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Appendix 1

 
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Melbourne 2030 – Planning for sustainable growth
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Implementation plans > Housing > What is the nature of the housing market? > Page 2


What are the main issues that affect housing? (cont.)

  Average distribution of new dwellings Proposed distribution of new households metropolitan Melbourne 2001-30 Overall distribution of new households
Location 1997–2001 2001–05 2006–10 2011–15 2016–20 2021–25 2026–30 2001–30
Greenfield development#
38% 52,000
(45.2%)
42,500
(37.6%)
32,500
(28.9%)
25,800
(23.7%)
23,500
(25.4%)
17,500
(22.4%)
193,800
(31%)
Activity centres and other strategic redevelopment sites* 24% 30,000
(26.1%)
36,800
(32.6%)
47,400
(42.1%)
52,560
(48.2%)
46,300
(50.1%)
41,700
(53.5%)
254,760
(41%)
Dispersed residential development^ 38% 33,000
(28.7%)
33,700
(29.8%)
32,600
(29.0%)

30,640
(28.1%)

22,700
(24.5%)

18,800
(24.1%)
171,440
(28%)
TOTAL 100% 115,000 113,000 112,500 109,000 92,500 78,000 620,000

Table 1. Proposed distribution of new households across metropolitan Melbourne from 2001–30.                    

# Greenfield development includes development within identified growth areas and broad hectare development in fringe areas outside identified growth areas.

* The likely feasibility of providing for such a proportion of housing demand in Activity Centres and other strategic redevelopment sites has been assessed on the basis of development within 400 metres of identified Principal and Major Activity Centres and major redevelopment sites close to major public transport (based on an assessment of completed major redevelopment sites [Residential Redevelopment in Melbourne, Issue 6], approximately 80 per cent of major redevelopment sites are located close to major public transport).

^ Dispersed residential development includes development within established urban areas, remaining major redevelopment sites not well-located for major public transport, and non-urban residential development. Non-urban development is generally located in and around small townships. It currently accounts for 3 per cent of development and is proposed to account for 1.5 per cent of all additional households by 2030. This equates to 9,500 households.

Ensuring housing affordability
Affordability problems in the housing market affect individual households and the wider community.
High housing costs can adversely affect the living standards and health of households on low-to-moderate incomes, contributing to family stress and breakdown and extending their reliance on the welfare system. The wider community is affected through the labour market shortages that can result from a lack of affordable housing, and from consequent rising homelessness, social inequality and concentrations of disadvantage.

Statistics show a growing shortage of affordable housing. Research on low-cost rental indicates an absolute decline in the number of affordable private rental dwellings in Melbourne between 1986–96. Recent market conditions are unlikely to have reversed this trend. In addition, the proportion of households deemed to be suffering housing stress has risen, and ABS figures indicate a declining rate of home purchase among those aged below 35 years.

Evidence for metropolitan and regional Victoria also shows a trend to spatial polarisation in the housing market, with some well-serviced areas becoming too expensive for people on low-to-moderate incomes. By contrast, some areas with housing that can be afforded but with limited access to job opportunities, transport, social services and other benefits of urban living have become locations of concentrated disadvantage.

Integrating housing and transport
If higher-density housing is expected to meet the needs of a growing proportion of the metropolitan population, it must be well integrated with transport nodes and activity centres.

The benefits of integrating housing and transport include:

  • a better choice of transport options for residents
  • greater use of travel options with lower economic and environmental impacts
  • improved accessibility for people who don’t use cars
  • reduced household spending on transport.

Concentrating new housing development in locations that are easily accessible to existing or proposed train, tram and bus services will promote sustainability and help achieve housing diversity and affordability.

Building sustainable neighbourhoods
The achievement of sustainable neighbourhoods and housing will require their planning to be seen as part of a larger picture that involves urban and non-urban systems.

In many parts of metropolitan Melbourne, relatively low population densities and past patterns of development make it difficult to provide easily accessible local facilities, services, public transport and job opportunities. This can result in isolation at home or dependence on others for access to services, and while housing may be relatively inexpensive in these (usually) outer suburban areas, the overall costs of living there may be higher than necessary.

Much existing housing in Melbourne is not resource-efficient. An average urban dwelling produces some
20 tonnes of CO2 greenhouse gas per year and consumes an average of 239,000 litres of high-quality drinking water. Of this, around 110,000 litres is used for toilet flushing and garden watering.

Melbourne 2030 outlines a set of Neighbourhood Principles (see Appendix 1). These represent characteristics of liveable neighbourhoods, incorporating notions of sustainability, community and practical good sense.

Protecting agricultural activities and natural resources
At last estimate, there were between 60,000 and 80,000 vacant rural living lots in the broader central Victoria region that surrounds metropolitan Melbourne. Better management of housing development on the fringes of Melbourne will minimise conflict with rural activities and ensure long-term sustainability of agricultural activities and natural resources.

Future planning for rural residential development needs to avoid or significantly reduce adverse economic, social and environmental impacts and maintain and protect rural areas with environmental, economic or cultural values.

What does this plan aim to achieve?
Melbourne 2030 aims to better manage growth and change across metropolitan Melbourne. This plan seeks to achieve housing outcomes that will:

  • provide appropriate housing for forecast increases in population and households
  • ensure that growth is directed to strategic locations with good access to services and transport
  • ensure a range of housing opportunities within established residential areas to meet changing lifestyles and housing needs
  • deliver well-located affordable housing to meet the needs of lower-income groups
  • promote walking, cycling and public transport as viable transport alternatives
  • build better and more sustainable neighbourhoods.

What does it change?
Planning authorities will need to view opportunities for redevelopment, and for more intensive development within existing urban areas, in a more holistic way than in the past to fit a broader regional context.

This plan spells out changes to the way in which housing will be planned for. They are as follows:

  • new regional housing working groups will provide a forum in which to identify and discuss housing issues and needs on a broader regional level
  • local councils will be required to identify locations for higher-density housing and develop appropriate policies and controls
  • activity centres will be a focus for a substantial proportion of new housing
  • a new set of State guidelines for higher-density housing will be developed to guide residential development of four storeys and above
  • the residential subdivision provisions will be updated to incorporate principles for neighbourhood living, included in Melbourne 2030
  • the Department of Infrastructure’s (DOI) monitoring systems will be improved and strengthened
  • surplus government land and government programs will be utilised to achieve better housing outcomes.

What are the implications for local government?
Local government will need to develop and implement strategies and policies that support and implement the directions and policies of Melbourne 2030. Particularly relevant are Melbourne 2030’s aims to:

  • increase the proportion of new housing within the established urban area, particularly at activity centres and other strategic sites suitable for redevelopment
  • locate higher-density development on sites that are well-located in relation to activity centres and public transport
  • increase the supply of well-located affordable housing.

Councils will be invited to participate in regional housing working groups. These will provide a forum for identifying housing issues and needs. They will give councils a regional context in which to develop their own local housing strategies and policies while taking into account broader regional issues.

Councils will be required to develop housing strategies or part of their Municipal Strategic Statement, as a basis for development of policies and controls to guide the form and design of future residential development within municipalities.

Councils will be given an opportunity to comment on and participate in the development of new guidelines for higher-density housing, and other initiatives that seek to improve the way in which housing is developed.

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