Supply to continue increasing in Melbourne: Minister for Planning
Melbourne has been contested for its growth prospects over the past year with many experts pointing to its hefty supply capacity as underpinning the potential for softer growth compared to other capitals. We recently asked the experts about Melbourne's potential oversupply with mixed responses.
Planning Minister, Matthew Guy, is pointing to significant land release and development capacity as part of the way forward for the state of Victoria, and for Melbourne.
The latest Urban Development Program reports, covering the 19 regional centres across the state including Melbourne’s outer suburbs, has found that there is plenty of land available for future growth, said Guy.
“It’s clear that there is plenty of land for future development and plans to maintain supply. It is critical that we continue to identify land to drive industry, jobs and housing growth in regional centres,” he said.
“Melbourne is certainly in an enviable position because we have large tracts of land marked for urban renewal and new suburbs. We also have the largest amount of industrial land of all capital cities in the country.”
Over the past year, five new precinct structure plans have been approved – adding 19,000 potential house blocks in Melbourne’s new suburbs – and a record 179,400 potential dwellings from major apartment developments were slated, he said.
Currently across Melbourne five of the six growth areas had 25 years or more of land supply, with Whittlesea having 22 years. There are also 412,600 potential house lots in these growth areas, with a more than a third zoned for residential development or approved in a precinct structure plan.
He also noted that the number of potential apartments in “activity centres” has more than doubled since 2008/2009. Interestingly, when polled in October 2013, Property Observer readers believed that inner city Melbourne was oversupplied (44.8%), while many thought all of Melbourne was oversupplied (37.3%).
Investors would be wise to keep an eye on Plan Melbourne, the blueprint to 2050, if they are keen to know where releases will take place. It was launched in October 2013 and has some interesting implications.
“Right across the state, there are plans in place to ensure we can gradually open up residential and industrial land for at least the next 20 years, while protecting agricultural employment land,” he said.