A Fresh Pipeline for Urban Infill Development
The Victorian Government has announced a major expansion of its Small Sites Program, a move set to unlock hundreds of new homes across inner and middle-ring Melbourne suburbs. For builders and developers, this represents a clear opportunity to participate in the state’s urban renewal agenda and deliver medium-density housing in high-demand, transport-connected areas.
Minister for Development Victoria and Precincts Harriet Shing confirmed that four new metropolitan sites will join the existing program:
- 29 Lindsay Street, Brighton
- 1 Marion Street, Brighton
- 28A & 30A Jessie Street, Preston
- 714 Burke Road, Camberwell
These additions follow six other sites announced earlier this year in Croydon South, Carlton, Heidelberg West, Baxter, Bendigo and Geelong, bringing the total to 10 current projects, and 14 sites overall since the program began.
Together, these sites are expected to deliver up to 1,000 new homes, including a minimum of 10% affordable housing across all developments.
Turning Underutilised Land into Liveable Communities
For the building sector, the Small Sites Program signals a decisive shift toward smarter, more efficient use of government land. Instead of large-scale greenfield expansion, the program focuses on smaller parcels within established suburbs, precisely where demand for well-designed, multi-residential housing is strongest.
The newly added sites sit along key train and tram corridors, with Brighton, Camberwell and Preston already benefitting from strong public transport and local amenity. These areas form part of the government’s Train and Tram Zone Activity Centre Program, which by 2051 aims to deliver more than 300,000 homes through urban infill and density along transport corridors.
This strategy isn’t just about quantity it’s about liveability and sustainability. Each location is selected for its proximity to jobs, education, healthcare, and recreation spaces, allowing families to live well-connected lives without depending on long commutes.
Expression of Interest Opens for Experienced Developers
An Expression of Interest (EOI) process opened this week, inviting developers with proven experience in delivering medium-density housing to put forward proposals for the 10 current sites.
The model is designed to attract quality-driven builders and developers who can balance commercial feasibility with community outcomes. Projects are expected to demonstrate strong design principles, energy efficiency, and affordability outcomes.
For mid-tier builders and development groups looking to diversify into townhouse and apartment projects, this program provides an on-ramp into well-located, government-facilitated land opportunities, something often out of reach in high-value suburbs like Brighton and Camberwell.
Why It Matters for Builders and Developers
The expansion of the Small Sites Program comes at a time when the construction sector is seeking both certainty and opportunity. Victoria’s housing supply challenge remains acute, with approvals and commencements below long-term averages while population growth continues to climb.
Programs like this offer several tangible benefits for the industry:
- Predictable Land Supply – Development Victoria’s transparent EOI and selection process allows builders to plan and tender with confidence.
- Access to High-Demand Suburbs – Sites in suburbs such as Brighton and Camberwell offer rare access to premium locations that are typically landlocked or unaffordable.
- Pipeline Diversity – Smaller, medium-density projects help balance risk portfolios, offering faster turnover and cashflow compared to large greenfield subdivisions.
- Alignment with Policy Direction – As governments push for higher-density housing near transport, builders who adapt early will be better positioned for future planning reforms.
- Social License and Brand Value – Projects delivering affordable and community-focused outcomes align with public expectations and can enhance brand credibility.
A Step Toward the “Missing Middle”
While the term “affordable housing” often dominates policy headlines, what the Small Sites Program is really addressing is the missing middle; townhouses, duplexes, and low-rise apartments that bridge the gap between detached homes and high-rise living.
Melbourne has long struggled to deliver this segment at scale due to planning complexity and fragmented land ownership. By aggregating and releasing state-owned parcels, the Allan Government is removing some of those barriers and setting a benchmark for coordinated urban infill.
As Harriet Shing put it:
“We’re unlocking more land to deliver more homes for Victorian families in established suburbs. Every Victorian deserves a roof over their head and a place to call home, and this program opens up more opportunities for homes that are close to jobs, schools, services and the outdoor spaces that families love.”
For builders, that statement doubles as a policy signal. The future of housing delivery in Victoria isn’t just in the outer ring, t’s in the efficient use of underutilised sites that can deliver density without losing character.
Development Victoria’s Expanding Role
The Small Sites Program is managed by Development Victoria (DV), the state’s development agency responsible for unlocking public land and facilitating major housing, urban renewal, and precinct projects.
DV’s approach has evolved beyond traditional government land sales. Its partnerships now often include joint ventures, development agreements, and build-to-rent or mixed-tenure models, providing new ways for private builders to engage.
For the industry, this opens the door to collaboration models that reward innovation and sustainability, not just the highest bid. Developers with experience in design-led, community-conscious projects stand to gain a competitive edge in these processes.
Looking Ahead: 50 Activity Centres by 2026
Beyond the Small Sites Program, the Allan Government’s Train and Tram Zone Activity Centre Program forms the backbone of its broader housing strategy.
With 50 new centres under consultation and completion expected by early next year, the long-term pipeline is significant. These centres are earmarked to support more than 300,000 new homes by 2051, reshaping how and where Victorians live.
For developers, this roadmap provides confidence that planning policy is increasingly supportive of density done well, particularly where it aligns with public transport, job hubs, and existing infrastructure.
The Good Builder View
The expansion of the Small Sites Program represents a practical, scalable response to the state’s housing challenge and a clear opportunity for proactive builders and developers.
At a time when the industry is wrestling with affordability, material costs, and project viability, initiatives like this inject new life into the urban market. They give builders a way to contribute to the housing solution and sustain their business pipelines.
If successful, the program could set a precedent for other states, showing how smaller, well-placed sites can add up to big results for housing supply, sustainability, and urban vibrancy.
For builders and developers wanting to explore opportunities:
Expressions of Interest open this week at development.vic.gov.au/projects.
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