The Victorian Labor government under Premier Jacinta Allan has announced a sweeping set of reforms aimed at tackling the state’s housing crisis head-on. From greenfield housing to apartments, the policies promise major changes for homebuyers, renters, and the property industry.
More Homes on More Land: Unlocking the Suburbs
A centerpiece of the reforms is the government’s 10-year plan to open up vast tracts of land on Melbourne’s outskirts for 180,000 new homes. This will include the largest-ever release of greenfield land, the unzoned plots slated for future suburbia.
The move aims to give developers long-term certainty so they can invest in building family-friendly houses. New communities will spring up in growth areas like the southeast, north and west. Coordinating agencies will deliver infrastructure like roads and public transport to support the new residents.
As leading economist Cameron Kusher explains, many homebuyers still prefer a house and land package over an apartment. Greenfield sites offer affordability too. Supplying more of this traditional Aussie housing is an important plank in the government’s strategy.
Tougher Building Watchdog to Lift Standards
Shoddy construction has become a major issue, eroding public confidence. To crack down on defects, Victoria is establishing a new regulator called the Building and Plumbing Commission. It will oversee the entire lifecycle of projects.
The watchdog gains sharper teeth. It can order builders to rectify problems even after owners move in, not just beforehand. It will scrutinize developers more closely before signing off on occupancy certificates. Sales of apartments with serious flaws can be halted.
By centralizing regulation, insurance and dispute resolution under one roof, the Commission aims to protect buyers and restore integrity to the industry. Tougher policing should lift standards.
Slashing Stamp Duty to Reinvigorate Apartments
Apartment living has lost its appeal recently in Victoria. To reinvigorate the market, the government is temporarily scrapping stamp duty for off-the-plan purchases. The concession applies for 12 months from late 2024.
All homebuyers can benefit, including first timers and investors. Previously there were price caps and other limits. By removing stamp duty, the upfront cost of buying falls dramatically.
However, as Cameron Kusher notes, apartments still cost more to build than established units sell for. The construction industry faces rising expenses. The stamp duty incentive alone may not be enough to spur significant new development.
Opening the Door to Townhouses
Another key reform is streamlining subdivision approvals. This makes it easier to put townhouses or freestanding homes onto a block. The aim is to enable ‘gentle density’ of this kind in established suburbs, providing more housing choice.
Under the faster process, eligible projects won’t need planning permits at all. For others, approval times will shrink from months to days. The government wants to cut red tape but maintain quality.
Kusher sees townhouses as a ‘goldilocks option’ – more affordable than detached houses but still lower-rise and semi-detached like Australians prefer. Easing restrictions sensibly could boost supply where people want to live.
Controversial Plans to Go Upwards
Not all the reforms have won praise. The government ruffled feathers by expanding its high-density housing scheme. New apartment towers will be allowed in 50 ‘activity centres’, mainly around railway lines.
Areas like Brighton, Hampton and Toorak are impacted. Critics argue the leafy character of these suburbs will be ruined. But the government wants 300,000 extra dwellings near transit hubs.
Masterplanning is needed to get higher-density right, Kusher advises. Some locations suit it better than others. Done well, increasing height limits in the right places connects residents to services while protecting neighborhood amenity.
Rewarding Good Design
Many worry higher density means unattractive ‘slab’ developments. In response, Victoria is encouraging better design through a new fast-track planning process.
Architecturally appealing projects with sustainability features will be approved faster. The public can even nominate favorite local buildings to inform standards. Demonstration homes will showcase excellence.
The goal is to inspire innovative, high-quality, affordable housing. With careful design guidance, higher density doesn’t have to mean ‘cookie cutter’ concrete jungles.
A Bold Vision to Tackle the Housing Crunch
Victoria has embarked on a bold reform agenda under Premier Allan to boost housing supply and choice. The policies are wide-ranging and ambitious. Not all will prove uncontroversial or straightforward to implement.
But with visionary thinking and careful execution, the government’s plan can make inroads on affordability and accessibility. As Kusher notes, getting more good-quality housing in the right locations is key. These reforms point Victoria in that direction.