Need for more greenfield sites as Victoria faces worst housing crisis

A powerful coalition of housing, development and construction bodies has spelled out what must happen, and soon, to address Victoria’s spiralling accommodation crisis.

Victoria faces its “worst housing crisis in the state’s history” as industry groups warn that the impact of plummeting building approvals and stalled outer suburban planning are biting.

A powerful coalition of housing, development and construction bodies says more than 50,000 homes are needed across greater Melbourne, urging the government not to narrow its focus too sharply on middle suburbs when it redraws the state’s planning rules.

It comes as developers complain about a lack of action on state-controlled precinct structure plans, which guide housing choices in growth or “greenfield” areas as well as urban renewal zones, and which have slowed to a crawl while the government prepares a new housing policy.

The government is preparing to release its Housing Statement as early as this month and is expected to take some planning controls away from councils, but is still considering other changes to streamline systems and boost supply.

Developers are complaining about a lack of action on state-controlled precinct structure plans, which guide housing choices in growth or “greenfield” areas. Picture: David Crosling

The HIA, Master Builders, Property Council and UDIA will on Friday join together to warn of major problems in Victoria’s planning sector that must be addressed urgently.

Data from the group shows that a 37 per cent drop in new home sales, a 29 per cent drop in loans, and a 16 per cent fall in building approvals is causing a perfect storm in growth areas — which they say is where many people want to move.

They say shortages are now biting and described the current situation as “the worst housing crisis in the state’s history”.

“The Victorian Government needs to make sure that the housing statement allows the home building industry to build the homes that people want, not the homes that the government believes they should have,” it says.
The group says people want choice in terms of locations and the type of housing they wish to live in.

New public housing in Prahran — but more is needed. Picture: David Crosling

The state Opposition has also issued a call for action, including to lower taxes holding back the industry, and for new incentives to get investors to provide properties as long-term rentals.

They say planning approvals in VCAT must be sped up, and that land for residential lots in metropolitan Melbourne and regional Victoria must be unlocked.

It also calls for incentives for investors who make their properties available on the long-term rental market to give tenants greater security.

Opposition home ownership and housing affordability spokeswoman, Jess Wilson, said the opposition plan outlines “a clear pathway to more supply, lower prices and greater opportunities to fulfil dreams of homeownership”.

Opposition planning spokesman, David Hodgett, said Victoria “needs a planning system that grows the whole state in a sustainable way and protects the voice of residents in local planning processes”.