The Victorian government's housing policies and planning approvals are currently under close examination, as several key developments proceed despite local opposition and a significant affordable housing commitment faces potential revision. These instances highlight ongoing discussions between the state's objective to increase housing supply and local community and council concerns regarding development density, design, and the role of local oversight.
Rosanna Housing Development Receives State Approval
A housing development at 125 Mountain View Parade in Rosanna, Melbourne's north-east, has received approval from the Victorian government, overriding an earlier rejection by the Banyule City Council. Planning Minister Sonya Kilkenny utilized "call-in" powers to finalize the 12-month planning process.
Planning Minister Sonya Kilkenny utilized "call-in" powers to finalize the 12-month planning process, overriding an earlier rejection by the Banyule City Council.
The approved plan outlines two buildings containing 17 dwellings, specifically one one-bedroom, eight two-bedroom, and eight three-bedroom apartments, situated around a central courtyard. The development also includes a basement carpark with spaces for 22 cars and 20 bicycles. As part of the approval, the state government imposed additional conditions on the developer, SCS Property. These conditions require an increase in the street setback by one meter, the inclusion of a pet wash and a bicycle repair station, mandatory double-glazed windows, and the conversion of five visitor parking spaces into resident parking.
Local residents expressed ongoing opposition despite the revised conditions, citing concerns about local amenity and street traffic. Banyule Deputy Mayor Rick Garotti acknowledged that the state-mandated changes improved the proposal but stated they did not fully address the council's previous concerns regarding neighborhood character, landscaping, and overall design fit. He also noted the council's concerns about its role in the decision-making process.
Developer Jim Clarke-Sullivan stated confidence in the project's appeal, noting a demand for single-level, generously sized apartments in Rosanna. The project was initially the first under Melbourne's "Future Homes" program, which offers state-designed plans and aims for a four-month approval timeframe. Banyule council rejected the proposal in February 2025 following resident opposition, and the matter was subsequently escalated to the Victorian Civil and Administrative Tribunal (VCAT) by the developer.
During this period, local MP Anthony Carbines sponsored a parliamentary petition from residents, which gathered 900 signatures and raised concerns about the development's density and infrastructure suitability. Premier Jacinta Allan defended Carbines' representation of his constituents. Minister Kilkenny later removed the matter from VCAT, referring it to an independent standing advisory committee. The committee assessed the proposal as "exemplary" in design, liveability, and sustainability, leading to official approval by the Governor in Council before Christmas. Clarke-Sullivan reported approximately $130,000 in application and legal costs, in addition to ongoing holding costs.
The 1608-square-meter site, formerly a single residence and tennis court, was designated by the state government as eligible for the program due to its proximity to a train station and an "activity center," and the absence of heritage or neighborhood character overlays. Since its 2023 launch, only two other "Future Homes" designs, located in Shepparton and Braybrook, have commenced construction.
Hampton Development Approved Amidst State Planning Discussions
Bayside City Council has granted conditional approval for a development at 531-535 Hampton Street, Hampton, despite 112 public objections. The council's decision was made alongside expressions of dissatisfaction regarding proposed state government planning changes.
The approved permit stipulates that the building must be reduced from five storeys to four, with increased setbacks. Public concerns primarily focused on building height, non-compliance with design overlays, and insufficient car parking. Residents stated they were not against development in general but considered the proposed scale excessive compared to existing three-storey developments in the area.
While the Hampton Street site currently has a preferred three-storey height limit without an enforceable maximum, the state government's draft activity centre map proposes an eight-storey limit for the area. This proposal aims to encourage higher-density housing near public transport.
Bayside councillors voiced frustration regarding the potential influence of state government planning decisions, with Mayor Debbie Taylor-Haynes criticizing the state's proposed activity centre program, citing concerns about its potential impact on community input and neighborhood character.
A state government spokesperson responded by emphasizing the need for increased housing across the state, indicating that certain suburbs should not be considered exclusive. Hugh Smyth, director of Urban Planning Collective, representing the applicant Niu Town Pty Ltd, argued the development's scale was modest in relation to the state's proposed amendments and would contribute to residential diversity. A local business owner supported the mixed-use development, anticipating increased foot traffic on Hampton Street.
Niu Town Pty Ltd had previously secured a permit for a four-storey building on the same site in 2021. Although Bayside Council attempted to limit this to three storeys, the decision was successfully appealed at VCAT. That permit expired in July 2023 before construction began. Developers subsequently expanded the development area by acquiring a neighboring storefront.
Developer Seeks Amendments to Affordable Housing Commitments
Assemble Communities, a property developer, has submitted an application to the Victorian state government to modify its affordable housing commitments for two significant projects in Brunswick and Coburg, Melbourne. These projects, totaling 622 apartments, are nearing construction completion.
The developments, located on Victoria Street in Brunswick and Sydney Road in Coburg, were fast-tracked in 2024 through the state government's Development Facilitation Program. This program allowed the projects to bypass local council oversight, contingent on 60 percent of the units being designated as "affordable" under Assemble's "Build-to-Rent-to-Own" model. The fast-tracking also resulted in height concessions, with the Coburg towers approved for 16 storeys (exceeding a local guideline of 10) and the Brunswick site for 11 storeys (overriding the council's preference for eight).
Assemble Communities now seeks to discontinue its "Build-to-Rent-to-Own" model for these two sites. Under the revised proposal, 80 percent of the apartments would be sold at market rates, with 20 percent designated as "affordable" rentals for a 10-year term, offering a 25 percent rent discount to qualifying residents. A spokeswoman for Assemble Communities stated that the proposed shift reflects "shifts in demand and underlying conditions" and contributes to overall housing supply. She also indicated that the 20 percent rental offer would still meet current fast-track program qualifications.
Merri-bek City Council Mayor Nat Abboud highlighted the importance of maximizing affordable housing contributions, citing a council analysis which suggested the proposed change would reduce the affordable housing contribution by approximately one-third. Victorian Greens housing spokeswoman Gabrielle de Vietri criticized the government, suggesting private developers were receiving "special treatment" and reducing commitments after securing approvals. Opposition planning and housing spokesman David Southwick stated that developers were using the fast-track program to gain height and looser planning controls, then withdrawing from affordable housing commitments.
Assemble Communities has been involved in several government projects on public land previously. The company merged with Super Housing Partnerships approximately 18 months ago, with AustralianSuper and HESTA holding a combined 80 percent stake in the entity (HESTA is not an investor in the Brunswick and Coburg projects).
The application for these amendments is currently under review by the Department of Transport and Planning. A decision may be made by department planners or escalated to Planning Minister Sonya Kilkenny. Documentation for the requested amendment has not been publicly listed on the department's ministerial planning register.
"Any proposal will be considered on its merits and these revisions are currently under assessment," stated the Department of Transport and Planning, declining to provide public access to the amendment documents.