Alan’s plans face criticism of consultations and high-rise concerns.
The Alan Labour Government has announced 25 “Train and Tram Zone” activity centres to promote high density housing near major transport corridors. The company aims to deliver more than 300,000 new homes to Victoria by 2051.
The plan includes rezoning wealthy suburbs such as Praslan, South Yarra and Windsor. There, we envision planning management that will boost housing supply.
Melbourne and Yarra City Councils have been designated “citywide activity centres” to unlock underutilized land for development.
Prime Minister Jacinta Alan and Planning Minister Sonya Kilkenny made the announcement at Noble Park on February 27th.
“It makes sense to build homes close to these stations that are close to these existing services, because they are close to work, school and other opportunities for families to look for when they are considering buying a home,” Alan said.
Major Transport Hubs for Drive Home Surges
The rezoning plan designates five railway stations along the Cranborne-Pakkenham Line (Cowlfield, Dandenong, Springvale, Yaraman and Noble Park) as “activity centres” for high-density residential homes.
Other important locations include several stations on the Frankston and Sandringham Line, as well as South Yarra.
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It also includes Chadstone, which is currently only available at buses and multiple eastern suburban stations.
The Alamein line will be designated as a small activity center similar to Bentley to accommodate limited growth due to the low train capacity.
A new centre is being planned at Kew Junction, adding Brunswick, Coburg and Tram corridors along High Street in Thornbury and St. Georges Road.
In the case of Melbourne and Yarra, rather than rezoning the entire precinct, the government explores targeted zoning for specific sites.
“These municipalities are already quite high, so we’re going through the streets, block-by-block, looking where we can, unlocking unused spaces that we sit there, especially those great public transport connections,” Alan said.
New Zoning Plan sets building heights across Victoria
Victoria’s updated Rezoning Plan divides 10 major activity centres into two zones. The Core District, the busiest area, and the surrounding walking area.
Victorian Prime Minister Jacinta Alan at a press conference held in Melbourne, Australia on February 17, 2025. AAP Image/James Ross
The Core District allows the tallest buildings, with height restrictions set to 10th floors of Niddrie, North Essendon and Preston, and 12 floors of Broadmeadows, Camberwell, Chadstone, Epping and Moorabbin.
The walking area is further divided into inner and outer sections, reducing the height limit. In the inner area, it can be up to four-storey buildings, or six-storey buildings on large blocks, and three-storey caps in the outer area, allowing up to four-storey buildings on large sites.
Legislators accused labor of ignoring community concerns
The plan, first announced in October 2024, has elicited acute criticism.
In response to the initial announcement, Goldstein member “Tear” independent Zoe Daniel criticised the lack of consultation and planning, claiming that provisions for childcare, medical care, school and transportation were missing.
“Of course, we need to address the shocking generational inequality created by the government, but once again, the state government talks about what’s going on in the newspaper about housing policy before consulting with the community,” she said in X.
Former liberal leader John Pesto warned that the plan would impose high-rise developments across Melbourne.
“Everything in Melbourne is covered in something very expensive for these skyscrapers to build,” he said.
Pesutto argued that the high construction costs would make apartments unruly for most Victorians, and accused the government of not consulting residents.
“You don’t speak, you have no choice,” he said.
The Business Council supported rezoning, and Sydney took the same action
Alan’s housing plan is supported by the Australian Business Council, which is proposing a similar rezoning strategy.
The Council proposes establishing a national fund to increase housing supply and reduce construction costs. This will help you deal with the ongoing housing crisis.
“We urge the federal government to establish a national reform fund, such as that founded in the 1990s, to encourage the nation to address the regulatory and planning bottlenecks that hinder home construction,” CEO Blanc Black said.
The NSW government is also taking steps to create more housing in Sydney. Seven precincts around the main transport hub have been rezoned to allow for high and mid-rise housing within 1.2 kilometres of railways and metro stations through the Transport-Oriented Development (TOD) programme.
The initiative is expected to provide nearly 60,000 new homes and over 126,000 commercial and retail space.
