Victoria’s housing market faces a clash with its planning policies as the state government rolls out a new phase of high-rise development in suburban Melbourne. The Allan government’s proposal to relax planning laws across ten suburbs could allow developers to exceed height restrictions in exchange for including affordable housing or open spaces. This potential reshaping of skylines in areas such as Camberwell, Preston and Epping has sparked mixed reactions from residents and politicians alike.
The move, aimed at facilitating the construction of 60,000 high- and medium-density homes, supports an ambitious goal of 1.8 million homes by 2051. However, it hasn’t gone without criticism. Opposition Leader John Pesutto has slammed the plan, labelling it a blanket approach to densification that ignores local input. Pesutto argues that fast-tracking approval processes for 20-storey towers in key suburbs strips local communities of their right to participate in planning decisions.
Joining the chorus of dissent, more than 400 residents gathered in Melbourne’s eastern suburbs—Camberwell, Hawthorn, and Kew—to voice concerns about the state’s perceived takeover of local planning powers. Boroondara Council, which governs these areas, raised alarm over heritage protections. With 48% of the council area covered by a heritage overlay, there is growing concern that such protections could be disregarded to meet housing targets, placing the balance between development and preservation under scrutiny.
Shadow Minister for Planning, James Newbury, has echoed these concerns, accusing the government of “ripping away community voices.” He emphasised that the issue lies not in increasing housing density but in how the state government is pursuing this change. According to Newbury, while responsible redevelopment is welcome, it shouldn’t come at the cost of heritage areas or occur without proper consultation with local communities.
At the same time, demand for housing continues to rise, particularly in Melbourne’s designated activity centres. The state government’s introduction of a “value capture framework” aims to meet this demand. The framework encourages developers to provide public benefits such as affordable housing and open spaces in exchange for surpassing typical building restrictions. Despite these incentives, many residents and local councils find the trade-offs unpalatable. The relaxation of height limits, particularly in heritage-listed areas, is seen as a risk to the character of established communities.
From the opposition’s perspective, the lack of community consultation is a major concern. Pesutto and Newbury argue that residents deserve a say in planning decisions that will shape the future of their neighbourhoods. They criticise the government for taking a “one-size-fits-all” approach that doesn’t consider the unique attributes of individual suburbs.
Proponents of the plan argue that Melbourne’s growing population and rising property prices make high-density housing essential. The government’s reforms are intended to tackle the housing shortage without further driving up prices, particularly in outer suburbs. By balancing development with liveability, the government hopes to foster sustainable growth.
As Victoria aims to meet its target of 1.8 million homes by 2051, the stakes are high. The government’s leniency in planning could help address the housing crisis, but questions remain about the cost to the identity and heritage of Melbourne’s suburbs. For now, the debate rages on, with both sides standing firm.
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