Victorian Premier Jacinta Allan announces review into land subdivisions

One state wants to make it easier to divide up blocks of land in a bid to boost housing supply by “unlocking land in people’s backyards”.

Victoria will review its land subdivision regulations to boost housing supply and give younger Australians a better shot at home ownership.

Premier Jacinta Allan, speaking at the Melbourne Press Club on Thursday, said subdivisions took too long within the current planning scheme and reform could transform the state into the country’s “townhouse capital”.

“My Government will make it easier than ever to build a second house on your block,” she said.

“Not a granny flat, a house. There are live options available to us.

“We’re going to bring together the experts to tell us which is best.

“It’s not a review to tell us whether we should do something, it’s to tell us how to get it done.”

The review will examine how the state’s planning and building schemes can be streamlined to add a second home, build two new homes, or subdivide a block into two lots.

Victorian Premier Jacinta Allan said her government would reform planning schemes to make the state Australia’s ‘townhouse capital’. Picture: NewsWire / David Beach

“When we get the answers back in early 2025, we’ll have a plan to make Victoria the townhouse capital,” she said.

“That gives owners on big blocks an opportunity. That gives young Victorians an opportunity.”

In a statement released after the address, Ms Allan said the plan “just makes sense.”

“If you’ve got land you don’t need – we’ll make it easier for you to subdivide it and sell it, putting money back in your pocket and giving another Victorian the chance to buy their own home,” she said.

“By unlocking land in people’s backyards – we’ll unlock even more new homes for young families in our established suburbs.”

Possible reform options include faster 10-day subdivisions, down from about 60 days at present, criteria-based planning permit exemptions, or scrapping requirements for a planning permit.

“In the 80s, you were allowed to build two dwellings, two houses, on your lot without a planning permit,” Ms Allan said.

“There were rules, certain height, certain setback, and so on, but it was a right enshrined in law.

“So long as you met the criteria, you could confidently build a second home on your property and add to the housing stock in this state.

“Jeff Kennett removed that right in 1993 and today, it’s still a nightmare to try and subdivide.

“Even if you’re building something very modest, like a townhouse.

“Something that has no impact on residential character other than adding more faces and friendly neighbours into a community. It’s too hard.

“What’s the most frustrating thing about that? Townhouses are exactly the kind of homes we need to build.

“The suburban townhouse is uniquely Australian and it’s a top choice for people in their 30s trying to buy a home with a few bedrooms and a backyard, and a carport – not too far out.

“It’s the achievable dream for the modern millennial.”

The review follows a 2023 change to regulations permitting homeowners to build small second homes, such as granny flats, without a planning permit.

It also follows a sweep of other initiatives announced in the past few days all geared around boosting housing stock.

“We know there’s only one way out of the housing crisis: we need to build our way out,” Ms Allan said.

Housing demand far outstrips supply, leading the persistent price rises. Picture: NewsWire / David Crosling

“On Sunday, I announced an increase in homes and height at 50 train stations, to deliver more affordable options in the suburbs.

“On Monday, I announced tax cuts to slash the upfront costs of apartments, units and townhouses for anyone buying off-the-plan.”

The government is also pushing what it calls “a simpler system where property developers help pay for local transport, schools and parks in all suburbs”.

It has also approved new greenfield housing sites and a new building watchdog for “buyer piece of mind”.

State government across Australia are desperate to build more homes as demand for housing continues to outstrip supply, leading to drastic and relentless price increases that have shut-out most middle and lower income Australians from home ownership.

In the past 12 months, Victoria completed 60,000 new homes, according to data from the ABS.