The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
Sponsored ContentPartner ContentWed 16 Apr 25

Victoria Shifts to Ambitious Pro-Development Agenda

In early March, the Victorian Government capped off an extraordinary week of housing announcements with the release of the much-anticipated strategic planning document, Plan for Victoria. 

The plan codifies what had become common knowledge in the Victorian development sector since the release of the Housing Statement in September 2023—that at the centre of the State Government’s reform agenda between now and the next election (November 2026) will be the planning system.

To this end, the plan—and the week of announcements leading up to it—signal a meaningful shift in planning policy towards an ambitious, pro-development agenda.

What remains to be seen is whether the welcome shift in rhetoric will be reflected in outcomes.

Ambition matched by accountability 


The plan reiterates the Government’s commitment to the construction of 2.24 million homes to 2051—an ambitious target that has been met with scepticism by some in the industry who question whether this is realistic given the Government is already struggling to hit the Housing Statement’s target of 80,000 homes a year.

The plan largely mimics the policy aims of Plan Melbourne 2017-2050 that it replaces, with a doubling-down of strategies such as encouraging urban infill and consolidation, reducing private car ownership and increasing the diversity of housing typologies available for Victorians.

Where the plan diverges from the Government’s previous statement is a commitment to managing sprawl in regional cities, which it claims threatens the viability of Victorian agriculture.

Encouragingly, the plan is underpinned by a strong commitment to accountability, with clear metrics for deliverables against which progress can be monitored.

Given the scale of the Government’s commitments, an outcome-based approach (as opposed to the opaque metrics of Plan Melbourne) is welcome. 

The ambitious—albeit reduced—targets for local government areas have been measured by reference to actual development potential (as opposed to the capacity of planning schemes in their current forms).

Whilst the details are yet to be made public, the Government has signalled its intention to remove planning powers from councils who consistently fail to meet their targets.

Roadblocks


While the plan represents a welcome set of actionable steps the Government can take to improve the outlook for Victoria’s development sector, a few notable exceptions have left major developers feeling short-changed.

Missing from the plan was any commitment to relieve the tax pressures hitting the development sector disproportionately hard, with the UDIA chief Linda Allison writing on LinkedIn that “getting the tax settings right will be essential to bringing forward industry’s ability to meet the ambitious targets set out in the plan”.

Property Council of Victoria executive director Cath Evans concurred that despite the encouraging changes in the plan, “without critical property tax reform, Victoria will struggle to attract the investment it needs to deliver future housing”.

The Property Council proposes land tax exemptions for high-density development and an extension of the Government’s proposed 12-month off-the-plan stamp duty concession.

The Productivity Commission’s recent report Housing construction productivity: Can we fix it? also highlights several major areas of reform not canvassed in the plan but necessary to the delivery of additional housing it proposes, such as building regulation review, occupational licensing reform and the promotion of Modern Methods of Construction.

These issues are compounded by shortages of workers and materials that have led to industry-wide cost escalations and builder collapse.

Without more state and federal government support to address these shortages—such as pushing out the delivery timeframes of public infrastructure projects and increasing skilled migration pathways for in-demand trades—these shortages threaten the capacity of the sector to meet the plan’s targets.

Accordingly, whilst the plan marks an important consolidation of State Government strategy in promoting more development, questions remain about the effectiveness of what’s been proposed without complementary changes to the tax regime and public support for the sector.

Planning & Property Partners remain ready to assist you navigate these changes, the details of which we are well across.  To learn more about what these reforms mean for you, please contact us through our website. 



The Urban Developer is proud to partner with Planning & Property Partners to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.

ResidentialVictoriaPlanningPartner
AUTHOR
Partner Content
More articles by this author
ADVERTISEMENT
TOP STORIES
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
Healthscope Hospital EDM
Exclusive

‘Once-in-a-Decade’ Opportunities Rise in Wake of Healthscope Collapse

Clare Burnett
7 Min
Exclusive

Parking Upsize Threatens Fatal Blow to Project Feasibility

Phil Bartsch
6 Min
One New Zealand Stadium BESIX Watpac
Exclusive

Rising to a Challenge: How BESIX Watpac Topped Australia’s Builders

Clare Burnett
7 Min
Exclusive

Rewards Outstrip Risk in SE Queensland Off-The-Plan Buys

Taryn Paris
7 Min
View All >
Aerial photo of St Mary's Intermodal Terminal in Western Sydney now sold by Pacific National to PGIM and Cadence.
Industrial

Cadence, PGIM Team Up for $145m Freight Rail Acquisition

Marisa Wikramanayake
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
Development

Melbourne Luna Park Revival Wins State Backing

Marisa Wikramanayake
The Victorian government has provided funding in the state budget to restore Luna Park’s unsafe, century-old Palace Buil…
LATEST
Aerial photo of St Mary's Intermodal Terminal in Western Sydney now sold by Pacific National to PGIM and Cadence.
Industrial

Cadence, PGIM Team Up for $145m Freight Rail Acquisition

Marisa Wikramanayake
2 Min
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
Development

Melbourne Luna Park Revival Wins State Backing

Marisa Wikramanayake
2 Min
Finance

Fast Funds, Real Help—Woodbridge Capital Delivers Both

Partner Content
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/plan-for-victoria-planning-and-property-partners