Planning Decisions Across Melbourne's Suburbs Spark Debate on Density and Affordability

Recent planning decisions in Victoria's Brunswick, Coburg, Rosanna, and Hampton suburbs have resulted in approvals for developments of varying scales, with local councils and state authorities expressing differing views on density, affordability, and community impact.

Brunswick and Coburg: Affordable Housing Reduction Approved

Project Details

Planning Minister Sonya Kilkenny's department approved permit amendments for two Assemble Communities developments:

• Brunswick (Victoria Street): 284 apartments, with affordable units reduced from 170 to 57
• Coburg (Sydney Road): 384 apartments, with affordable units reduced from 203 to 68

The combined 622-apartment portfolio originally had a 60% affordable housing commitment, which was reduced to 20% under the approved amendments.

Original Agreement and Concessions

Both projects were originally approved in 2024 under the state government's Development Facilitation Program (DFP), which fast-tracked developments in exchange for affordable housing commitments. The fast-track process bypassed local council oversight and granted height concessions:

• Coburg towers: approved for 16 storeys, exceeding the local guideline of 10 storeys
• Brunswick site: granted an 11-storey limit, overriding the council's preference for eight storeys

Revised Housing Model

The original "Build-to-Rent-to-Own" model allowed residents to pay market rent for five years then purchase at a locked-in price. The new model replaces this with standard build-to-rent apartments:

• 125 households will receive below-market rents at a 25% discount
• The discount period is set for 10 years
• 80% of apartments will be sold at market rates

An Assemble spokesperson stated the shift to long-term rentals responds to "shifts in demand and underlying conditions" and provides stable long-term rental supply.

Reactions

Merri-bek City Council opposed the changes. Mayor Nat Abboud cited a council analysis finding the affordable housing contribution would be reduced by approximately one-third. The council noted the Coburg tower exceeds local height limits and argued the original commitment was the public benefit justifying the height concessions.

State planners rejected the council's concerns, stating the public benefit is higher under the new plan due to the longer duration of rental discounts.

Political figures expressed criticism:

• Victorian Greens housing spokeswoman Gabrielle de Vietri accused developers of using affordable housing as a "Trojan horse" to secure approvals then reducing commitments.
• Opposition planning spokesman David Southwick stated developers used the fast-track program to secure concessions before walking away from affordable housing commitments.

Developer Background

Assemble Communities, 80% owned by AustralianSuper and HESTA, merged with Super Housing Partnerships approximately 18 months ago. HESTA is not an investor in the Brunswick and Coburg projects.

Review Status

The application for amendments is under review by the Department of Transport and Planning. Documentation has not been publicly listed on the ministerial planning register. The department and Minister Kilkenny's office declined to provide documents, stating "any proposal will be considered on its merits and these revisions are currently under assessment."

Rosanna: State Government Approves Development Overriding Local Council

Development Details

The Victorian government approved a housing development at 125 Mountain View Parade, Rosanna, overturning a prior rejection by Banyule City Council. Planning Minister Sonya Kilkenny exercised her "call-in" powers to finalize the 12-month planning process.

The approved development comprises two buildings with 17 dwellings surrounding a central courtyard:

• One one-bedroom apartment
• Eight two-bedroom apartments
• Eight three-bedroom apartments
• Basement carpark for 22 cars and 20 bicycles

Additional state-imposed conditions required:

• Increased street setback by one meter
• Inclusion of a pet wash and bicycle repair station
• Mandatory double-glazed windows
• Conversion of five visitor parking spaces to resident parking

Local Opposition and Council Position

A Mountain View Parade resident, who requested anonymity, stated the revised conditions would not diminish local opposition, citing concerns about potential impacts on local amenity and street traffic. The resident indicated plans to acquire the adjacent property to prevent further apartment development.

Banyule Deputy Mayor Rick Garotti acknowledged the additional setback and other mandated conditions improve the proposal but stated they do not fully address the council's concerns regarding neighborhood character, landscaping, and overall fit.

Project History

Banyule council rejected the development in 2024 as it was the first project under Melbourne's "Future Homes" program, which offers developers access to state-designed plans at reduced cost with a promised four-month approval timeframe. The project encountered delays at the local planning stage, with Banyule council rejecting the proposal in February 2025 following resident opposition in an area characterized by larger single-family homes.

Escalation and Approval Process:

1. Developer SCS Property escalated the matter to the Victorian Civil and Administrative Tribunal (VCAT)
2. Local MP Anthony Carbines sponsored a parliamentary petition from residents, which included AI-generated images of the proposed development and labeled the project a "planning emergency" on an associated website (since removed)
3. The 900-signature petition was signed by Carbines and presented to the Legislative Assembly in October
4. Minister Kilkenny removed the matter from VCAT and referred it to an independent standing advisory committee
5. Prior to Christmas, the Governor in Council granted official approval after the committee assessed the proposal as "exemplary" in terms of design, liveability, and sustainability

Developer Perspective

Jim Clarke-Sullivan, developer from SCS Property, stated there is demand for single-level, generously sized apartments in Rosanna, noting several inquiries from individuals seeking to downsize while remaining in the community. He reported approximately $130,000 in costs for the application process and legal representation, plus ongoing holding costs for finance, land tax, and rates.

Site Justification and Broader Context

The 1,608-square-meter site, formerly occupied by a single residence and tennis court, was designated by the state government as eligible for the program based on its location within 800 meters of a train station, proximity to an "activity centre," and absence of heritage or neighborhood character overlays.

A state government spokesperson affirmed the government's objective to facilitate increased housing construction statewide.

Premier Jacinta Allan defended MP Carbines' involvement, stating elected officials commonly represent their constituents' perspectives.

Since its 2023 launch, only two other "Future Homes" designs, located in Shepparton and Braybrook, have commenced construction. Housing advocacy group YIMBY Melbourne commented that Banyule council's actions demonstrated how local governments can exacerbate housing supply issues.

Hampton: Bayside Council Conditionally Approves Development

Development Details

Bayside City Council granted conditional approval for a development at 531-535 Hampton Street, Hampton, despite 112 public objections.

The approved permit requires:

• Building reduction from five storeys to four
• Increased setbacks

Public objections included concerns about building height, non-compliance with design overlays, and insufficient car parking. Resident Dianna Ohlrich stated the community is not against development but considered the proposed scale excessive compared to other three-storey developments in Bayside.

Regulatory Context

The Hampton Street site currently has a preferred three-storey height limit but no enforceable maximum. The state government has proposed an eight-storey limit for the area as part of its draft activity centre map, aiming to encourage higher-density housing near public transport.

Council and State Government Positions

Several Bayside councillors, including Geoff Leigh, voiced frustration over state government influence on planning decisions. Mayor Debbie Taylor-Haynes criticized the Victorian government's proposed activity centre program for potentially sidelining community input and altering neighborhood character.

A state government spokesperson responded by emphasizing the need for more housing across the state, stating suburbs like Brighton and Hampton should not be exclusive.

Applicant and Business Support

Hugh Smyth, director of Urban Planning Collective representing applicant Niu Town Pty Ltd, argued the development was modest relative to the state's proposed amendments and would increase residential diversity. Local business owner Lindsay Barnes supported the mixed-use development, believing it would revitalize the Hampton strip through increased foot traffic.

Historical Context

Niu Town previously received a permit for a four-storey building on the same site in 2021. Bayside Council attempted to limit this to three storeys, but the decision was successfully appealed at a VCAT hearing. That permit expired in July 2023 before construction began. Developers subsequently acquired a neighboring storefront, expanding the development area.