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Labor’s High-Rise Housing Plans Set to Transform Middle Melbourne

10 September, 2025

The Victorian government has unveiled draft maps showing the scale of its suburban high-rise housing plans, which will dramatically reshape middle Melbourne over the next decade. New planning zones around train and tram hubs will allow residential towers of between six and 16 storeys — up to 50 metres high.

The proposals cover 25 precincts announced last year by Premier Jacinta Allan, sparking protests in some suburbs. The government’s objective is to deliver 800,000 new homes within ten years, targeting areas with strong public transport access to absorb population growth.

Affluent suburbs such as Kew, Hawthorn, Auburn, as well as bayside areas like Hampton and multicultural hubs including Oakleigh, are among those earmarked for significant change. In Hampton, Hampton Street’s commercial strip is set for building limits of 8–12 storeys along a 1.5km stretch, replacing a landscape currently dominated by two- and three-storey buildings. At Kew Junction and Burwood Road, Hawthorn, limits of up to 16 storeys will apply across a 1.2km corridor.

The plan divides development into “cores” of high-rise buildings around stations, with medium-density zones further out. Eligible projects will be automatically deemed compliant with planning rules and exempt from review at the Victorian Civil and Administrative Tribunal (VCAT). Developers seeking taller structures would still require traditional approval processes.

Premier Allan defended the policy as “sensible and gentle,” arguing it would make Melbourne “fairer and more affordable” for workers and families. “Too many people are locked out of the suburbs where they want to live — and I’m on their side,” she said.

Planning Minister Sonya Kilkenny added that the government had already listened to community feedback during earlier consultations and was prepared to adjust plans further.

But opposition MPs slammed the move. Brighton MP and shadow treasurer James Newbury accused Labor of “trashing our suburbs,” warning the plan would force Melbourne towards London’s scale by mid-century. “With Melbourne now at 5 million people and London at 9 million, Jacinta Allan wants to double the city by wrecking our suburbs,” he said.

The draft plans will now undergo another round of public consultation before final planning controls are locked in, setting the stage for one of the most contentious urban planning debates in Victoria’s recent history.

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