Inner suburbs such as Prahran and Thornbury, and outer suburbs like Dandenong, have been identified as the next hubs for the development of extra housing.
Inner suburbs such as Prahran and Thornbury, and outer suburbs like Dandenong, have been identified as the next hubs for the development of extra housing.
- Updated
- Politics
- Victoria
- Development
By Kieran Rooney and Rachel Eddie
Updated February 27, 2025 — 11.43amfirst published at 10.08am
The next 25 “activity centres” in Melbourne to be targeted as part of the state government’s development of hundreds of thousands of homes have been revealed.
Premier Jacinta Allan and Planning Minister Sonya Kilkenny announced on Thursday the last of the hubs, naming inner suburbs South Yarra and Prahran, inner-northern communities such as Brunswick and Thornbury, and outer suburbs like Dandenong.
The government hopes to encourage residential development around train stations and tram stops, but is yet to specify height limits for the newest sites. It hopes to add 300,000 homes to the 25 new activity centres by 2051.
“It makes sense to allow more homes and height near public transport hubs – where else is better suited for it?” Allan said in a statement.
Most of the new centres have been added in Melbourne’s east and south-east, including on the Cheltenham line past Caulfield and along the rail corridor beyond Clayton.
Holmesglen, East Malvern and Ashburton are also named in the east.
New centres in Melbourne’s north include Coburg and Brunswick, along the Upfield line; Preston and Thornbury, along the Mernda line; and another along St Georges Road, which is serviced by tram.
Locations on the Alamein line will be classified as “neighbourhood” activity centres to accommodate smaller growth because of the line’s reduced capacity. Ashburton and Bentleigh will have similar classifications.
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Kilkenny said the final plans would acknowledge that “every centre is different”, and height limits would be imposed accordingly.
The government will also roll out new activity centre classifications for two local government areas, Melbourne and Yarra, which will differ from other regions and factor in building up strategic sites and fast-tracking specific developments.
Allan said the government would look at those communities “street by street, block by block” to target underutilised land for development.
Merri-bek Mayor Helen Davidson recognised the need for more homes and said all levels of government needed to take action to address the housing crisis, but that transport investment had to match it.
“The Upfield train line has the poorest service levels of all lines in Melbourne, and the status quo of one train every 15 to 20 minutes in peak hour is not enough,” Davidson said.
“We have been calling on the state government to urgently prioritise duplicating the Upfield train line between Gowrie and Upfield stations to improve frequency and reliability of this service.”
The state government insists the Metro Tunnel, due to open this year, will free up capacity but has delayed the level crossing removal project on the Upfield line from 2027.
Davidson said the council’s planning scheme had capacity for 7500 extra dwellings in Coburg and 8500 in Brunswick.
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Greater Dandenong Mayor Jim Memeti, speaking alongside the premier on Thursday, said the local government supported the opportunity to make way for “more housing in the right location” after consultation.
“We know that we need to deliver more homes for our community, and this new initiative today will support that along our train lines.”
Allan and Kilkenny on Sunday scaled down the height limits for neighbouring streets around some of the pre-existing activity centres.
Under the government’s activity centre proposal, the planning process for multi-storey residential dwellings will be fast-tracked from up to five years to as little as 12 months. Residential construction would also be streamlined for developments that meet their new height limits.
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Kieran Rooney is a Victorian state political reporter at The Age.Connect via email.
Rachel Eddie is a Victorian state political reporter for The Age. Previously, she was a city reporter and has covered breaking news.Connect via Twitter or email.
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