Victoria to create 12 new suburbs by rezoning land

Victoria is set to create 12 new suburbs across greater Melbourne, in a state bid to lower house prices.

State treasurer Tim Pallas will announce today the rezoning of the land over the next few years, according to The Australian Financial Review.

The new suburbs will include Beveridge North West, Wallan South and Wallan East, Merrifield North/Kalkallo Basin, Shenstone Park, Lindum Vale, Craigieburn West, Pakenham East, Officer South Employment precinct, Croskell, Kororoit Part 2 and Aviators Field.

The new suburbs will create around 50,000 new homes.

"The Andrews Labor government is planning for 12 new communities to sustain Melbourne's 15-year land supply, which is critical for keeping house and land packages affordable," Pallas told the AFR.

It is expected to be a challenge for the government to ensure that the newly rezoned housing areas have access to basic services such as public transport.

A study by Infrastructure Australia in October revealed that around 1.4m people residing in Melbourne's outer suburbs do not have immediate access to public transport services.