Land & CommunitiesLeon Della BoscaFri 21 Aug 26
State Unlocks New PSP for 12,000 Homes in Melbourne’s West
Victoria’s Minister for Planning Sonya Kilkenny has approved the Melton East Precinct Structure Plan, opening a new growth corridor in Melbourne’s west that will eventually accommodate close to 12,000 homes across two delivery stages.
The approved precinct in the Western Growth Corridor, 35km west of the Melbourne CBD, could house more than 36,000 residents and support about 1600 jobs once complete.
Seven schools, four community hubs and parks equivalent to more than five MCGs are planned, alongside three new arterial roads, 14 intersections and five bridges to support the area’s growth.
Kilkenny said the approval will “unlock space to deliver thousands of more homes as we deliver the infrastructure these communities need”.
“The plans for Melton East and Merrifield North are about building connected places for more Victorians to live, work and thrive,” Kilkenny said.
Staged delivery across two phases will line up construction with infrastructure works. The approval clears the way for developers to proceed with permit applications, with the full precinct expected to be built out over 20 to 30 years.
The PSP background report sets density targets of between 20 and 40 homes per hectare, rising near activity centres and transport links, alongside a 12 per cent affordable housing target.
Higher-density precincts must include at least three housing typologies, reflecting demand for one-bedroom stock, the report notes.
Almost all homes will be within 400m of a future bus route.
Around 20ha has been set aside for light industry, 5.5ha for mixed-use activity centres and 1.5ha for local enterprise precincts linking the precinct to established hubs including Toolern and the Cobblebank Metropolitan Activity Centre.
Planned open space includes up to 38ha of active parkland plus 90ha of conservation land along Kororoit Creek.
Funding for transport and community infrastructure would flow through an Infrastructure Contributions Plan, with land release staged against delivery timelines.
Melton East forms part of Victoria’s 10-year greenfields program, which aims to unlock planning for 180,000 homes and contribute to the 2.24 million homes the state is projected to need by 2051.
The minister has approved other precincts under the same strategy, including the 1279ha Beveridge North West plan 40km north of the CBD, unlocking 15,000 homes for about 47,000 residents, and the Greenvale North (Part 2) precinct.
Draft plans covering more than 10,000 homes across Ballarat and Warrnambool are also progressing alongside 27 precinct structure plans statewide, according to the government.
