Under-pressure Allan govt gives green light to new homes, jobs hub in Melbourne’s southeast

A new precinct in Melbourne’s southeast that will deliver 1600 new homes and 22,000 jobs has been given the green light as pressure mounts on the government from developers fed up with delays and massive land tax bills.

The Allan government has green-lit a new homes and jobs hub amid growing pressure from fed-up greenfield developers facing years-long delays and multimillion-dollar land tax bills.

As patience wears thin in the battle to build new homes in Melbourne’s outer suburbs, Planning Minister Sonya Kilkenny has pressed go on a new precinct in Melbourne’s southeast, and has opened consultation for a further three.

The Officer South (Employment) Precinct Structure Plan (PSP) will support 1600 new homes and 22,000 jobs.

Consultation will also begin for the Melton East, Devon Meadows, and Casey Fields South precincts, which will collectively deliver 16,500 new homes and 7370 jobs, along with new schools, sporting facilities, and community hubs.

The areas are part of the state government’s 10-year greenfields plan.

The areas are part of the state government’s 10-year greenfields plan, announced in October, which aims to deliver 180,000 new homes over the next decade in a bid to meet the government’s 70-30 target between inner and outer suburban Melbourne.

Ms Kilkenny said the precinct structure plans rollout was about delivering “real housing choice for Victorians”.

The progress update on what has been dubbed “Victoria’s longest-ever pipeline of new land for homes and backyards” comes after frustrated greenfield developers revealed they were facing years-long delays for approvals and soaring holding costs.

Minister for Planning Sonya Kilkenny. Picture: Aaron Francis

As revealed by the Herald Sun, plans for 45,000 potential homes have been put on the back burner for years as the government prepares to stack inner and middle ring suburbs with high-rise apartments.

Villawood Properties executive director Rory Costelloe said the government was raking in millions of dollars in land tax from developers as they awaited approvals from Ms Kilkenny, with the holding costs set to increase the cost of new homes.

“The new Housing Statement talks about fast-tracking in two to three years, but currently it’s been seven years for most PSPs,” he said.

“For every $100m spent on land, annual holding costs stack up, ie $2.65m that’s gone to the SRO for land tax plus say $5m in interest.

“Let’s say we are holding for 4 years, that’s over $30m in holding costs that could have been spent on infrastructure and getting houses on the market early.”

Villawood Properties executive director Rory Costelloe says the key to affordable homes is pumping out supply, not slapping developers with sky-high taxes to build them.

Mr Costelloe said the key to affordable homes was pumping out supply, not slapping developers with sky-high taxes to build them.

On Melbourne’s northern fringes, Mitchell Shire residents have been pressing the planning authority for a decision over the Beveridge North West PSP for four years.

Council and residents are concerned the inclusion of a basalt quarry within the growth area would have a “detrimental impact” on the community.

“Four years of uncertainty over this quarry application is harming the health and

wellbeing of our community,” Mitchell Shire mayor John Dougall said.

“We expected a decision to be made much quicker and the continued delay

shows a lack of respect for our communities and their needs.”

Originally published as Under-pressure Allan govt gives green light to new homes, jobs hub in Melbourne’s southeast