2023 Victorian Housing Statement : Impacts & Assessments
“Right across Australia, finding an affordable home is becoming harder than ever before. That’s why this Housing Statement puts forward an ambitious plan to tackle the root of the problem: housing supply.
We’re setting a bold target to build 800,000 homes in Victoria over the next decade.
It’s a simple proposition: build more homes, and they’ll be more affordable. But the Government can’t fix the problem alone. We’ll do it in an Affordability Partnership with industry.”
The Event
In a significant gathering hosted by the Australian Property Developers Association (APDA), property developers, experts, and stakeholders converged at the "2023 Victorian Housing Statement: Impacts" event to discuss and unpack the governments ambitious plan "Victoria's Housing Statement" - aimed at addressing the housing crisis in Victoria. The event, MC'd by Barry Wu from Lycasia Capital, featured notable speakers and panelists who highlighted the key aspects of the planning changes.
The centerpiece of the evening was a presentation by John Cicero, Special Counsel to Best Hooper Lawyers, who outlined the core changes proposed by the government and what they mean - through the lens of a highly experienced planning and property lawyer.
The primary goal is to construct a staggering 800,000 new homes over the next decade, with a strong emphasis on turning design concepts into tangible residences. This ambitious target aims to respond to the growing demand for housing in the state of Victoria.
To achieve this ambitious goal, the plan focuses on streamlining the planning process, which includes faster approvals and a more efficient framework for facilitating housing projects. Additionally, the government is prioritising the creation of affordable housing, aiming to make housing more accessible to a broader range of residents. The plan also seeks to standardise design principles to ensure high-quality housing developments across the region.
Following John Cicero's presentation, Romy Davidov, Principal of Best Hooper Lawyers, moderated a panel discussion on the proposed housing plan. The panel included influential figures in the field, such as Stuart McGurn, Director of Urbis Town Planning, Georgia Willis, Head of Property at Moonee Valley Racing Club, and Adam Henson, Director of Development Facilitation at the Department of Transport and Planning.
The panel discussion delved into the practical implications of the plan, exploring how it would affect different sectors of the housing industry, as well as addressing potential challenges and opportunities. The diverse perspectives provided valuable insights into the feasibility and impact of the proposed changes.
"Victoria's Housing Statement" marks a significant step toward addressing the housing shortage in Victoria and generated optimism about the potential for growth and development in the region. With the support of industry experts and stakeholders, the governments' ambitious plan aims to shape the future of housing in Victoria and provide solutions to one of the most pressing issues facing the state.
“Right now, the system just isn’t working like it should – and decisions aren’t getting made fast enough. Over the last year, the number of dwellings approved across the state fell by 26.1 per cent.
At a council level, there’s a backlog of around 1,400 planning permit applications for multi-unit housing that have been sitting with councils for more than six months waiting for a decision. Some 550 of those applications have been waiting for more than a year.”
How This Affects Our Clients:
Developers
The proposed changes to the planning code, particularly the introduction of Clauses 53.22 and 53.23, are poised to significantly impact developers. Under these new provisions, certain developments that meet specific criteria will undergo Ministerial approval instead of local council approval for their town planning permits. Developers are keenly interested in observing how this streamlined approval process will function in practice.
Clause 53.22, which pertains to Significant Economic Development, outlines three categories of non-residential use applications that meet specific criteria. Similarly, Clause 53.23, addressing Significant Residential Development with Affordable Housing, outlines criteria for three categories of residential use applications. Notably, this clause prevails over inconsistent provisions in the scheme regarding heights, setbacks, and minimum garden area.
Homeowners on lots larger than 300sqm:
For homeowners with lots exceeding 300 square meters and not covered by an overlay, the changes in housing regulations bring welcomed news. Single dwellings on such properties will no longer require a planning permit, streamlining the process for those looking to make alterations or build on their land.
Homeowners on lots smaller than 300sqm:
In contrast, homeowners with lots smaller than 300 square meters, where no overlay applies, will benefit from expedited approval processes. Single dwellings on these properties will receive approval within just 10 days through VicSmart, making it easier for homeowners to make modifications or construct new structures.
Downsizers and Multi-generational Living:
The changes also present opportunities for downsizers and those interested in multigenerational living arrangements. Historically, obtaining planning approval for a second small home, often referred to as a granny flat, has been a cumbersome process. However, the new regulations will exempt dwelling garden units from the permit process if they are smaller than 60 square meters. This development is expected to foster a surge in relocatable home designs that meet these criteria, with architects like Whisker Architecture already working on similar designs for clients. This change may pave the way for more flexible and accessible housing options for downsizers and those seeking multigenerational living solutions.
We will keep updating this article as we understand more about the changes.
Read the official announcements here:
https://www.vic.gov.au/housing-statement
https://www.premier.vic.gov.au/good-decisions-made-faster
