Public land at Melbourne infill suburbs would be opened to private residential projects under a Victorian scheme that also allows the developers to delay payment for the sites.
The Small Sites Program will allow smaller allotments of surplus government land in established suburbs to be unlocked for development.
It will initially aim to provide 260 homes across four sites at Preston, Coburg, Alphington and Malvern with 10 per cent of the homes designated as affordable housing.
The Victorian Government hopes it will drive the development of new medium-density housing projects within the suburbs.
An expressions-of-interest campaign has been opened for developers keen to provide medium-density apartments and townhouses.
The Victorian Government has also proposed a transaction model with delayed settlement of the land for the developer or delivery partner to incentivise faster delivery of housing.
Payment for the land would not be due until construction was completed, Development Victoria minister Colin Brooks said.
If the pilot program is successful, other sites in metropolitan and regional Victoria may be included.
Development Victoria and the Victorian Department of Transport and Planning will handle the EoI process, which is due to close on August 27, 2024.
Construction will begin as soon as developers are appointed, subject to planning approvals.
