Developers warn tighter town boundaries may price buyers out of Bellarine

A move to tighten the boundaries of a Bellarine Peninsula town could price many out of the market as land supplies dry up, developers have warned.

A new draft guide to development on the Bellarine Peninsula seeks to protect its distinctive landscape. Picture: Alan Barber

A proposed tightening of Ocean Grove’s town boundaries has raised concerns many buyers will be priced out of the market as future land supplies dwindle.

Developers have questioned the merits of a new draft guide for development on the Bellarine Peninsula, which seeks to exclude two rural pockets on Ocean Grove’s fringe previously earmarked for residential growth.

The proposed changes are part of the state government’s draft Bellarine Peninsula Statement of Planning Policy (SPP), which set out a 50-year vision for the area.

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Dominion Property Group director Richard Strates said the draft policy left virtually no space for new land supply on the peninsula and instead favoured in-fill development.

He said in the case of Ocean Grove it would prevent new greenfield housing on land west of Grubb Rd, north of Ocean Grove nature reserve, which was included in the town’s long-term boundary back in 2007.

Mr Strates said there was no valid justification for the boundary change, which would lead to an “affordability crisis” as land dried up.

Development wouldn’t be permitted to cross Grubb Rd under the policy that seeks to guide settlement boundaries for the next 50 years. Picture: Alan Barber

“It will force more people out of the market and alter the character and demographics of these communities,” he said.

“As it stands, because of the dwindling housing supply and vacant land supply the younger generation are now faced with no option but to move away from their families.”

He said the City of Greater Geelong had successfully managed the measured supply of new land to meet demand in through its town structure plans, but the new policy would take away this merits-based planning tool.

The state government declared the Bellarine Peninsula a distinctive area and landscape in 2019 and the Department of Environment, Land, Water and Planning (DELWP) has developed the draft SPP to provide planning protection through state legislation.

The Point estate at Point Lonsdale is one of several new housing development across the Bellarine Peninsula.

The policy direction set out that the majority of future housing needs be directed away from greenfield land in Bellarine Peninsula towns to infill sites other Geelong growth areas.

“This is about making sure we have the right measures in place to protect the distinctive character and unique features of the Bellarine Peninsula for current and future generations,” a DELWP spokesman said.

“The final round of community consultation is now open and locals are encouraged to get involved and have their say.”

The amenities and proximity to the beach appealed to Point Lonsdale buyers Neil and Deanne who bought land at The Point.

Kerleys, Point Lonsdale agent Damian Cayzer said demand for new land in Ocean Grove has grown significantly, with buyers camping overnight to secure blocks in the most recent Oakdene estate release.

He said new developments played a critical role in helping young families get on the property ladder and allowed older people and those with disability to build homes more suited to their needs.

“New land also means new services and amenities for communities, as well as improvements to the infrastructure, new better roads, new transport links, new schools,” he said.

Community consultation is open until August 20.