Victoria Unveils Final Planning Rules for Homes Near Melbourne’s Train and Tram Hubs
- The reforms aim to deliver more than 300,000 new homes by 2051 in well-connected suburbs
The Victorian Government has confirmed a major set of planning reforms aimed at reshaping how Melbourne grows, with new rules allowing higher-density housing near key train stations and tram corridors. The changes form part of a long-term strategy to address housing shortages while improving access to transport, jobs and essential services.
The final planning controls apply to 25 designated activity centres across Melbourne’s inner and middle suburbs. These locations have been selected for their strong public transport links and proximity to employment and infrastructure. The reforms are expected to play a central role in delivering more than 300,000 new homes across Melbourne by 2051, according to official government projections.
The policy follows a period of public consultation that began in September 2025, when draft boundaries for the first group of activity centres were released. Feedback was gathered until October, attracting more than 12,500 submissions from residents, planners and community groups. Key concerns raised during consultation included building heights, neighbourhood character, green space and the capacity of existing infrastructure.
Authorities say the final version of the planning controls reflects these submissions while maintaining the broader goal of increasing housing supply in well-connected areas. Additional consultation is currently underway for a further 23 activity centres, with planning work also continuing in inner-city areas governed by the City of Melbourne and City of Yarra.
The 25 confirmed activity centres are spread across several major rail lines and tram corridors, highlighting the government’s focus on transit-oriented development. These include areas along the Metro Tunnel corridor, the Glen Waverley, Sandringham, Belgrave, Lilydale, Upfield and Hurstbridge train lines, as well as key tram routes in suburbs such as Thornbury and Kew.
Urban planning experts have long argued that increasing housing density near transport hubs is one of the most effective ways to manage population growth. According to Infrastructure Victoria, Melbourne’s population is expected to reach around 8 million by 2050, placing significant pressure on housing availability. Concentrating development in areas with established transport networks reduces urban sprawl and supports more sustainable city planning.
Under the new framework, each activity centre is divided into two distinct zones: core areas and catchment areas. Core zones are located closest to transport hubs and allow for the highest density development. Building heights in these areas will typically range from six to 20 storeys, depending on the site and its surrounding environment.
A key feature of the reforms is the introduction of a streamlined approval process within these core zones. Developments that comply with the set planning rules will be automatically approved without the need for appeal through the Victorian Civil and Administrative Tribunal (VCAT). This change is expected to significantly reduce approval times and provide greater certainty for developers.
Catchment areas, which surround the core zones, are designed to provide a transition between high-density developments and existing suburban neighbourhoods. These areas will support lower-rise housing, including townhouses and small apartment buildings. In most cases, inner catchments will allow buildings of up to four storeys, or six storeys on larger sites, while outer catchments will generally permit three storeys, or four on larger blocks.
The following table summarises the structure of the new planning framework:
| Zone Type | Location Focus | Typical Height Limits | Development Type | Approval Process |
|---|---|---|---|---|
| Core Area | Closest to train/tram hubs | 6 to 20 storeys | High-density apartments | Fast-tracked, no VCAT appeal |
| Inner Catchment | Surrounding core areas | Up to 4 to 6 storeys | Medium-density housing | Standard approval process |
| Outer Catchment | Further from transport centres | Up to 3 to 4 storeys | Low-rise apartments, townhouses | Standard approval process |
One of the most notable examples of the new rules can be seen in Brunswick, located in Melbourne’s inner north. Under the updated planning controls, parts of the suburb’s core activity centre will allow buildings of up to 20 storeys. These higher limits apply particularly along the Sydney Road corridor and near Brunswick and Jewell stations, where public transport access is considered strong enough to support increased density.
Government officials argue that these reforms are necessary to address long-standing constraints in Melbourne’s housing market. Victorian Premier Jacinta Allan stated that many well-connected suburbs have historically resisted higher-density development, limiting housing supply and contributing to rising property prices.
Recent data from the Australian Bureau of Statistics shows that Melbourne remains one of the fastest-growing cities in Australia, with strong migration and population growth continuing to drive demand for housing. At the same time, CoreLogic reports that dwelling values in Melbourne have experienced sustained pressure over the past decade, highlighting the imbalance between supply and demand.
Planning Minister Sonya Kilkenny said the reforms aim to ensure that more people can live close to transport, education and employment opportunities. By focusing development in these areas, the government hopes to reduce commuting times and improve overall quality of life for residents.
However, the changes are not without criticism. Some community groups have expressed concern about the impact of taller buildings on neighbourhood character, local traffic and infrastructure capacity. Others have called for stronger guarantees around green spaces and community facilities to support increased population density.
Despite these concerns, the Victorian Government maintains that the reforms strike a balance between growth and liveability. The inclusion of staged development zones and varying height limits is intended to ensure a gradual transition between high-density and established residential areas.
The broader strategy aligns with international trends in urban development. Cities such as London and Singapore have adopted similar transit-oriented planning models, concentrating housing near public transport to support sustainable growth. Research from the Organisation for Economic Co-operation and Development (OECD) suggests that such approaches can reduce congestion, lower emissions and improve economic productivity.
As Melbourne continues to expand, the success of these planning reforms will depend on their implementation and the ability of infrastructure systems to keep pace with population growth. For now, the confirmation of the first 25 activity centres marks a significant step in reshaping the city’s housing landscape.
