{"id":795317,"date":"2026-07-12T10:38:16","date_gmt":"2026-07-12T10:38:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/795317\/"},"modified":"2026-07-12T10:38:16","modified_gmt":"2026-07-12T10:38:16","slug":"melbourne-housing-victorian-planning-rules-less-restrictive-than-other-australian-capitals","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/795317\/","title":{"rendered":"Melbourne housing: Victorian planning rules less restrictive than other Australian capitals"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" alt=\"Lachlan Abbott\" data-testid=\"author-avatar-image\" height=\"64\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/01\/f3f0faa45aeb365d7b6cf06085c41167f1e6b728.png\"  width=\"64\" class=\"sc-9a01536c-0 libeSR\"\/>Save<\/p>\n<p class=\"sc-d1b14060-4 JmUoF\">You have reached your maximum number of saved items.<\/p>\n<p>Remove items from your <a href=\"https:\/\/www.smh.com.au\/goodfood\/saved\" class=\"sc-3f16ee48-12 sc-d1b14060-2 jyLmZI iQLtAb\" rel=\"nofollow noopener\" target=\"_blank\">saved list<\/a> to add more.<\/p>\n<p>AAA<\/p>\n<p>Melbourne has the least restrictive planning zones of any Australian capital, new research shows, but development advocates say the city\u2019s inner-eastern suburbs remain largely locked down.<\/p>\n<p><a class=\"inline-link\" href=\"https:\/\/www.smh.com.au\/national\/victoria\/who-are-the-yimbys-inside-the-group-that-is-shaking-up-melbourne-s-neighbourhoods-20240522-p5jfr4.html\" rel=\"nofollow noopener\" target=\"_blank\">Pro-development group<\/a> YIMBY Melbourne released its <a class=\"inline-link\" href=\"https:\/\/zoning.org.au\/\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">Australian Zoning Atlas<\/a> on Sunday, finding an average of 81 per cent of residential land within 20 kilometres of Australia\u2019s capital city centres is \u201chighly restricted\u201d with heritage protections, two-storey height caps and low-density zones.<\/p>\n<\/p>\n<p>But in Melbourne, only 45 per cent is deemed highly restricted \u2013 which YIMBY organiser Jonathan O\u2019Brien credited with helping make it one of <a class=\"inline-link\" href=\"https:\/\/www.smh.com.au\/politics\/federal\/house-price-fall-could-slice-100-000-from-your-home-s-value-20260622-p608yl.html\" rel=\"nofollow noopener\" target=\"_blank\">the most affordable city housing markets in the country.<\/a><\/p>\n<p>\u201cIf you want to solve the housing shortage, the first thing you have to do is make it legal to build housing,\u201d O\u2019Brien said.<\/p>\n<p>\u201cWhat we\u2019ve seen, especially over the past five years with COVID and then an enormous increase in construction costs, is that cities that are very highly restrictive have not fared well amid the shocks.<\/p>\n<p>\u201cWhereas Melbourne, on the other hand, has been able to absorb the pains of the last five years much better than any other Australian city, and that comes down to ultimately a more permissive rule set.\u201d<\/p>\n<p><img decoding=\"async\" alt=\"Jonathan O\u2019Brien, leader of Melbourne YIMBYs at Moreland station.\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/9f6ff927afe750804913a0bd620743b6921d7624.jpeg\"  class=\"sc-d34e428-1 ldCIuB\"\/>Jonathan O\u2019Brien, leader of Melbourne YIMBYs at Moreland station.Eddie Jim<\/p>\n<p>The Australian Zoning Atlas found Hobart has the most residential land under highly restrictive zoning of any Australian capital (97 per cent), followed by Adelaide (92 per cent), Darwin (88 per cent), Perth (87 per cent), Brisbane (86 per cent), Sydney (81 per cent), and Canberra (74 per cent).<\/p>\n<p>While O\u2019Brien largely praised Melbourne for allowing greater density compared to other cities, he argued more could still be done.<\/p>\n<p>\u201cThe high prices in the inner-east tell us something important, which is a lot of people want to live there, and the rules on the books do not allow them to do so,\u201d he said.<\/p>\n<p>The Australian Zoning Atlas ranked the inner-city councils of Boroondara, Yarra and Glen Eira in Melbourne\u2019s top five local government areas for constraints on residential land development. The three LGAs each have at least 75 per cent of their residential land restrictively zoned, according to the report.<\/p>\n<\/p>\n<p>But any moves to further loosen planning controls in middle- and inner-ring neighbourhoods off main roads are likely to face stiff resistance from some locals.<\/p>\n<p>In Surrey Hills, a recent proposal to redevelop one of Australia\u2019s oldest orphanages \u2013 the former St Joseph\u2019s Home for Boys \u2013 into a 76-dwelling complex with four-storey buildings has drawn the ire of those living in primarily single-storey houses nearby.<\/p>\n<p>\u201cWe were pretty horrified,\u201d Rhonda Liu said of the proposal close to her house.<\/p>\n<p>\u201cWe\u2019re not an activity centre. We\u2019re not on a main road. We need more housing, but it\u2019s just inappropriate.\u201d<\/p>\n<p><img decoding=\"async\" alt=\"Sally Forrester, Shweta &amp; Manish Rastogi and Rhonda Liu in Surrey Hills.\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/73e33aa4a835b651721d4a238926ab587d3679bf.jpeg\"  class=\"sc-d34e428-1 ldCIuB\"\/>Sally Forrester, Shweta &amp; Manish Rastogi and Rhonda Liu in Surrey Hills.Luis Ascui<\/p>\n<p>The old church site is in a zone with a two-storey height maximum, but the $62 million project has been submitted for fast-tracked approval by the state planning minister, who can override normal limits under the <a class=\"inline-link\" href=\"https:\/\/www.smh.com.au\/national\/victoria\/apartments-for-the-rich-developments-fast-tracked-with-no-affordable-housing-20250812-p5mmev.html\" rel=\"nofollow noopener\" target=\"_blank\">controversial Development Facilitation Program.<\/a><\/p>\n<p>The project was deemed eligible as the developer committed to a 3 per cent contribution to Victoria\u2019s social housing growth fund.<\/p>\n<p>\u201cTwisting the rules like that makes you a bit worried with how it\u2019s going to turn out,\u201d said Liu, who was also troubled by the threat of lost heritage.<\/p>\n<p>The chapel will be retained, but Boroondara Council will soon vote on a proposed submission to the minister that raises concern with the proposed demolition of a school building and other works.<\/p>\n<p><img decoding=\"async\" alt=\"A render of the proposed development of the former St Joseph\u2019s Home for Boys in Surrey Hills.\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/19b84cc2eeafaeb77cbc6511ec730c4ea54252b5.jpeg\"  class=\"sc-d34e428-1 ldCIuB\"\/>A render of the proposed development of the former St Joseph\u2019s Home for Boys in Surrey Hills.<\/p>\n<p>The Australian Zoning Atlas, meanwhile, found a national townhouse code allowing three-storey development on any non-heritage residential land could create 1.5 million extra homes in Melbourne.<\/p>\n<p>\u201cThree-quarters of our capitals\u2019 land is locked down,\u201d lead researchers said of the findings.<\/p>\n<p>O\u2019Brien, from YIMBY Melbourne, acknowledged other factors like construction costs also influenced housing supply, but argued zoning played a key role and warranted greater scrutiny.<\/p>\n<p>\u201cThe legacy planners and whatnot who might critique research like this actually need to reckon with the fact that this is descriptive work \u2013 this is what the world looks like,\u201d he said.<\/p>\n<\/p>\n<p>\u201c[They] should maybe look inward and think about why the system is the way it is, and how maybe it should change.\u201d<\/p>\n<p>RMIT Professor of Environment and Planning Michael Buxton argued against \u201ctearing-up\u201d current zoning controls.<\/p>\n<p>\u201cWe don\u2019t have to adopt solutions that involve destroying what makes Melbourne a really liveable city,\u201d he said.<\/p>\n<p>The zoning research came as new data showed Victorian building completions in the year to March again fell short of the number required for the state to be on track <a class=\"inline-link\" href=\"https:\/\/www.smh.com.au\/politics\/victoria\/the-crisis-driven-plan-to-build-800-000-new-homes-and-reinvent-melbourne-20230920-p5e682.html\" rel=\"nofollow noopener\" target=\"_blank\">to meet its target to build 800,000 new homes between 2023 and 2033.<\/a><\/p>\n<\/p>\n<p>The Australian Bureau of Statistics released figures last Tuesday that revealed 54,842 dwellings were finished in the one-year period \u2013 the lowest number for the timeframe in a decade.<\/p>\n<p>The number, however, was higher than New South Wales, which finished only 44,700 new dwellings.<\/p>\n<p>Get the day\u2019s breaking news, entertainment ideas and a long read to enjoy. <a class=\"inline-link\" href=\"https:\/\/www.theage.com.au\/newsletter-signup?newsletter=pm\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">Sign up to receive our Evening Edition newsletter here.<\/a><\/p>\n<p>Save<\/p>\n<p class=\"sc-d1b14060-4 JmUoF\">You have reached your maximum number of saved items.<\/p>\n<p>Remove items from your <a href=\"https:\/\/www.smh.com.au\/goodfood\/saved\" class=\"sc-3f16ee48-12 sc-d1b14060-2 jyLmZI iQLtAb\" rel=\"nofollow noopener\" target=\"_blank\">saved list<\/a> to add more.<\/p>\n<p><img decoding=\"async\" alt=\"Lachlan Abbott\" data-testid=\"author-avatar-image\" height=\"40\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/f3f0faa45aeb365d7b6cf06085c41167f1e6b728.png\"  width=\"40\" class=\"sc-9a01536c-0 libeSR\"\/><a class=\"sc-cba76dee-0 hdiTqm sc-b5b9fd03-2 jcGta-D\" href=\"https:\/\/www.smh.com.au\/by\/lachlan-abbott-p53652\" rel=\"nofollow noopener\" target=\"_blank\">Lachlan Abbott<\/a> is a crime reporter at The Age. He was previously a city reporter and covered breaking news.Connect via <a class=\"sc-cba76dee-0 hdiTqm sc-b5b9fd03-5 czsZcI\" href=\"https:\/\/www.smh.com.au\/national\/victoria\/mailto:lachlan.abbott@theage.com.au\" rel=\"nofollow noopener\" target=\"_blank\">email<\/a>.From our partners<\/p>\n","protected":false},"excerpt":{"rendered":"Save You have reached your maximum number of saved items. Remove items from your saved list to add&hellip;\n","protected":false},"author":2,"featured_media":795318,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,44],"class_list":["post-795317","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-au","tag-australia","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/795317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=795317"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/795317\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/795318"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=795317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=795317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=795317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}