Victorian Planning Shakeup Targets Faster Greenfield Growth

A planning organisation reshuffle and the release of planning guidance for several greenfield precincts are slated for early 2025, according to the Victorian Government. The state announced today [October 23] that the Victorian Planning Authority [VPA] will be integrated with the Victorian Department of Transport and Planning from January 1, 2025. It also announced the scheduled release of three Precinct Structure Plans (PSP) for three key precincts: Northern Freight Precinct (City of Whittlesea), Cardinia Creek South Part 2 (City of Cardinia) and Kororoit Part 2 (City of Melton). These PSPs will be released in late 2024 and 2025 and will guide suitable development for these precincts. But industry has suggested it is not enough to address the urgent housing supply shortages and remove the roadblocks hindering greenfield development. Resimax Group managing director Ozzie Kheir said it was a conservative plan that “might all be too late anyway”. “We remain hopeful that the Government will tackle the planning challenges that hinder developers from releasing land post-precinct structure plan approval,” Kheir said. What are Precinct Structure Plans? PSPs provide land use and infrastructure guidance for each precinct for developers and community members, designating areas for different uses and determining heritage, urban design, character and other aspects of developing each precinct. Since 2006, the VPA has been creating the PSPs for a long list of planned precincts within Melbourne’s growth corridors, with the process reformed in 2020 to include policy directions such as 20-minute neighbourhoods and the UN’s Sustainable Development Goals. Some of those PSPs have been completed and approved, allowing development to go ahead with more certainty, some are being prepared and others have yet to be started or worked on. As reported in other media, there have been several instances of precincts such as Beveridge North West (more than 16,000 homes) and Clyde South (more than 13,000 homes) being delayed for years once the PSPs are submitted to the planning minister and the planning department for approval. The Victorian Government has now announced that 27 new greenfield sites will be unlocked as part of its new 10-year plan to move faster on the VPA’s long list of planned precincts. Those plans state that 22 PSPs will be finalised by 2034-35 in greater Melbourne with existing but not fully developed precinct structure plans to be reviewed to see if more housing can be included. ▲ The Victorian Planning Authority ’ s list of precincts as of March 2021. There are three PSP groups in the plan termed ‘horizons’. Horizon 1 lists precincts that will have PSPs prepared in 2024-25 with completion scheduled by 2028. The precincts included in this group are Beveridge North West, Casey Fields South, Cardinia Creek South (Part 2), Croskell, Devon Meadows, Greenvale North (Part 2), Kororoit (Part 2), Melton East, Northern Freight and Officer South. As mentioned in the announcement, Northern Freight, Kororoit (Part 2) and Cardinia Creek South (Part 2) will be the first to have their PSPs released either in late 2024 or 2025. Horizon 2 lists precincts that will have their PSPs started on between 2025 to 2029, with completion by 2033. The precincts in this group include: Beveridge South West, Cardinia Road (Part 2), Clyde South, Derrimut Fields, Merrifield North, Oakbank, Pakenham West, Rockbank South, Wallan East (Part 1 and Part 2), Wallan South and Warrawee. Horizon 3 includes precincts that will have their PSPs started between 2029 to 2034. The precincts in this group include: Aviators Field, Bayview, Bulmans Road, Beveridge North East, Chartwell East, Cooper Street West, Mambourin East, Melton West, Sunbury North, Sunbury South, Warrensbrook and Werribee Junction. Future PSPs will include staging with the 10-year-plan aiming for PSPs to be completed within three to four years of starting and to reduce that timeframe by a third. There will also be new planning tools and delivery pathways explored to reduce timeframes. The VPA will still be responsible for creating and delivering the PSPs. Other components of the plan An EoI process will be announced this week for VicTrack-owned land near Oakleigh and Footscray train stations for nearly 240 homes. The first round of the Small Sites program has proceeded to a Request for Proposal [RFP] process with 10 more sites being prepared for the second round. Proposals are now due by mid-2025 for four consortiums that have been shortlisted through the RFP process for the Arden precinct. A dedicated concierge service will be set up to help councils and developers fix issues blocking land from being developed. The entire 10-year-plan is intended to meet the state’s long-held target of 70 per cent new homes in infill development and 30 per cent new homes in greenfield areas in Greater Melbourne. There are now also seven greenfield precincts in metropolitan Melbourne included in the VPA’s workplan. ▲ VicTrack-owned land around Footscray station will be unlocked for homes. The industry ’ s reaction The Property Council of Australia has welcomed news of the plan but also said more detail was needed. “Today’s 10-year greenfield plan provides a target for delivery but fails to answer key questions about how delivery will be sped up, including how current barriers such as drainage and other infrastructure delays, or inconsistent cultural heritage requirements, will be adequately addressed,” the industry group said in a statement. “There’s also little information about how sites have been selected and prioritised. “The plan also needs to provide more information on the pathway to solving Victoria ’ s long-standing industrial-land shortages.” Resimax’s Ozzie Kheir agreed. “Resimax Group welcomes the Victorian Government’s announcement regarding the 10-year housing program,” Kheir said. “While it is encouraging to see set timeframes, we believe these timelines are too broad and do not address the urgent need for supply to meet the Government’s housing targets effectively. “Currently, the process to obtain planning permits and approvals from state government agencies can take up to three years, exacerbating housing costs in Melbourne due to inefficiencies and under-resourcing.” Kheir also said that there were challenges even after a PSP was approved. “The affordable housing crisis and supply purely sits in the hands of state government ’ s ability to fast-track approvals,” Kheir said. “Each year this process drags only makes things very much worse. “It’s obvious that the Government have put forward a very conservative plan to deliver as they have done in the past. “Unfortunately, if they meet these timeframes it might all be too late anyway.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. 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