The Victorian Government is moving to reshape its planning landscape, with a new pathway designed to fast-track housing and job precincts across the state.
Launched by Minister for Planning Sonya Kilkenny, the will cut through years of rezoning delays, opening the door for thousands of new homes on underutilised land.
“If land is ready for housing, it shouldn’t be stuck waiting years to be rezoned,” Kilkenny said. “This pathway is about cutting delays and getting more homes built sooner and where we need them most.”
Why It Matters
For decades, rezoning has been a slow grind in Victoria. Council-led processes can take two years or more, delaying projects that could ease pressure on a housing market now facing its sharpest affordability crisis in a generation.
Melbourne is one of the most expensive housing markets in the world, with families and young people struggling to secure a foothold. Every delay pushes projects further out, keeping supply below demand and driving prices higher.
The new pathway allows the state government to intervene where rezonings have stalled. Instead of waiting years, approvals could now be cut in half, getting construction crews on-site and new housing stock into the pipeline much faster.
What Land Is in Play?
The program specifically targets underutilised sites with the potential to be repurposed into housing and mixed-use developments. These include:
- Former industrial land
- Disused golf courses
- Old racetracks
- Surplus university land
Each of these site types represents large tracts of land often sitting idle, located in or near established suburbs. Unlocking them could transform communities, adding not only homes but also job precincts, retail, and services.
Developers and councils are now invited to submit Expressions of Interest (EOIs) through the Engage Victoria platform. To qualify, projects must demonstrate suitability in terms of size, location, complexity, and—critically—confidence in delivery.
Part of a Bigger Economic Play
The Unlocking Strategic Sites initiative forms part of Victoria’s Economic Growth Statement, which maps out how the state will drive investment, jobs, and infrastructure.
For housing, the goal is clear: accelerate supply. But the government is also framing this as an economic lever. New communities mean construction jobs in the short term and economic hubs in the long term.
By creating mixed-use precincts, the government hopes to build self-sustaining communities that balance residential growth with employment opportunities, reducing the pressure on transport networks and improving liveability.
Building on Early Success
This isn’t the first time Victoria has trialled streamlined planning.
In late 2023, the Development Facilitation Program (DFP) introduced a fast-track permit pathway. Since then, it has unlocked more than 5,000 homes.
The new rezoning pathway is a direct extension of that success, targeting the earlier and often more politically fraught step in the process. By seizing control of rezoning, the state can front-load projects with the approvals they need before handing them back to councils for localised planning and delivery.
The Tension With Councils
While the initiative promises speed, it also raises questions about local decision-making. Councils have traditionally been the gatekeepers of rezoning, balancing growth with community concerns such as traffic, green space, and amenity.
By stepping in where councils stall, the state government risks friction with local governments wary of losing control.
However, advocates argue that the housing crisis demands intervention. With population growth outpacing supply, delays have become untenable.
Urban planning expert Dr. Sarah Mellor notes:
“Councils play an important role in representing community voices. But the sheer scale of the housing challenge means state governments can’t afford to let local disputes delay projects of strategic importance.”
Housing Affordability at the Core
Victoria is not alone in facing a housing crunch. Across Australia, state governments are experimenting with new planning levers to free up land supply.
Sydney recently launched its own planning reforms to simplify approvals, while Queensland’s Residential Activation Fund is targeting infrastructure bottlenecks in regional areas.
In Victoria, the Unlocking Strategic Sites pathway is being sold as one of the most direct levers to create supply quickly. The focus is not just on raw numbers, but also on strategic location—sites close to transport, universities, and job centres.
For young Victorians, particularly first-home buyers, the promise is simple: more homes in places they actually want to live.
Developer and Industry Response
The development industry has largely welcomed the move.
“Every month lost in rezoning is another month of cost escalation, risk, and uncertainty,” says Tom Richards, a Melbourne-based residential developer. “This pathway gives us the confidence to move forward, knowing timelines are clearer and faster.”
Builders, too, see opportunity. A steady pipeline of shovel-ready land provides certainty in an industry still grappling with insolvencies and thin margins.
But industry leaders also warn that the policy’s success will hinge on the delivery test. It’s not enough to fast-track rezonings; projects must actually reach construction.
“We can’t just rezone land and let it sit. The state needs to make sure developers who put up their hand are committed to delivering,” Richards said.
Potential Flashpoints
While the initiative is being hailed as a breakthrough, it won’t come without challenges. Key flashpoints include:
- Community pushback: Neighbourhoods near golf courses or racetracks may resist high-density redevelopment.
- Environmental concerns: Industrial land may require costly remediation before homes can be built.
- Market capacity: Even with rezonings approved, a construction sector under pressure from labour shortages and rising costs may struggle to deliver at pace.
Balancing these risks will be central to the pathway’s long-term credibility.
A National Trend
Victoria’s move sits within a broader national trend of governments taking a more active role in planning.
For decades, rezoning and approvals were largely delegated to councils. But with housing supply now a political flashpoint, states are stepping in to centralise power and cut red tape.
The question is whether these interventions will genuinely fix supply shortages—or simply shift bottlenecks further down the pipeline.
The Good Builder Take
The Unlocking Strategic Sites pathway is a bold stroke at a time when boldness is required. By targeting underutilised land, the Victorian Government is sending a clear message: no more wasted opportunities.
For builders, this could mean a new wave of projects moving faster through the system. For families, it could mean more choice and, ultimately, some relief on affordability.
But the initiative will be judged not by press releases but by outcomes. Will we see cranes on those disused golf courses? Will former industrial zones become thriving communities?
As always, the devil is in the delivery.
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