Melbourne expands housing development

The decision to expand Melbourne's Urban Growth Boundary (UBG) for housing development has been met with approval from key Australian bodies, such as the Housing Industry Association (HIA).

Planning minister Matthew Guy recently publicised the strategy, as part of an overall effort to prepare for expansion.

The plan, which will add an additional 6,000ha of land to the UBG, will improve the residential market with more certainty, said HIA regional executive director Gil King.

"The announcement of new land being earmarked for housing construction is good news for the Victorian community," said Mr King.

"Victoria needs a sensible and forward looking expansion policy that caters for the growing population's need for housing."

Melburnians have been faced with mounting rental prices and a short housing supply - rental vacancies in the city at last measure were hovering around two per cent.

These are the type of conditions that policymakers are trying to address with new development plans.

"This will assist in reducing pressure on housing prices, and providing more affordable housing
- meaning first home buyers might be able to enter the market," said Mr King.