Government launches pilot program to unlock land for housing in Victoria

The Victorian Government has announced a new initiative to convert surplus government land into housing developments across Melbourne’s inner suburbs.

Minister for Development Victoria Colin Brooks unveiled the Small Sites Pilot program, which aims to deliver approximately 260 homes across four sites in Preston, Coburg, Alphington, and Malvern.

“We are pulling every lever at our disposal to build 800,000 homes over the next decade, which includes unlocking surplus government land for more housing close to jobs, transport and public services,” Brooks said.

The program will focus on accelerating medium-density housing projects, with 10% of the new homes designated as affordable housing.

The government has opened expressions of interest to partner with experienced developers in delivering apartment and townhouse developments.

Brooks stated: “There is nothing more important than a roof over your head and this is about sending a clear signal to the private sector and giving them more certainty.”

Successful developers will determine the type of housing offered at each site, which may include townhouses and low to mid-rise apartments.

To incentivize rapid development, the government is proposing a delayed settlement model for the land, with payment not due until construction is completed.

Development Victoria will oversee the EOI process in partnership with the Department of Transport and Planning. The EOI period is open until 27 August.

If successful, the government plans to explore expanding the program to other sites in metropolitan and regional Victoria to address housing challenges.

The announcement comes as part of the Allan Labor Government’s broader efforts to increase housing supply across the state.

Construction is expected to commence as soon as possible, subject to relevant planning approvals.