The Government is targeting 300,000 new homes within these Train and Tram Zone Activity Centres by 2051 – that’s over 11,000 additional homes per year. The proposed changes to the planning controls are intended to streamline the approval process for property owners and developers to deliver the new housing.

Proposed Planning Controls

As per the first 10 Activity Centres, the planning controls will include the introduction of a Built-Form Overlay (BFO) over the ‘core’ areas and up-zoning surrounding residential land into the Housing Choice and Transport Zone (HCTZ).

Developments within the BFO will benefit from a ‘deemed to comply’ fast-tracked pathway where third-party review is exempt for compliant proposals – this includes meeting specified building heights, setbacks, overshadowing to the public realm and, in some cases, floor area ratios.

Developments that seek a variation to these controls will not be eligible for the fast-tracked pathway.

For residential areas within the HCTZ, inner catchments (representing a 5-minute walk to the station / tram stop) can achieve heights of 4-storeys and up to 6-storeys for larger blocks more than 1,000 sqm in area.

In the outer catchment (representing a 10-minute walk from the station/tram stop) can achieve heights of 3-storeys and up to 4-storeys for larger blocks more than 1,000 sqm in area.

Initial Thoughts on the Draft Plans

Considering the 25 Draft Plans that have just been released, some core areas are expecting building heights between 6 and 16 stories.

In some activity centres, the catchment areas (HCTZ), which anticipate up to 6 storeys in height, are proposed over existing Neighbourhood Residential and General Residential zoned land, which is currently limited to 2 to 3 storeys in height. They are also proposed to be located on a number of sites currently covered by a Heritage Overlay.

From our preliminary review of the 25 Draft Plans, and in our experience in managing and obtaining approvals within the existing 10 Activity Centres, a few initial questions come to mind:

• For Activity Centres where the local Council have recently undertaken a strategic review / prepared its own structure plan (such as the Carnegie Activity Centre), building heights shown on the Draft Plans default to the heights shown in the local Council’s structure plan. However, this strategic work was prepared 3-5 years prior and predates the up-zoning proposed to the surrounding residential catchment (where built-form up to 6-storeys is now anticipated). We question whether the heights adopted within the core are now outdated in this context and whether there is a missed opportunity to increase the capacity of the core areas.
• The consultation drafts outline that existing overlays within the catchment areas will be retained. We question what percentage of the catchment areas can be realised with the increased building heights anticipated under the up-zoning into the HCTZ. For example, a significant area proposed to be within the HCTZ for the Hughesdale and Oakleigh Activity Centres are affected by the Heritage Overlay. This was similarly the case for the Camberwell Junction Activity Centre, which has since been gazetted, and these questions remain unanswered.
• In the case of the Hampton Activity Centre, the HCTZ (which allows up to 6-storeys) has been proposed to the foreshore environs which is currently affected by a Design and Development Overlay (DDO). The DDO imposes mandatory 2 and 3-storey height limits along the foreshore environs. We question how these conflicting built-form outcomes will be resolved (and what assumptions have been made regarding delivering housing in these areas).

So, what’s next?

Phase 2 consultation will take place from Wednesday 10 September through to 11:59pm Sunday 19 October 2025.

We can prepare and lodge submissions on your behalf, drawing on our experience assisting many clients through the Activity Centres Program.

If you currently own property within these areas or want to understand the opportunities the proposed planning controls will bring, contact our office, Sam or Angela.

The full list of the 25 Activity Centres that are currently on public consultation is listed below:

Bayside

• North Brighton
• Middle Brighton
• Hampton
• Sandringham

Inner South-East

• Carnegie
• Murrumbeena
• Hughesdale
• Oakleigh
• Tooronga Station (Malvern Village)
• Gardiner and Glen Iris Station
• Darling Station
• East Malvern Station
• Holmesglen Station

Inner East

• Kew Junction
• Hawthorn
• Glenferrie
• Auburn

Inner North-East

• Heidelberg

Inner North

• Coburg
• Brunswick
• High Street – Thornbury
• St Georges Road – Thornbury

Inner West

• Middle Footscray
• Tottenham
• West Footscray