VICTORIAN Planning Minister Matthew Guy last week announced a 50,000 lot land supply target for Melbourne's growth corridors in 2014, saying that it is vital for the Victorian economy that the supply of land for housing growth is strong.
The 50,000 lot land supply target will be delivered by the Metropolitan Planning Authority and applies to land in Melbourne's western, northern and south-eastern growth corridors, with all land to be located within Melbourne's urban growth boundary.
Development Contributions Plans will apply to each structure plan for new land release areas to help provide for open space, community facilities and local infrastructure. It is expected that more than 500 hectares of employment land will also be included within the structure plans.
"The Victorian Coalition Government is committed to growing our building industry, which is a key economic driver. Every million dollars spent on housing construction creates seven full time jobs in the building sector, with further flow-on jobs," Mr Guy said.
The Metropolitan Planning Authority has recently invited public comment on Precinct Structure Plans for 21,000 housing lots in Melbourne's south-east growth corridor. Further land released this year will be focused in the western and northern growth corridors.
"This announcement compliments other major projects that have been approved recently. I am pleased to be able to provide an economic boost for Victoria and to provide increased housing affordability through greater competition. More land supply will mean greater competition in the marketplace, driving lower lot prices for homebuyers," the Minister said.
According to the government, since the state election in 2010, lot prices have come down by 15 per cent from $225,000 to $191,000 in December 2013 and the number of development projects has risen from 90 to 143.
"Housing approvals and building activity in Victoria are at the highest level in three years due to strong policy action by the state government, and important strategic planning done by the Metropolitan Planning Authority," Mr Guy said.
"Victoria has some of the best new suburbs in Australia, with carefully-planned communities providing liveable homes for our growing population. We are far better placed for housing growth than other states, which keeps housing costs comparatively lower, and makes us an attractive location for investment and business growth."
Mr Guy said the Geelong region would also be a key focus of land supply actions in 2014, with 4,000 lots recently rezoned in Lara, more land to be released in the Armstrong Creek Corridor and plans to progress the future growth corridors of Lovely Banks and Batesford South.
"Geelong's success is key to Victoria's success and we will assist Mayor Darryn Lyons and the City of Greater Geelong in planning ahead responsibly," Mr Guy said.