Victoria planning changes intensify housing development dispute in Melbourne suburbs

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Victoria housing planning dispute

Highlights

Victoria's 'deemed to comply' planning rules take effect in April, enabling projects like a six-storey Armadale apartment to bypass most local objections.
Sixty activity centres, including Armadale and Box Hill, will see intensified development, with allowances for buildings of up to 20 storeys near major transport routes.
A 2025 government report shows Box Hill roads nearing capacity as density rises, prompting infrastructure funding promises while political debate intensifies ahead of the state election.

New approval rules expand scope for suburb redevelopment

As reported by ABC News, a proposed six-storey apartment project on Mercer Road in Armadale is giving residents an early view of how Victoria's "deemed to comply" planning framework can alter established neighbourhoods. The development, about 900 metres from a train station in the Liberal-held seat of Malvern, would replace five single-storey units with 29 two- and three-bedroom apartments and two underground parking levels if it is approved.

The rules take effect in April and allow projects that meet state-set standards to proceed with limited scope for objections or appeals. Residents such as Dave Corrigan say that reduces their ability to challenge projects they believe are out of character for local streets, while councils argue their influence over outcomes is now sharply constrained.

Labor says the reforms are needed to cut red tape, speed housing approvals and provide more certainty for developers. Under the Victorian government's activity centres plan, 60 designated areas near major train and tram routes, including Armadale in the City of Stonnington, are being opened to more intensive development, with some locations set to accommodate buildings of up to 20 storeys or more.

Planning Minister Sonya Kilkenny says the existing system has failed to deliver enough housing in areas where demand is strongest. The government argues Victoria needs an estimated 2.24 million additional homes by 2051, with at least 70 per cent to be built in established areas rather than on the urban fringe.

Housing push raises pressure on local infrastructure and councils

Opponents of the policy say the dispute is about more than building height, because it also affects whether residents and councils retain a meaningful role in shaping development. Stonnington Mayor Melina Sehr says many people expect taller buildings to remain concentrated around stations and major roads, but the new framework allows denser projects to move further into surrounding residential streets while narrowing avenues for local objection.

Box Hill offers a working example of the benefits and strains that can follow a shift to higher-density housing. Residents there point to easy access to shops, transport and services as a major advantage of apartment living, but they also say traffic congestion and pressure on green space are becoming more pronounced as development accelerates.

A 2025 government report finds several major roads in Box Hill are nearing capacity, and construction linked to the Suburban Rail Loop is adding lane closures and pedestrian detours in the area. Kilkenny says new projects in activity centres will generate infrastructure contributions to help fund parks, schools, road upgrades and community facilities as populations grow.

With the state election approaching, the planning overhaul is becoming a broader political contest over how Victoria balances housing supply, suburb character and local authority. Labor maintains the status quo is no longer workable, while the Coalition is pledging to scrap the activity centres policy and return planning powers to councils.

Our earlier report on the Philippines’ National Housing Expo detailed how DHSUD and Pag-IBIG Fund are bringing together around 50,000 housing units from partner developers, alongside on-site loan assistance and discounted offers for eligible members. We also explained how the Expanded 4PH Program aims to boost affordability through higher loan limits and subsidized or promotional interest rates, supporting broader efforts to increase housing supply.

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