The Victorian Government has announced a new plan to boost housing development near public transport hubs in Melbourne’s inner suburbs. 

The plan, revealed by Premier Jacinta Allan on Sunday, will introduce 50 higher-density “activity centres” around key train stations and tram stops, aiming to deliver over 300,000 new homes by 2051. 

The initiative targets young people, families, and downsizers seeking affordable housing options in well-connected areas.

The project, part of the government's expanded Activity Centre program, includes a mix of residential building heights - taller developments at the core, with lower-rise housing in surrounding walkable areas up to 800 metres from stations. 

The first 25 centres announced include areas served by the Metro Tunnel and the Frankston, Sandringham, Belgrave/Lilydale, and Glen Waverley train lines. 

The remaining 25 sites should be confirmed by the end of 2024, accompanied by the “Plan for Victoria”, which outlines broader community and infrastructure planning.

Premier Allan says the new zones represent a long-term approach to Melbourne’s housing and transport integration. 

“Building more homes around 50 inner-suburban train stations means young people have more opportunity to rent or buy a place that’s directly connected to public transport,” she said. 

Planning Minister Sonya Kilkenny added that the approach is intended to create “incremental change that sets Victoria up for the next generation”.

However, the announcement has faced strong local opposition, especially in affluent suburbs like Brighton, Toorak, and Armadale, where residents expressed concerns about the impact of high-rise developments on neighbourhood character and heritage. 

During Allan’s announcement in Brighton, a group of residents protested, chanting “Shame, premier, shame”, voicing fears that the new housing policy would alter the suburbs’ dynamics and put pressure on local infrastructure.

Critics, including opposition spokesperson James Newbury, argued that the plan lacks proper community consultation and could exacerbate Melbourne’s housing challenges rather than resolve them. 

Newbury described the policy as “screwing over” established communities, particularly in historically low-density areas. 

Despite the backlash, the plan has been welcomed by some housing advocates and industry bodies. 

Further announcements are expected in the coming weeks as the government details its broader housing strategy.

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