Melbourne’s inner and middle suburbs are set for a planning reset as the Victorian Government moves to open up well-connected areas to more housing, with a focus on speeding up approvals and providing clearer rules for developers.
The changes centre on 25 train and tram precincts where housing supply has lagged over the past three decades, despite strong access to public transport, jobs, schools and services. The government argues that this mismatch has contributed to affordability pressures, particularly for younger residents trying to enter the market.
Under the updated controls, areas closest to key stations and tram corridors will allow taller buildings, generally ranging from six to 20 storeys depending on the location. Projects that meet the prescribed standards will be fast-tracked through a ‘deemed to comply’ pathway, removing the option for appeals at the Victorian Civil and Administrative Tribunal and reducing approval timelines.
Beyond these central pockets, surrounding neighbourhoods will see more modest development. Inner catchments will support buildings of up to four storeys, or six on larger sites, while outer areas will be limited to three storeys, or four where block size allows. The approach is designed to concentrate higher density near transport hubs while maintaining a lower-rise character further out.
The precincts span multiple rail lines and tram corridors. Along the Metro Tunnel corridor, suburbs such as Carnegie, Murrumbeena, Hughesdale and Oakleigh are included, alongside Middle Footscray, West Footscray and Tottenham in the west. The Glen Waverley line features stops including Tooronga, Darling and Glen Iris, while the Sandringham line covers areas such as North Brighton and Hampton. Additional zones extend across the Belgrave, Lilydale, Upfield and Hurstbridge lines, as well as tram corridors through Thornbury and Kew.
The government says the updated framework has been shaped by community input, with more than 12,500 submissions informing revisions to building heights, streetscape considerations and infrastructure planning. Consultation remains open on a further 23 precincts, with planning work continuing in parts of inner Melbourne and Yarra.
Forecasts tied to the policy suggest the changes could unlock capacity for more than 300,000 homes by 2051, although delivery will depend on market conditions, developer appetite and supporting infrastructure.
Premier Jacinta Allan framed the reforms as a response to long-standing constraints in established suburbs, arguing that better use of existing transport networks is essential to improving access to housing. Planning Minister Sonya Kilkenny pointed to the need to align new housing with areas that already offer strong public transport and services.
The opposition has taken a different view, signalling support for a return to earlier planning settings. Critics of the government’s approach have raised concerns about building heights, neighbourhood character and the pace of change, while some planning experts note that streamlined approvals may help reduce uncertainty but will need to be matched by investment in infrastructure such as schools, transport capacity and public space.
Housing analysts broadly agree that increasing supply in well-located areas is a necessary part of addressing affordability pressures, though they caution that planning reform alone is unlikely to resolve the issue. Construction costs, interest rates and broader economic conditions continue to shape what ultimately gets built.
The coming months are expected to test how the new rules translate into actual development activity, as industry and communities respond to a system that places greater emphasis on certainty and speed in some of Melbourne’s most established suburbs.
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