Liberal plan to expand CBD high-rise zone into inner suburbs
Updated ,first published
Melbourne’s CBD will be expanded to allow for a wave of new skyscrapers under the controversial Liberal housing plan, which also promises to unwind high-density plans imposed on middle-ring suburbs.
The plan has been criticized for failing to acknowledge the abundance of apartments already in the CBD and for protecting the city’s leafy suburbs from politically motivated development.
In Opposition Leader Jess Wilson’s first major housing policy announcement ahead of the November election, the Coalition vowed to accelerate outer suburban growth areas, targeting the Allan government’s focus on middle-ring development.
Under the Liberals’ plan, Melbourne’s capital zone (CCZ) would be expanded into inner-city areas surrounding the CBD (including Southbank, North Melbourne, Fishermans Bend, Parkville, Fitzroy and Collingwood) to allow for higher density housing.
Wilson argued that the CBD expansion would bring vitality back to a city still struggling to return to its pre-pandemic vitality amid a shift to working from home.
“By increasing housing density in and around the CBD, we will strengthen businesses in the city and restore vitality through smarter planning rather than divisive debates over working from home,” he said on Wednesday.
The move is a direct challenge to the Allan government’s “activity centres” policy, which aims to redevelop 60 suburban centers near public transport (many in the green middle ring) for towers of up to 20 storeys, delivering 300,000 new homes by 2051.
Wilson promised to restore local planning controls by removing state-imposed layers in these centers of activity; This will effectively return high density decision-making back to local communities.
The Liberal density policy focuses high-rise development tightly within seats currently held by Labor and the Greens, avoiding mandatory density increases in inner and middle-ring suburbs that the Liberals need to win or hold in the November election.
Age has previously revealed that Melbourne has an oversupply of apartments in the CBD and Southbank, with 8000 new and unsold units in metropolitan Melbourne. More than 2000 of these apartments are located in Melbourne CBD and Southbank.
However, the Coalition argues that more flats are needed in the inner city, stating that only 1,400 flats will be completed by 2024; This is less than half of the long-term annual average of 3,600 apartments.
Under Wilson’s proposal, height limits would increase the most in areas closest to the CBD and shrink towards established neighbourhoods.
Higher height limits will be permitted around heritage buildings and precincts, requiring appropriate design standards and setbacks.
David Hayward, retired professor of public policy at RMIT University, said the Liberal plan appeared to be tightly focused on the election as it protected middle-ring suburbs and shifted high-density development to safe Labor and Green seats.
Hayward said the policy protected suburbs in the middle ring while ignoring the glut of unsold flats already in the city centre.
“The bigger problem for both sides is that they both assume there is a supply shortage, but neither side can demonstrate it,” he said. “All they will do is redistribute the housing stock without solving the fundamental problems of the dysfunctional housing market.”
Hayward said the move would anger residents in the inner north who have yet to see the high-rise towers.
“You move somewhere thinking this is what the future looks like, and then to have it completely turned upside down is a pretty big change to have to deal with,” he said.
The opposition also wants to speed up housing delivery in emerging areas and says the government’s focus on activity centers and development in existing suburbs has neglected green spaces.
They have pledged to speed up district structure planning systems, with some initial timelines currently extending into the late 2030s.
Opposition planning spokesman David Southwick said the state’s construction industry was in decline, with builders openly saying “anywhere but Victoria”.
“To get more families and young Victorians into homes, we need a new plan that will cut red tape, cut costs and make building easier in Victoria,” he said.
Linda Allison, president of the Urban Development Institute of Australia, welcomed the greenfield plan and said costly delays were damaging affordability in Melbourne’s newest suburbs, where most new homes are being built.
“For years the industry has been calling for reform to cut red tape and make homes more affordable for Victorians. It’s pleasing to see the Coalition listening and responding to our position with planning policy,” he said.
Allison said the Coalition’s inner-city policy had huge potential but the sector would be looking for more detail on plans for middle-ring suburbs.
“There needs to be density options across Melbourne,” he said.
Hayward warned that accelerating green space development would be costly as it would require much more intensive infrastructure spending than developing already established suburbs.
Property Council of Australia Victoria executive director Cath Evans said officials could give developers the certainty they need to start building on greenfield sites by imposing two-year deadlines on precinct building plans, publishing growth schedules and imposing strict requirements for guidance.
But Evans warned Melbourne could not rely solely on the inner city to meet housing demand in established areas.
“If we are to achieve our housing targets it is essential that local building plans are modernized to support greater density in established suburbs,” he said.
A government spokesman said Wilson’s plan would not result in more housing, cutting 300,000 new homes from activity centers and driving up house prices.
“He wants to give housing supply back to council blockers, which is what caused the housing crisis in the first place,” the spokesman said.
“Our changes have delivered more housing than any other state and made Melbourne the most affordable capital city for young renters and buyers – progress the Liberals have now vowed to unwind.”
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Daniella White is The Age’s state political correspondent. Contact her at da.white@nine.com.auConnect with: X or email.
