Despite the sell 💫 none of this is particularly new. We’ve had strategic planning documents since Melbourne 2030 (2001) with fancy names for housing around key transport nodes and precincts – TODs, transit cities, activity centres etc.
Virtually all 60 locations now announced have existing activity centre style controls which have allowed reasonable amounts of density already.
✅The changes announced will increase theoretical future capacity. And they will improve the planning process in these areas with reduced appeal rights if you tick boxes.
✅I conceptually support the notion of these activity centres and improving planning system performance and certainly of reducing local council interference.
But policy makers and government planners fail to accept the reality that the lack of denser housing in most of these areas has been predominantly due to low #demand, or lack of #feasibliity, not a lack of zoned land. Nothing announced will materially change this.
In truth, Victorian Government is acting far too late to make activity centres a reality in the short–mid term.
It fought denser development during a period when developers were building more apartments than ever. The incorrect perception that they were making too much money, or views on product typology, or who was buying them, meant attacking the industry for doing it’s job became fair game.
Add a litany of of policy changes which resulted in building apartments no longer making sense for most developers:
• BADs • Garden Area Rules • Permit levies • Social housing taxes • Land taxes • Investor penalties • Stamp duty changes • Sunset clause changes • Developer contributions
Instead of maximising the golden era of apartment #feasibility and demand, the industry was virtually shut down. Post-pandemic construction cost inflation from infrastructure spending put a nail in that coffin.
These announcements are designed to create the impression that the State Government has a handle on the housing crisis.
It’s suggesting to impressionable young people that these changes will be the solution to delivering more affordable homes for them and their families.
It does not and they will not.
🤔For all the talk of no more “status quo“, this is exactly what it is. It‘s a continued misallocation of resource based on wishful thinking
Think I’m wrong? Tell me why in the comments.