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Victorian Opposition to Expand Capital City Zone, Scrap Activity Centres

The government warns the shift would remove 300,000 planned homes from suburban hubs, raising prices.

Overview

  • Opposition leader Jess Wilson unveiled a housing plan to extend the Capital City Zone into Fishermans Bend, North Melbourne, Fitzroy and Collingwood with the highest buildings closest to the CBD and heights tapering near established areas.
  • The plan would abandon Labor’s middle‑ring activity centres strategy and restore more planning decision‑making to local councils that work with their communities.
  • The Opposition also pledged to clear backlogs in Precinct Structure Plans to accelerate home building in outer growth areas, a move welcomed by the Urban Development Institute of Australia.
  • Industry voices urged firm timelines and clearer rules for precinct plans, with the Property Council warning that inner‑city supply alone will not meet housing needs in established suburbs.
  • Reporting has identified about 8,000 new unsold apartments across metropolitan Melbourne, while the Coalition argues inner‑city supply has lagged, citing only about 1,400 completions in 2024 against a longer‑term average of roughly 3,600; analysts say the policy may simply redistribute where homes are built.