Posted 11/3/08

FROM THE OFFICE OF THE PREMIER

DATE: Tuesday, March 4, 2008

NEW ZONE TO BOOST HOUSING IN GROWTH AREAS

Premier John Brumby today announced the establishment of the new Urban Growth Zone (UGZ), which will fast-track rezoning land for homes in growth areas across Melbourne.

Opening the Urban Development Institute of Australia (UDIA) conference today Mr Brumby said the plan would accelerate development of more than 90,000 land blocks by rezoning farm land.

“For the past decade this Government has invested in the services and building projects that matter to families – and this is attracting more people to Melbourne and Victoria faster than predicted,” Mr Brumby said.

“Victoria’s population boom is placing pressure on land supply, and we are taking action to meet demand for zoned land. The reforms I am announcing today will cut the time it takes to prepare land for development by more than 12 months.

“They will cut thousands of dollars per block in development costs and significantly increase the supply of new housing.

“This is the first instalment on measures to tackle housing affordability and reforms to the planning process by the middle of the year.”

New growth forecasts by the Department of Treasury and Finance and the Department of Planning and Community Development, show Victoria’s population will hit 6.2 million in 2020, rather than 2030 – and that Melbourne’s population will increase by one million a decade earlier than predicted.

Mr Brumby also released the 2007 Urban Development Program report, which shows Melbourne’s forecast supply of zoned land has fallen from 9-10 years in 2006, to 7-8 years in 2007.

“The creation of the new zone in growth areas within the Urban Growth Boundary will help speed up residential development and contribute to the Government maintaining a 10-year supply of zoned land,” he said.

Mr Brumby said developers in the newly created zone would no longer be required to apply for rezoning on individual blocks of land. Instead, planning permits will be issued if proposals comply with Precinct Structure Plans (PSPs) established in consultation with local communities.

PSPs will set out the mix of residential lots, with community space, commercial and other uses, to ensure the planning of new neighbourhoods is in step with community expectations.

He said the creation of the new UGZ, was the first step in new planning measures that will bring forward the development of land for housing. Other steps include:

• Replacing complex planning processes currently used in growth areas with new PSPs, with a stronger role for the Growth Areas Authority, in consultation with local government; and
• Incorporating Native Vegetation Precinct Plans into PSPs, rather than being dealt with separately as an appendix to the planning process.

Planning Minister Justin Madden said today’s announcement would see more housing opportunities created across Melbourne’s major growth areas.

“The new land will be made ready for development in accordance with the relevant PSP. The GAA and I will consult with councils to create the UGZ in the coming weeks,” Mr Madden said.

The growth areas councils are: Cardinia, Casey, Hume, Melton, Whittlesea and Wyndham.

Key findings of the 2007 UDP are at www.dpcd.vic.gov.au/urbandevelopmentprogram  include:

• Over 100,000 dwellings are planned for redevelopment sites in established areas;
• There are over 11,000 lots under construction across the growth areas;
• There are approximately 239,000 potential lots on residential broad hectare land across metro Melbourne and the growth regions; and
• Based on current projections there is enough zoned land supply in Melbourne’s growth areas for 7-8 years.

Mr Madden said population growth made the UDP’s role in monitoring land supply more important than ever.

“We will continue to monitor and manage growth closely so we can guarantee a supply of land for development, to address the needs of our increasing population,” Mr Madden said.