The Victorian government has launched the Unlocking Strategic Sites pathway, a new planning process designed to speed up the rezoning of underutilised land such as former industrial sites, golf courses, racetracks, and surplus university land.
Currently, rezoning land through councils can take two years or more. The government said the new approach could cut that timeframe “in half”.
Councils and developers are being invited to submit expressions of interest (EOIs) for eligible sites, which must meet strict criteria around size, location, scale, complexity, and delivery confidence. Successful applications will move through a streamlined assessment and amendment process aimed at unlocking new homes and job precincts more quickly.
The reform comes as the government faces growing pressure over its housing delivery record.
In 2023, Victoria committed to delivering 80,000 new homes annually for the next decade. But ABS data shows only 60,000 homes were delivered in 2024, leaving the state 20,000 homes short of target in just one year.
Projections show no major uptick on the horizon, with apartment supply expected to fall more than 20,000 dwellings short through to 2029.
Industry leaders have welcomed planning reform moves but warned they fall far short of what’s needed to address Victoria’s housing crisis.
“Victoria is growing at pace, and so is the housing crisis. We’re not just behind schedule, we’re off track,” said Property Council Victorian executive director Cath Evans (pictured) in a media release. “Melbourne’s population is projected to grow faster than New York City’s over the next ten years.
“We welcomed the Housing Statement as an important step forward. But the results haven’t followed. The 20,000-home shortfall in just one year is deeply concerning. Unless further action is taken now, that gap will only widen.”
Evans added that while the government has begun addressing planning red tape and referral authority delays, policy shifts have not yet translated into meaningful supply.
“Positive movement on planning reform isn’t enough on its own to translate planning documents into actual new homes for Victorians,” she said.
Evans criticised the state for prioritising revenue measures over investment attraction.
“Two years on, and there’s been more increased taxes announced on property owners in Victoria in that period than incentives and relief,” she said.
“We recently welcomed the removal of off-the-plan stamp duty exemptions for apartments, units, and townhouses, but this has not been enough to encourage significant change.
“The sector urgently needs tax relief. Cut the foreign investment taxes killing much needed investment into Victorian property, level the playing field with other states and introduce smart incentives to elevate buyer and investor confidence.”
Evans stressed that only a combined approach of tax reform and planning changes will give the property industry a realistic chance of meeting Victoria’s housing needs.
“Only this, combined with the ongoing removal of red tape from the planning system, can give the property industry the best possible chance of meeting that much needed housing target,” she said.
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