Victoria frees up small sites for developer housing

Public land in Melbourne’s suburbs would be opened up for private housing developments under a Victorian plan that would also allow developers to defer payment for the sites.

The Small Sites Program allows smaller tracts of surplus government land in existing suburbs to be freed up for development.

The aim is to initially deliver 260 homes across four sites in Preston, Coburg, Alphington and Malvern, with 10 per cent of the homes designated as affordable housing.

The Victorian Government hopes this will stimulate the development of new medium-density housing developments in the suburbs.

A campaign has been launched to attract interested parties who want to realize apartments and terraced houses with an average building density.

The Victorian Government has also proposed a transaction model where the land is settled later, allowing the developer or delivery partner to begin delivering the homes sooner.

According to Victoria’s Development Minister Colin Brooks, no payment will be made until construction is complete.

If the pilot program is successful, other locations in metropolitan and regional Victoria may be included.

Development Victoria and the Victorian Department of Transport and Planning will handle the EoI process, which is expected to be completed on 27 August 2024.

Construction will commence once developers are appointed, subject to planning approval.