The Victorian Government’s 10-year plan for Melbourne’s greenfield development outlines a structured, phased approach to delivering both residential and employment precincts, aimed at addressing the city’s expanding population and growing demand for housing. 

This plan, which follows on from the government’s Housing Statement, will guide the development of 180,000 new homes through 27 PSPs (Precinct Structure Plans), segmented into three ‘Horizons’ with set timelines. While this move offers some clarity, it also raises key concerns around practical delivery. 

A number of PSPs located in areas with high demand have now been slated for long-term approval. These include the Clyde South PSP, the final major residential precinct in the Casey growth corridor, being scheduled under Horizon 2 with completion targeted between 2030-2033. If not expedited, delayed development here risks creating a housing shortage that could exacerbate affordability issues, underscoring the importance of having plans like these completed ahead of demand surges. Timely approval and rollout are crucial to maintaining affordability and meeting the area’s housing demand.

The plan also references several regional developments, including Shepparton South East, Bannockburn South East, and Ballarat North, though their timing remains uncertain. These regional projects have the potential to help redistribute population, however, without clear timelines, their role in the broader strategy remains speculative at best. 

The plan also promises to streamline PSP approval timeframes. However, specifics remain scarce. Persistent issues, ranging from regulatory delays to infrastructure backlogs and complex cultural heritage requirements, pose significant hurdles that need to be addressed to ensure efficient implementation. Ambiguity around the plan’s details means there is skepticism within the industry about the government’s ability to truly accelerate PSP approvals in a meaningful way.

Addressing these fundamental issues would not only benefit developers, but also ensure a smoother delivery of affordable housing across Melbourne’s greenfields. 

Despite the challenges and uncertainties, RPM welcomes the government’s commitment to providing a structured approach to Melbourne’s greenfield housing supply and we look forward to further clarifications on issues already raised by the industry. 

A proactive approach to industry feedback will significantly enhance the plan’s effectiveness, ensuring that Melbourne’s greenfields not only meet demand but do so in a timely, sustainable, and affordable manner 

This article references findings from our Q3 2024 Victoria Greenfield Market Report. Read the full report here.