The Victorian Government has released draft plans detailing the next 23 Train and Tram Activity Centres, setting out proposed boundaries and building heights as part of Stage 2 of the Activity Centre Program.

Building on the activity centres announced in 2025 (see our newsletter here), the new draft plans propose height increases across tram and train-connected areas throughout Melbourne, including several high-value suburbs in the eastern and south-eastern inner and middle ring transport corridors.

The draft plans explore a range of development scales across the centres, from housing densification of 3 to 6-storeys within the walkable catchments of each centre, rising to 8, 12, 16 and 20-storeys in core areas.

The draft plans are now on public exhibition, providing an opportunity for the interests of landowners and the wider community to be considered in shaping the future of each centre. Submissions are required to be lodged by 22 March 2026.

The Activity Centres

The 23 centres are grouped by train line as follows:

Blackburn to Mitcham

• Blackburn
• Nunawading
• Mitcham

Caulfield to Bentleigh and Elsternwick

• Caulfield
• Glen Huntly
• Ormond
• Bentleigh
• Elsternwick

Hawksburn to Malvern and Toorak Village

• Hawksburn
• Toorak
• Armadale
• Malvern

Mentone

• Mentone

Riversdale to Willison and Ashburton

• Riversdale
• Willison
• Ashburton

South Yarra to Windsor

• South Yarra
• Prahran
• Windsor

Springvale to Dandenong

• Springvale
• Noble Park
• Yarraman
• Dandenong

The Proposed Planning Controls

The new controls follow the same framework introduced in the Stage 1 rollout last year. Here’s what to expect:

• Core areas: A Built-Form Overlay (BFO) will be introduced. Compliant proposals within the BFO will benefit from a ‘deemed to comply’ pathway with fast-tracked approval and no third-party review, provided they meet specified heights, setbacks, overshadowing to the public realm and (in some cases) floor area ratios. Proposals seeking variations won’t be eligible for this pathway.
• Catchment areas: Surrounding residential land will be rezoned to the Housing Choice and Transport Zone (HCTZ), with the zoning split into the following catchments:
• Inner catchment (5-minute walk from the train station or tram stop): up to 4 storeys, or 6 storeys on sites over 1,000 sqm (and with a frontage of at least 20m).
• Outer catchment (10-minute walk from the train station or tram stop): up to 3 storeys, or 4 storeys on sites over 1,000 sqm (and with a frontage of at least 20m).

The draft plans identify the ‘cores’ of the activity centres, introducing a range of heights within these areas, generally from 5 to 20 storeys with heights tapering down at the catchment edges. This is where the most transformative change is expected to occur and where off-site impacts are minimised.

While some ‘cores’ will be subject to entirely new controls, some centres, including Elsternwick, Toorak, South Yarra, Prahran, Windsor and Dandenong, will be wholly or partially subject to existing controls. The inner and outer catchment framework is still proposed for these locations.

Our Initial Thoughts on the Draft Plans

We’ve reviewed all 23 draft plans. Here’s what stands out from our preliminary assessment.

• A spectrum of change. With core heights of up to 20 storeys proposed, the plans represent different degrees of transformation depending on each centre’s existing context. Some centres face moderate change; others will see something more substantial.
• Significant housing upside in inner Large inner catchment areas, particularly in inner suburbs, offer real housing opportunity. The incentive to unlock additional height on consolidated sites could see land currently zoned Neighbourhood Residential or General Residential (at 2–3 storeys) rise to 6 storeys, where lots can be brought together to meet the ‘large site’ threshold under the HCTZ.
• Questions about existing structure Where councils have recently completed their own strategic work (such as the Elsternwick Structure Plan) the draft plans have wholly or partially deferred to those local heights. This has the potential to create some awkward outcomes. At Elsternwick, for example, core heights start at 5 storeys, meaning development in the inner catchment could potentially exceed heights permitted in parts of the core. In many instances we question whether the heights drawn from existing structure plans are still fit for purpose, and whether there’s a missed opportunity to increase capacity in these core areas.
• Heritage Overlay (HO) coverage remains unresolved. The draft plans don’t propose changes to existing overlays. In inner and middle south-east centres – including Hawksburn, Malvern, Armadale and Ormond – a significant share of the HCTZ catchment areas are affected by the HO. This was also true of previously announced centres such as Camberwell Junction, and we continue to question how much catchment land can properly and feasibly be developed at the proposed heights.
• Mapping irregularities to watch. We’ve identified some mapping irregularities and boundary outcomes. At Mitcham, for example, residential land immediately south of the station (within roughly 20 metres of the entrance) has been excluded from both inner and outer catchment areas, while land more than 800 metres south-east, across a main road, has been included. Meanwhile, at Bentleigh, some Residential Growth Zone land appears to have been excluded from the catchment. While some irregularities may reflect housing growth being deemed sufficient under current zone and overlay controls, we believe there may be missed opportunities in some locations.

The Next Steps

Phase 2 consultation is open now through to 11:59pm on Sunday 22 March 2026.

If you own or have an interest in land near any of these centres, now is the time to understand what the proposed controls mean for you, both the opportunities they create and the limitations they may impose.

We’ve helped many clients navigate the changes and achieve successful permits through the Activity Centres Programme and associated pathways. Get in touch with your existing Ratio contact, or reach out to Robbie McKenzie or Jack Lyons today to find out more.