Victoria’s Opposition has challenged the viability of the government’s activity centre housing program, citing new research it says shows most proposed homes may not be commercially feasible to build.
Liberal MP for Caulfield David Southwick said analysis by the Grattan Institute found that of the 600,000 homes planned across activity centres, around 18 per cent, or about 110,000, are economically feasible.
The comments follow the government’s release of draft maps for 23 remaining Train and Tram Zone Activity Centres, part of a broader plan to increase housing near public transport, jobs and services.
Mr Southwick, the Shadow Minister for Planning, said the program does not address broader cost pressures affecting development. “Labor’s activity centre plan fails to address the underlying cost pressures that are choking supply,” he said.
He said high taxes and charges were contributing to the problem. “If five out of six proposed homes will not be built because the costs are too high, it’s clear Labor’s latest housing plan is destined to fail,” he said.
The Opposition argues Victoria has the highest property tax burden in the country, pointing to rising land tax, stamp duty and developer charges as factors discouraging investment and prompting some builders to operate interstate.
Mr Southwick said the consequences would be felt by buyers and renters. “Fewer homes means higher prices, higher rents and less housing choice. Labor’s mismanagement is denying Victorians the best opportunity to find an affordable and secure place to call home,” he said.
He called for changes to improve feasibility and support infrastructure. “We need a balanced plan that makes projects stack up, delivers infrastructure and supports communities. Forcing higher density into established suburbs without addressing viability will not solve the housing crisis.”
The government has said its activity centre reforms aim to deliver up to 300,000 homes by 2051, with detailed consultation under way on proposed heights and boundaries in suburbs across Melbourne.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
