Victoria’s property market has been stuck in first gear—affordability issues, investors pulling out, and a sluggish development pipeline. But the latest planning reforms might finally shake things up.
The Victorian government is cutting red tape, making it easier to subdivide land and build townhouses. More supply, faster approvals, and fewer bureaucratic roadblocks mean developers can actually get projects done.
For years, Victoria has lagged behind Sydney. A duplex approval in NSW takes 12 weeks. In Victoria? Up to a year—costing developers hundreds of thousands in holding costs.
Take Hadfield. A developer bought two high-density blocks for $1.19M each in 2020 (3&5 Eileen street). Just two weeks ago, it sold for $805K & $800K—an $800K loss. Delays, skyrocketing material costs, and financial strain forced a bank sale. This isn’t a one-off. It’s been happening all over Melbourne.
Now, with fewer planning hurdles, we’ll see:
✅ More townhouses & dual-occupancy homes
✅ More supply in established suburbs for new mid to high spec homes.
✅ Potential price stabilisation in high-demand areas
Will this revive Melbourne’s market? Too early to call. But one thing’s clear—this change was long overdue. And for switched-on developers and investors, there could be serious opportunities ahead.