Following the housing-statement from last year, where we saw the announcement of initiatives such as small second dwellings, the government has made further commitments to easing the housing crisis we face in Victoria.  

A key takeaway from recent announcements is the government’s commitment to monitoring and reporting on the progress of these initiatives. This data-driven approach will allow them to adapt and refine their strategy, based on the industry’s capacity. These frameworks will then be evaluated at regular intervals, ensuring actual change is achieved, not just policy declarations.  

Timelines and intervals for infill housing 

There’s been an announcement that will largely impact infill development, streamlining dual occupancies. In April next year this will be determined further. At this stage, it looks like it will either be no permit required for some kinds of infill development, or a streamlined process similar to VicSmart.  

We believe that the changes will streamline approval processes and de-risk many projects. 

The processes to design proposals will remain – so anyone looking to develop can confidently commence knowing there is a likelihood of a smoother path than has been historically the case. 

Greenfield development: Long-term planning and infrastructure solutions  

The 10-year plan for greenfields provides a much-needed framework for developers. The focus on 27 new Precinct Structure Plans (PSPs) with clear timeframes offers greater certainty for land acquisition and project planning.  

This initiative aligns with the government’s target of 30% of new homes, or 180,000 homes, to be delivered in greenfield areas within the next decade.  

This plan includes updating PSPs to be contemporary – some existing PSPs were completed a decade ago now but have not been fully developed. Under this plan, there is intent to revise them to ensure adequate planned infrastructure such as transport, school and community facilities exists to support new communities.  

This is a much needed policy commitment for the outer suburbs of Melbourne, following only one PSP being finalised in the past 4 years.  

These clear timeframes which are being implemented with PSPs represents good commitment from the Victorian Government, giving more certainty to developers, the industry, while also setting up a good pipeline.  

Opportunities for developers  

This reform package presents significant opportunities for developers. Strategically acquiring land within designated areas will allow them to build long-term pipelines and contribute to the creation of new, considered and integrated communities. Aligning projects with government priorities like sustainable development and affordable housing will ensure optimal success.  

Roadblocks for developers 

Setting targets for PSPs is not new – however, previous targets have been complex and difficult to implement or proceed with due to the wide range of required infrastructure and approvals being the responsibility of a diverse range of organisations.  

Navigating this new landscape will require careful attention to government timelines, infrastructure integration and the evolving planning framework. Developers must also factor in things such as windfall gains taxes, cultural heritage and environmental considerations which can all negatively impact a project’s feasibility or delivery.  

Inner-city stamp duty boost 

The immediate introduction of extension of off-the-plan stamp duty concessions is a positive step for buyers in established inner-city suburbs.  

This concession for apartments, units and townhouses purchased off-the-plan should improve project feasibility, which has been hindered for years by policy changes and construction costs.  

Focus on infill development 

While details are still emerging, the government’s announcement regarding streamlining dual occupancy approvals is promising. A streamlined process, like VicSmart, could significantly impact infill development and contribute to increasing housing supply.  

Looking ahead 

The state government have advised that they intend to release ‘Plan for Victoria’ before the end of this year. Together with the rewrite of the Planning & Environment Act to be released next year, we expect to see substantial change to the regulations through 2025 to facilitate all initiatives we’ve covered. Millar Merrigan believes this comprehensive approach will lead to positive change, although it is yet to be seen how it can actually translate into actionable and meaningful change for easing Victoria’s housing crisis.  

These recent initiatives offer a promising path towards a more sustainable housing market in Victoria. Millar Merrigan remains committed to working with developers and stakeholders to navigate this evolving landscape to deliver positive outcomes for Victorians.  

If you are interested in undertaking a land development project, get in contact with our team today.