In a bold bid to boost home ownership among millennials, Victoria’s Premier Jacinta Allan has announced an ambitious plan to make the state the “townhouse capital” of Australia. Speaking at a recent Melbourne Press Club event, Allan outlined her vision to streamline planning and building systems, allowing property owners to more easily add a second home, build two new dwellings, or subdivide a block without the need for a permit.
The Townhouse Dream
According to Allan, the humble suburban townhouse represents “exactly the sort of homes we need to build” to cater to the needs and aspirations of modern millennials. She described it as the ideal choice for 30-somethings looking to purchase a new home with a few bedrooms, a modest yard, and a carport, all within a reasonable distance from the city center.
It’s the achievable dream for the modern millennial, and if you’re an owner, it’s a good way to make a bit of money while you’re building a home for someone else.
Premier Jacinta Allan
The premier went on to say that she sees few downsides to building more townhouses, asserting that “the community is ready to see more of them.” This sentiment reflects a growing recognition that gentle density development, like townhouses, can play a crucial role in addressing housing affordability and availability challenges.
A Nightmare Process
While Victoria once allowed property owners to subdivide without a building permit, this provision was removed by the Kennett government in 1993. In the years since, the process of subdividing or building multiple dwellings on a single lot has become a “nightmare,” according to Allan.
Acknowledging that the old system “wasn’t perfect,” the premier assured that any new process would still protect trees, maintain flood and heritage overlays, and uphold car parking requirements. The government’s review will consider three potential changes:
- Fast-tracking subdivision approvals from 60 to 10 days
- Introducing criteria-based planning permit exemptions
- Scrapping planning permits altogether for certain developments
Industry Reactions
Reactions to the premier’s announcement have been mixed. YIMBY Melbourne project lead Jonathan O’Brien called for the complete elimination of planning permits for “gentle densities,” arguing that an approved building permit should be sufficient.
There is no reason to require a planning permit for building at gentle densities. If the building permit is approved, it should be a done deal.
Jonathan O’Brien, YIMBY Melbourne
On the other hand, shadow planning spokesperson James Newbury criticized the announcement as “beyond parody,” accusing Allan of merely promising a review rather than a concrete plan to fast-track minor subdivisions.
Next Steps
The Victorian government has pledged to consult with industry stakeholders, aiming to introduce reforms in early 2025. This announcement marks the sixth housing-related policy unveiled by the government in just five days, underscoring Allan’s determination to be remembered as “the premier who gets millennials into homes.”
As the state grapples with an ongoing housing affordability crisis, the success of the “townhouse capital” vision could prove pivotal in shaping Victoria’s urban landscape for generations to come. While challenges and criticisms remain, there is no denying the boldness of Allan’s plan to transform the great Australian dream for the millennial era.
