builders’ work that showed the draft plan insufficiently catered for population growth. 

The government’s aim is for new dwellings to be divided almost equally between detached houses, apartments and townhouses/units in an attempt to provide choices and lifestyle opportunities across the city.



Source: Plan Melbourne


“This is a comprehensive plan for Melbourne that caters for a projected population of 7.7 million people by 2051 and provides a solid foundation to meet these challenges,” said Planning Minister Matthew Guy.

“For the first time there is a dedicated authority, the Metropolitan Planning Authority, to implement Plan Melbourne and together with local government we now have the roadmap needed to forge a productive way forward for our great city.”

Where will the new homes be?

Despite the large focus on catering for more homes in outer suburban growth corridors, Plan Melbourneshifts the focus for future homes to be built largely in established areas.

In fact, the government’s own strategy predicts fewer than four in every 10 new homes built between now and 2051 will be in those growth areas.

Instead, the government’s priority for new homes in the future will be around the city’s centre and throughout existing suburbs.


Source: Plan Melbourne

A key factor in the success of this strategy will be bridging the costs gap between Greenfield and infill developments.

This is an issue previously identified as needing action by a bipartisan State Parliament committee and an independent review is needed to help ensure new projects in existing suburbs can be delivered without builders and construction companies facing skyrocketing bills.

How will this be achieved though?

The devil is always in the detail and in this case, the provision of all these new homes will largely be dependent on Melbourne’s troublesome councils all playing their part.

The government has set a fixed urban growth boundary and estimated growth rates for regions across the city, but perhaps an enforceable target for each region should be set instead.

Source: Plan Melbourne


As Master Builders Chief Executive Radley de Silva said, “We need to make sure councils provide sufficient opportunities for building more homes and that regional growth targets are enforced.

“Councils that fail to deliver on growth targets should be sent back to the drawing board.”

The Planning Minister has already referred a number of councils’ proposed zones changes to an advisory committee to help ensure population growth can be adequately secured. This is a move strongly welcomed by Master Builders and we hope recalcitrant councils continue to be scrutinised throughout this process.

Delivering enough infrastructure for more people

A comprehensive package of infrastructure projects will also be delivered, which will boost construction activity and help deliver more transport options across the community. 

This will be combined with initiatives in Plan Melbourne to deliver a range of urban renewal projects.

“Melburnians are being asked to embrace population growth and it’s important this strategy helps deliver the infrastructure services they need now and in the years to come,” said Mr de Silva.

“This strategy will help deliver vital major projects, such as East West Link and Melbourne Rail Link, to ensure out city has a world-class multi-modal transport network.

“It will also help unlock the substantial potential in our next communities surrounding the central city, such as Fishermans Bend, E-Gate in West Melbourne and the Arden-Macaulay precinct around North Melbourne.

“Importantly, it will also help rejuvenate existing communities around underutilised rail corridors such as North Richmond to Victoria Park, between Brunswick and Batman station and along parts of the Oakleigh to Dandenong rail corridor.”

What about making planning a bit simpler?

It’s the big question for most builders trying to deal with Victoria’s planning rules.

Master Builders has previously called for a range of measures to reduce delays and remove uncertainty from the planning system, which includes providing greater opportunities for code assessed and as-of-right planning processes.

We hope the MPA will get on with the job of finding ways to tackle these issues, especially considering it is to be funded through a new levy imposed on construction projects worth over $1 million.

The levy will be charged to approximately 6 per cent of all planning permits and is expected to raise $17 million per annum from 1 July 2015.

“Developers face millions in land holding costs every week across Victoria. A fully funded MPA will reduce overall development costs over time by bringing land to market earlier,” said Planning Minister Matthew Guy.

The levy will be at a rate of $1.30 for each $1000 of the estimated development cost and will apply in addition to the permit application fee, which will still be paid to the local council as currently occurs.

“Complying with our overly-complex land use planning costs up to $875 million per annum, which is driving up the cost of new homes, schools and workplaces across our suburbs,” Mr de Silva said.

“The new Metropolitan Planning Authority (MPA) has been tasked with identifying opportunities to streamline and reform planning approvals and our industry needs this work to be done urgently.”

Find out more about planning zone changes

Many members have asked about the impacts of new planning zones, which include creating three new residential zones, changing height limits and altering some subdivision rules. These topics and more will be covered in a special seminar on planning zones being held next month.

The seminar will feature special guest speaker Ashley Thompson from Clause:1 Planning and will deal with the new residential, commercial, industrial and rural zones. Members will also have the opportunity to have their questions about the new zones answered.

Date: Thursday, 26 June 2014

Time: 5.30pm

Venue: Master Builders’ Head Office
332 Albert Street, East Melbourne

Cost: $30 per person – member rate
$100 per person – non-member rate

Find out more about the seminar or book today.

External Links

• Melbourne’s mega-city needs new boundary (The Age)

• Updated Melbourne housing plan fails to appease experts (The Australian Financial Review)