Welcome to the May edition of KLM Spatial’s Industry Updates. We hope you all had a nice Easter break!
In this edition, we take a deep dive into the evolving landscape of planning and development across Victoria. From legislative changes to market trends, we explore the key forces shaping our industry and your projects. We’ll unpack the Consumer and Planning Legislation Amendment Bill, examine what the Great Design Fast Track means for streamlined approvals, and reflect on how Designing with Country is influencing place-based, culturally responsive design.
We analyse how the housing market has shifted since COVID-19, and what trends are emerging in its wake.
Stay informed, stay ahead—read on for insights that matter.
Consumer and planning legislation amendment bill
The Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024 has received Royal Assent and will come into effect by 25 November 2025 (or sooner if proclaimed). This marks another step in a long-term reform process aligned with the Red Tape Commissioner’s Review, IBAC’s Operation Sandon, and the Housing Statement.
Key Changes Include:
- New planning scheme amendment pathways – including proponent-led and low-impact routes.
- Updates to Planning Panel processes and how matters are considered.
- More flexibility for planning authorities around incomplete applications and longer permit durations.
- Potential exemptions from the Metropolitan Planning Levy for similar reapplications.
- New VCAT powers – including the ability to group similar objections, dismiss matters earlier, and manage cases more efficiently.
What It Means for You:
Increased emphasis on strategic justification and transparent decision-making.
The reforms aim to speed up approvals, though higher rezoning activity could create new bottlenecks.
The windfall gains tax from rezonings may exceed the $118 million expected in FY26/27.
The low-impact pathway still lacks clarity but is expected to simplify minor amendments.
Want to know more about how this affects your projects?
Reach out to our team at KLM Spatial – we’re here to help you navigate the changes.
Planning Reform Spotlight: Great Design Fast Track pathway
The Victorian Government is shaking up residential planning with the proposed introduction of the Great Design Fast Track — a new approval process designed to accelerate well-designed, medium-density housing.
What Is It?
The Great Design Fast Track is part of broader reforms stemming from the Red Tape Commissioner Review and the National Housing Accord. It applies to projects that deliver:
8 or more dwellings
2 to 8 storeys in height
With optional mixed-use components
The Minister for Planning will act as the Responsible Authority under this pathway.
What Gets Streamlined?
If your project qualifies, the following requirements may no longer apply:
Third-party appeal rights
Minimum garden area rules
Standard building height and setback controls
Certain conditions under section 2 uses in zoning schedules
Quality & Sustainability Still Matter
Designs must undergo review by the Office of the Victorian Government Architect (OVGA), and energy performance must exceed the minimum NatHERS standards required under the National Construction Code.
The Government is also seeking exemplar projects to shape final design guidance.
What Could This Mean for Development?
If enabled in General Residential Zones, the Fast Track could allow taller, denser developments than typically permitted — approved directly by the Minister with fewer delays and less red tape.
📚 These changes are part of the Government’s “State Design Book” initiative. Learn more or get involved via:
engage.vic.gov.au/state-design-book
Designing with country: Embedding culture into place
🔎 WATCH THIS SPACE…
Cultural heritage and Traditional Owner values are becoming more central to planning processes across Australia. In Victoria, the fifth pillar of Plan for Victoria focuses on Self-Determination and Caring for Country — though how this translates into design and consultation is still evolving.
A useful point of reference may be New South Wales, where the Connecting with Country framework (developed by the Government Architect NSW) has recently completed consultation. This initiative aims to ensure the built environment reflects Aboriginal perspectives and respects ongoing cultural relationships with land.
Some emerging design principles from NSW include:
Naming places to preserve Indigenous histories and ensure stories of place endure.
Recognising the landscape, wildlife, and ecosystems as coequal to people — reflecting an Aboriginal worldview where all elements of Country are interconnected.
Wayfinding and interpretive signage that communicates historical land use and cultural significance.
Creating inclusive public spaces that invite cultural connection and community gathering.
Aligning roads and open spaces in ways that acknowledge traditional pathways and ancient land patterns, potentially dating back thousands of years.
Looking ahead, the Victorian Government is expected to undertake consultation on a Strategic Cultural Heritage Map in late 2025. This map will identify areas that should be preserved from development, which could have significant consequences for land use — particularly in areas like the Western Grassland Reserves and Western Melbourne Regional Parks.
📚 The NSW approach can be explored further via the Connecting with Country framework developed by the Government Architect NSW.
Stay tuned — we’ll provide more updates as further guidance is released in Victoria.
Five Years On: How COVID-19 Reshaped Australia’s Housing Market
It’s been five years since the World Health Organisation declared COVID-19 a global pandemic. In that time, the Australian housing market has undergone dramatic shifts—many of them surprising, and some still unfolding. Tim Lawless, Research Director at CoreLogic Australia, recently explored how the property landscape has evolved since 2020, and what it could mean moving forward.
Initial Shock, Swift Response
In early 2020, with international borders closing and immigration halting, many feared a property market collapse. A brief period of panic selling followed, with house prices dipping temporarily. But by late 2020, the Reserve Bank had stepped in with emergency interest rate cuts, bringing the cash rate down to 0.10%—an all-time low. This move helped restore market confidence.
A Shift in Demand
As lockdowns persisted, Australians adapted—working from home and receiving temporary government support through JobKeeper and JobSeeker. Rather than retreat, buyers began searching for more space and lifestyle-oriented properties. The demand for larger, more functional homes surged.
Government support through the HomeBuilder grant further accelerated the housing and renovation sectors. By early 2022, property values had reached new highs, far exceeding initial expectations.
A New Cycle: Borders Reopen, Rates Rise
With vaccination rates rising and travel restrictions lifting, international migration resumed at scale. This influx, combined with inflationary pressures, prompted the RBA to begin lifting interest rates. Housing prices entered a more prolonged downturn, falling on average by 7.5% nationally into early 2023.
Yet, record levels of immigration continued to support housing demand. Despite rates peaking at 4.35%, the market steadily recovered, and by late 2024, property prices had again reached a new national peak.
Where We Stand Today
In the three months to February 2025, the RBA initiated a small rate cut of 0.25%, which has contributed to house prices stabilising at elevated levels. Nationally, home values have risen by 38.4% since the onset of the pandemic—equivalent to an average increase of $227,000 in median dwelling value.
Melbourne’s market has been more subdued, recording a 12% rise in house prices and an 8.4% increase across all dwelling types. However, current conditions suggest this could change.
What Lies Ahead?
With ongoing rental shortages, robust migration, global uncertainty, and the potential for further rate cuts and pre-election stimulus for housing, Melbourne may be primed for renewed growth in the coming years.
At KLM Spatial, we’re closely monitoring these market dynamics to help clients make informed decisions in both development planning and residential investment. Whether you’re preparing a new build or navigating subdivision opportunities, we’re here to help you make the most of what’s ahead.
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