𝘛𝘩𝘦 𝘣𝘪𝘨𝘨𝘦𝘴𝘵 𝘨𝘳𝘦𝘦𝘯𝘧𝘪𝘦𝘭𝘥 𝘭𝘢𝘯𝘥 𝘳𝘦𝘭𝘦𝘢𝘴𝘦 𝘪𝘯 𝘩𝘪𝘴𝘵𝘰𝘳𝘺 𝘵𝘰 𝘴𝘰𝘭𝘷𝘦 𝘝𝘪𝘤𝘵𝘰𝘳𝘪𝘢'𝘴 #housingcrisis?
The Victorian Government is set to announce the new work program for the Victorian Planning Authority (VPA) which will eventually lead to new a swathe of new #greenfield land releases.
✅This is big win, and something UDIA Victoria and developers industry has called for over an extended period.
🗺️The precursor to releasing greenfield land is a planning device known as a 𝘗𝘳𝘦𝘤𝘪𝘯𝘤𝘵 𝘚𝘵𝘳𝘶𝘤𝘵𝘶𝘳𝘦 𝘗𝘭𝘢𝘯 (#PSP). Areas with the Urban Growth Zone of Melbourne, even if identified for development, cannot actually be developed without an approved PSP in place - a job the VPA is responsible for.
Over the last four years 𝗷𝘂𝘀𝘁 𝗼𝗻𝗲, 𝘀𝗼𝗹𝗶𝘁𝗮𝗿𝘆 PSP has been finalised, with the VPA refocusing its work on activity centres around Melbourne instead. The Minister for Planning has also sat on and not approved several PSPs for an extended period.
⌛Today's announcement likely only really makes up for lost time, if that.
(Meanwhile, I can imagine the purists at the Department of Transport and Planning wincing at the idea that the politics of housing supply are overriding their utopian ideal that people should only grow "up not out" and live in medium-rise activity centres in established Melbourne.)
👍This is a very positive move, but it's too early to celebrate on the land release side. The PSP is a critical step in the journey of delivering new housing, but developers still need planning permits, infrastructure agreements (and delivery) and swathes of other approvals which mean PSPs that are approved soon will still take 3+ years from completion to get moving.
And that assumes the various external authorities are put on notice to actually deliver their end of the bargain.
💰The other sleeper issue is 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀. Given yesterday's messaging about developers covering all infrastructure costs, and the (incorrect) perception that greenfields cost more than established areas to develop, expect Infrastructure Contribution Plans for these areas, plus design, density and affordable housing requirements, to be so eyewateringly high that new areas will be prevented from being feasible for a long time. Look at the recent Creamery Road ICP of $1.6m/ha for example. 𝗪𝗮𝘁𝗰𝗵 𝘁𝗵𝗶𝘀 𝘀𝗽𝗮𝗰𝗲.
So we now have:
• Activity centre apartments (which are mostly not-feasible)
• Greenfield releases (which will be made too expensive)
🤔The obvious gap that remains is unlocking larger land parcels in middle-ring suburbs for townhouse development. You know, just the most feasible, most desirable for consumers and least costly development for government.
#housingsupply #housingreform #planningreform #announcementweek
Carly Douglas
Shannon Deery
Assessment and Awards Officer
2moThis is good news! Building on brownfield sites is a big step towards addressing the housing shortage while promoting sustainable developments.