Victoria's Ambitious Housing Plan Faces Economic and Market Hurdles

Premier Jacinta Allan's high-density housing initiative in Melbourne struggles with feasibility due to high costs and market preferences.

Developers argue that the cost of building new apartments in Melbourne is significantly higher than townhouses or detached homes, making them financially unfeasible.
The Victorian government plans to unlock land in Melbourne's outer suburbs and fast-track housing developments in 50 neighborhoods to address housing shortages.
An infrastructure contribution scheme will be trialed to ensure funding for amenities in areas with new housing developments, starting with 10 designated 'activity centers'.
The state's housing strategy includes slashing stamp duty for off-the-plan apartment purchases for a year to stimulate the market, though experts doubt it will close the affordability gap.
Developers and analysts emphasize the need for apartment prices to rise by at least 15% to make new high-density projects viable, complicating the government's housing targets.