BREAKING NEWS: Unlimited dwellings, minimum garden space in residential zones (Melbourne)

My quick overview of this, and this is purely speculation only as we haven't seen the detailed plan yet.

GRZ - many sites will most likely see decreased density in order comply with garden allowance.

RGZ - with greater height allowances may mean the same or increased density, as you can build higher. Again making these zoned properties even more desirable.

NRZ - will be interesting. Where you typically have homes on large allotments of 700sqm+ where sub div had previously been restricted, you now can theoretically build additional dwellings. Don't know how you'd go getting it through council and their 'neighbourhood character' requirements? As it'd be unlikely there'd be any townhouses or similar developments in the vicinity. Plus you'd have to deal with the NIMBY crowd.

 

The new policy doesn't sound like about zoning any more. It talks more about unlimited number of dwellings regardless of its zoning as soon as the garden space is kept. It means less townhouses or villas, more high rises. On the block of 600cqm a developer can build a block of units 5 storey up, garage underground, surrounded by communal garden. Such investments would be more in demand in the east close to good schools and councils wob't be (shouldn't be) able to do anything about it, otherwise the new policy will be obsolete. The new policy should also be able to protect northern suburbs from overdevelopment (Preston) where councils allowed for concrete jungles to be built.

 

It is all abt zoning it basically said in clear terms the cap on dwellings in neighbourhood zone will no longer apply

A lot of areas in Preston West ard jacka st and George st, Dunstan st are neighbourhood zone. What maybe have been no sub division due to capped limits are now open to sub division. It would encourage higher density in general residential zone as well as there is increased height limits to compensate the garden offset. This will result in more pricier townhouses as another level or underground cost $$ so really u may get a bigger backyard but affordability will be worst

 

Updated Plan Melbourne 2017-2050 released...

http://www.planmelbourne.vic.gov.au...377206/Plan_Melbourne_2017-2050_Strategy_.pdf

 

Hang on, still getting used to the system.
I said this, not Melburnian!
The Age quoted the Minister saying that the GRZ height guidance would increase from 9m on a flat block to 11m as default maximum. Combined with the increased garden area requirements, I'm calling this the Supermodel Plan - Taller and thinner dwellings than ever before..... At 11m, 3 stories must become the new normal.:

 

Reformed residential zones

Lots of links to pdfs. Gonna start reading now

 

Great link I am relieved that this backyard stuff only applies to 2 zones neighbourhood and general and not affecting the growth zone.

Really the main winner is neighbourhood zone from being non-existent in some suburbs or blocks for developers

 

What was the minimum garden % previously?
It looks like a new 4 bedder might need to be a 3 bedder or build up instead.

 

Not so relieved here
I have a dev site in GRZ that I paid a slight premium for. The numbers stacked up when I bought, but I could've bought any lot and been in the same position.

 

One of the published fact sheets on the website Reformed residential zones says:

'The minimum garden area includes areas that are normally associated with the use of a garden area, such as open entertaining areas, lawns, garden beds, swimming pools, and tennis courts. It does not include things like driveways, areas set aside for car parking, or any buildings or roofed areas.'

The topic of height is a bit confusing though, because it looks like Councils can override with local provisions:

'Many councils have specifed lower maximum building heights in the schedules to their residential zones. These lower maximum building heights continue to apply despite higher maximum building heights in the reformed zones.

Lower maximum building heights can be applied through an overlay where this can be strategically justified by the council.'

 

Haven't read it as yet as working. So are the losers grz that could prior build 3 places but now no?

 

Gold medal Winners = NRZ. With sites previously restricted to one or none. Was in a midst of doing a townhouse in a back for a site looks like it will be back to drawing board to see if can fit 2 instead of one.

Sliver = Runner up winner = RGZ no change but now no maximum height and only discretionary it looks like they will be more in demand.

Bronze = Losers = would be GRZ and also if the there are overlay restrictions on height to the schedule that would take precedent hence u could not go 3 storeys and would mean reduction in TH being able put on the block. 3 storey means more $$ for dev and less margins for the developer

 

Just had a looksy, if no height restrictions in GRZ then 3 storey is possible.

2 years ago I went through the process of working out what builders were paying for blocks. They were offering 350k per townhouse that could fit on the site. 350x3 =1,050,000.
These new rules mean one dwelling lost....maybe a 200k drop in land value?

 

Biggest loser on paper is a GRZ lot of 655sqm compared with a 645sqm lot. But remember most existing Neighbourhood Character policies already place restrictions that go further than Rescode minimums, so the mandated garden space is not as radical as it may first appear.

 

So based on the new policy:

- Would existing townhouses will rise in price as it would cost more to build townhouses from now on? Especially the 2 storey ones, given that most developers would want to build 3 storey townhouses, which involves more stairs, smaller footprints, etc, and no one really want to walk that many stairs?
- Would you see a significant drop in price on those largish GRZ blocks in next few months?

 

Well basically unless a suburb has NRZ zones, majority are GRZ. I would say yes for suburbs with NRZ and GRZ combo mix - the demand would not be as great.

Townhouses it is hard to say but definitely in areas where the NRZ was in place - they were so rare than people were paying premium for them. but it would be left to seen.

 

If majority of large house blocks are general residential zoned, then this isn't really helping create more stock. If these new rules stop people from previously building 3 or more townhouse then it's not helping supply issues.

 

u probably could but the townhouse would be small with a bigger garden.

 

To me the strangest thing about this is that the State Govt seems to be pushing 3 storeys in GRZ as a very acceptable approach. ie shrink building footprints and increase height. However Councils are going to fight red of tooth and claw to prevent 3 storeys in your average street. Already many Councils require second storeys to be relatively small, so imagine how small that makes the third storey.

I predict a tsunamai of VCAT appeals based on refusal of three storey projects