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As part of its new housing policy, Victoria fast-tracks townhouse development

WWith a big ambition, Victorian Premier Jacinta Allan has announced the next pillar of the state’s housing policy.

It’s going to be the townhouse capital of Australia, she said on Tuesday.

Government officials say the new building code, the “Townhouse and Low-Rise Code”, will fast-track the development of these higher-density properties across residential Melbourne and regional Victoria.

According to the government, it takes about five months on average for planning applications to be assessed – and even longer if an appeal is lodged with the Victorian Civil and Administrative Tribunal (VCAT).

As a result of the fast-track, the government will be able to build a mix of homes across well-connected areas of Melbourne, helping it to reach its broader goal of building 2.24 million new homes in Victoria by 2051.

The full code will not be released until early March, but the government has provided some details.

Code applies to buildings with one to three stories

Only duplexes, townhouses, and low-rise apartments of up to three floors are covered by the new code.

Developments that meet all the code requirements can be fast-tracked through the planning process.

In addition to these requirements, the government said:

  • Characteristics of neighbourhoods, such as setbacks at the front, side, and rear
  • Requirements for tree canopy and open space
  • Apartments with one, two, and three bedrooms
  • Providing protection from overshadowing and overlooking by neighbours
  • Having enough sunlight, storage, space, ventilation, and privacy
  • Energy-efficient and sustainable buildings

Nearly 150 stakeholders and 61 Victorian council submissions were consulted in the development of these requirements, according to the government.

While Liam Davies, lecturer on sustainability and urban planning at RMIT, said it was difficult to comment without more details, some requirements sounded positive, such as ensuring more three-bedroom homes for families.

If the code is met, the project is fast-tracked

The relevant local council will then assess whether the proposed development meets the code’s requirements.

It will be fast-tracked and bypass the lengthy planning approval process if it does comply.

Residents cannot appeal the development to VCAT.

It is also required that the application comply with other overlays, like heritage, flood, and height limits, if there are any.

Government officials estimate this sort of fast-tracking could reduce the backlog of planning by nearly two-thirds.

According to the government, if the code isn’t met, the usual planning process would apply, which means that the project could be appealed through VCAT.

On Tuesday, Premier Jacinta Allan also outlined future changes in planning rules that would make it easier for landowners to subdivide their property to accommodate these developments.

Is it going to work in more houses?

Further incentivizing housing development, the state government also announced it would fast-track high-rise buildings in 10 Melbourne areas.

As far as incentivizing development is concerned, observers of the planning and housing sectors say these types of reforms are positive steps.

Additionally, some councils and residents have expressed unease about these announcements, concerned that fast-tracking developments would exclude the community.

Residents and developers were able to understand how parts of Melbourne might change as the city grows thanks to the policy, according to Dr Davies.

A base level of certainty and consistency in the planning scheme would be reasonable, he said.

According to him, there is still much to be seen in terms of how the policy will work across different areas of Melbourne, if it will sufficiently speed up the planning backlog, and how the community will react to fast-tracking development.

Developers should give priority to the community if it appears the community is losing its say

Governments may be tempted to reduce some of these requirements if they are given preferential treatment over communities,” he said.

It also gave developers more certainty, according to Cath Evans, the director of the Property Council of Australia’s Victorian division.

In the absence of certainty, the development process can be time-consuming, costly, and risky.

It can take months or even years for a developer to know whether they can begin construction after buying land, hiring planners and architects, and submitting a planning application.

However, she cautioned that these planning changes were not a “magic bullet.” 

Victoria’s property and land taxes, high construction costs, and high interest rates are slowing development.

When basic financial metrics aren’t met, these projects won’t proceed, she said.

This code will be available from April, according to the government.

Moreover, a code for apartments four to six storeys high was still under development.

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