Victorian Premier Jacinta Allan has announced the state government’s next pillar of its housing policy, along with a big ambition.

“We’re going to be the townhouse capital of Australia,” she said on Tuesday.

It hinges on a new building code, called the “Townhouse and Low-Rise Code”, which the government says will fast-track the development of these higher-density properties across residential Melbourne and regional Victoria.

Premier Jacinta Allan said she wanted Victoria to become the townhouse capital of Australia. (ABC News)

At the moment, the government said it takes about five months on average for these planning applications to get assessed — and even longer if appealed through the Victorian Civil and Administrative Tribunal (VCAT).

The government says this fast-tracking will help it build a mix of different homes across well-connected parts of Melbourne, helping it reach its broader goal of building 2.24 million new homes in Victoria by 2051 to relieve the housing crisis.

The full code will not be released until early March, but the government has provided some detail of what it entails.

One to three storeys covered by the code

The new code only covers duplexes, townhouses, and low-rise apartments of up to three storeys high.

It means if a development ticks all the requirements outlined in the code, it can be fast-tracked through the planning process.

The government said these requirements include, but are not limited to:

• Neighbourhood character rules, like setbacks at the front, side and rear
• Tree canopy and open space requirements
• A mix of one, two and three-bedroom apartments of a certain size
• Protection for neighbours from overlooking and overshadowing
• Enough sunlight, storage, room size, ventilation and private open space
• Sustainable and energy efficient buildings

The government said these requirements were put together after consultation with nearly 150 stakeholders and 61 submissions form Victorian councils.

The government have outlined a number of requirements necessary for fast-tracked townhouse development. (Supplied)

While RMIT sustainability and urban planning lecturer Liam Davies said it was difficult to comment without the specific detail, he said some requirements seemed positive, particularly ensuring more three-bedroom dwellings which would accommodate families.

Fast-tracked if code is met

The relevant local council would then assess whether the proposed development met the requirements in the code.

If it does, the development is “deemed to comply” and will be fast-tracked, bypassing the lengthy planning approval process.

Residents will not be able to appeal a townhouse development that abides by the new code. (ABC News: Hellena Souisa)

This means that residents can’t go to VCAT to oppose the development.

In the case that the land or property has other overlays, like heritage, flood or height limits, the application has to also comply with these rules as well as the townhouse code.

The government has predicted this sort of fast-tracking could could clear nearly two-thirds of the planning backlog.

If the code isn’t met, the government said the usual planning process would apply, which meant the project would go down the usual approval pipeline and could be appealed through VCAT.

Victorian Premier Jacinta Allan also flagged on Tuesday future changes to planning rules that would make it easier for landowners to subdivide their property to accommodate these developments.

The government said the code would help relieve the planning backlog. (ABC News: ABC News)

Will it work more houses?

The new code comes after the state government also announced it would fast-track high-rise buildings in 10 Melbourne areas to further incentivise housing development.

Observers of the planning and housing sectors largely say these sorts of reforms are a positive step, but say there are more things at play when it comes to incentivising development.

In addition, some councils and residents have shared unease about these housing announcements, concerned that fast-tracking developments would lock out the community from decision-making.

Some hold concerns about the government’s announcements. ( ABC News: Peter Drought )

Dr Davies said the policy promoted certainty around planning, which helped residents and developers understand how parts of Melbourne might change as the city grows.

“At a base level, I think the more certainty and consistency in the planning scheme is reasonable,” he said.

But he said it was yet to be seen how the policy would work across different areas of Melbourne, whether it would sufficiently speed up the planning backlog, and how the community would react to fast-tracking development.

“If it appears the community is losing its say and developers are giving preferential treatment over communities, that may put pressure on governments to curtail some of these requirements,” he said.

RMIT’s Liam Davies said certainty around the state’s planning scheme was a positive development. ( ABC News: Nicholas Mc Elroy )

Cath Evans, the director of the Property Council of Australia’s Victorian division, also said it gave developments more certainty.

“Without certainty, the development process can be expensive, time consuming and risky,” she said.

“Buying land, engaging a range of experts including planners and architects, and making a planning application is a risky exercise when it can be months or even years before a developer knows if they can go ahead.”

But she said these planning changes were not a “silver bullet” to building more homes. 

She said high construction costs, high interest rates, and Victoria’s property and land taxes were slowing down development.

Property Council Australia’s Cath Evans said planning reforms would not solve the state’s housing crisis. (Supplied: Property Council of Australia)

“Where basic financial metrics can’t be met, these projects simply will not go ahead,” she said.

The government said submissions through this code would be allowed from April.

It also said it was still developing a code for apartments four to six storeys high.