Victoria Fast-Tracks Medium-Density Housing
Victoria has implemented its most significant housing supply reforms in a generation, progressively introducing streamlined “deemed to comply” approval pathways for medium-density development.
What’s Changed and When
October 16, 2025 — VicSmart for Dual Occupancy (Amendment VC288) Most dual occupancies and two-lot subdivisions in key residential zones now qualify for the VicSmart fast-track pathway: a statutory 10-day decision timeframe, no public notification, and largely no third-party appeal rights for compliant applications.
March 31, 2025 — Townhouse and Low-Rise Code (Amendment VC267) A “deemed to comply” assessment pathway now applies to developments of two or more dwellings up to three storeys. Compliant applications receive faster decisions and greater approval certainty — condensing typical timelines from 12–18 months to 3–6 months.
April 16, 2026 — Mid-Rise Code A new code governing residential buildings of four to six storeys introduces a streamlined “deemed to comply” planning pathway, removing appeal rights for compliant applications.
Industry Reaction
The Housing Industry Association estimates these reforms could add up to 25,000 additional dwellings per year to Victoria’s pipeline — critical given the state’s annual shortfall is estimated at approximately 35,000 homes against projected household formation.
Investor Opportunity
Development sites in Melbourne’s middle ring — Preston, Coburg, Glenroy, Oakleigh — are attracting renewed interest from small-format developers. The streamlined pathways make townhouse and dual-occupancy projects on corner sites significantly more viable from a feasibility and timeline perspective.
