Housing unaffordability is plain as day. Comparing median dwelling price to median income, Australia is the least affordable of the Anglophone countries.
Standing out against a national political landscape of more talk than action, the Victorian government is making policy moves on this front. Of course, with the financial interests at stake not everyone is pleased.
This past November, the Victorian government released its activity centre plan. The plan centred on 50 new train and tram activity zones where greater housing density would be encouraged.
The policy claims it will “deliver more homes for young people, families and downsizers in Melbourne’s inner suburbs”. The first 25 zones are situated between Richmond, Clayton, Camberwell and Box Hill in the east, and Footscray and Tottenham in the west.
This was an improvement on NSW Premier Chris Minns’ plan. The NSW ALP leader promised 50 new high-density zones 12 months prior, but only named seven.
Melbourne’s “activity zones” are to be served by the Suburban Rail Loop. Scheduled for completion by 2035, the loop is the rail version of a ring road.
Additionally, a stamp duty discount for apartments and townhouses purchased off-the-plan is in place until October this year. The discount, greater for first-home buyers, saves purchasers between $20,000-$30,000.
The government has also promised developers will pay their fair share to local infrastructure. The devil will be in the detail, and the details have been pushed back until further consultation with developers before March 2025.
The Allan government’s plan drew fire from both sides. YIMBY Melbourne decried the tightening of the height limit away from main roads from 6-storeys to 4-storeys, arguing that six would generate faster action from developers.
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Meanwhile, Council Watch Victoria denounced Premier Jacinta Allan as planning to make Melbourne “the townhouse capital of Australia.” That’s in response to a statewide “townhouse and low-rise code” that will remove local council from the approvals process for such constructions.
“If councils try and block too many new houses from being built, we’ll take away their planning powers and do it ourselves,” said Allan. “It’s simple – work with us to unlock space for more homes or we’ll do it for you.”
“We’re in a housing crisis and the status quo is not an option. It’s time to shake things up,” the Premier said.
Allan’s government has taken initiative on the no.1 issue in Australian politics. But the criticism shows that with such a large share of so many people’s assets tied up in houses, it’s a bold politician who addresses it seriously.
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