Insights Library

Victoria Government 10-Year Development Pipeline For Melbourne’s Greenfields: What Developers Need To Know

Eliza Minney & Chris Boocock

The Victorian Government has announced its 10-year plan for identified greenfield redevelopment sites in Melbourne, a much needed policy commitment for the outer suburbs after only one PSP has been finalised in the last four years.

The 10 year plan seeks to achieve delivery of approximately 180,000 new homes across Melbourne’s growth corridors and has identified PSP’s and timeframes for same based on a three part horizon. 

The Big Picture: Scale and Opportunity

The key part of the Government’s announcement is the release of 27 additional Precinct Structure Plans (PSPs) across Melbourne’s outer south-east, north, and west. For developers, this represents a much-needed development commitment with clear timelines and pathways. The announcement envisages the completion of 22 of the identified PSPs by 2035 with the remaining 7 to be under preparation by that date. 

A further commitment has been made to revisit existing PSPs which are not yet fully developed, to scout additional development opportunity in circumstances where those areas are already adequately serviced by requisite infrastructure. 

Key Benefits for Developers

  1. Long-Term Planning Certainty:
    • A decade-long view of land release schedules
    • Clear timelines for when each of the 27 new planning processes will commence
    • Enhanced ability to make strategic land acquisitions and investment decisions
    • Improved capacity for long-term project planning and resource allocation
    • Target completion of PSPs within 3-4 years of commencement, with a view to reducing that timeframe by one-third.
  2. Streamlined Planning Processes (from 1 January 2025):
    • Integration of the Victorian Planning Authority with the Department of Transport and Planning
    • Unified approach combining strategic, transport, statutory, and spatial planning
    • New dedicated concierge service to address development bottlenecks
    • Review of existing greenfield PSPs to identify opportunities for increased density
  3. PSP ‘Horizons’:
    The government has identified the PSPs in terms of development ‘horizons,’ each with distinct timeframes for completion:

    Horizon 1 – PSPs under preparation in 2024-25, targeted completion by 2028:

    Beveridge North West
    Casey Fields South
    Cardinia Creek South (Part 2)
    Croskell
    Devon Meadows
    Greenvale North (Part 2)
    Kororoit (Part 2)
    Melton East
    Northern Freight
    Officer South

    Horizon 2 – PSPs commencing between 2025-26 and 2028-29, completion by 2033:

    Beveridge South West
    Cardinia Road (Part 2)
    Clyde South
    Derrimut Fields
    Merrifield North
    Oakbank
    Pakenham West
    Rockbank South
    Wallan East (Parts 1 and 2)
    Wallan South
    Warrawee

    Horizon 3 – PSPs commencing between 2029-30 and 2033-34:

    Aviators Field
    Bayview
    Bulmans Road
    Beveridge North East
    Chartwell East
    Cooper Street West
    Mambourin East
    Melton West
    Sunbury North
    Sunbury South
    Warrensbrook
    Werribee Junction

Our office is already working with landholders in many of these PSP’s to forward plan and further streamline the process and interim planning outcomes on their land. 

Looking Ahead

This reform package represents a significant opportunity for property developers to:

  • Build long-term development pipelines
  • Make strategic land acquisitions
  • Plan for integrated communities
  • Align projects with government priorities

However, success will require:

  • Careful attention to government timelines and requirements
  • Strategic positioning in priority areas
  • Strong focus on infrastructure integration
  • Engagement with the new planning framework
    • Forward planning to consider issues such as authority and infrastructure provision, cultural heritage and environmental matters, windfall gains and tax considerations and interim planning policies which may impact the way in which your land is dealt with pending the PSP outcome. 

The Victorian Government’s commitment to this long-term plan provides some certainty for the development industry however there is still much work to do to ensure the housing to be delivered can be done so efficiently, in a cost effective manner and in a way that provides adequate, resourced and integrated housing for Victorians for years to come. For specific advice on how these changes affect your development projects or strategic planning, contact our Land Development and Planning Teams.

Eliza Minney

Partner
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Chris Boocock

Senior Associate
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