metropolitan melbourne - planning · by consulting with local government, the growth areas...

MetropolitanMelbourne

Published by the Department of Transport, Planning and Local Infrastructure, 1 Spring Street, Melbourne 3000. July 2013

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CONTENTS

1.0 INTRODUCTION 1

2.0 MAJOR RESIDENTIAL REDEVELOPMENT 2

2.1 IDENTIFIED SUPPLY 2

2.2 MAJOR RESIDENTIAL REDEVELOPMENT PIPELINE BY REGION 3

2.3 MAJOR RESIDENTIAL REDEVELOPMENT PIPELINE BY REGION COMPARED TO PAST YEARS 5

2.4 MAJOR RESIDENTIAL REDEVELOPMENTS IN ACTIVITY AREAS 6

2.5 MAJOR RESIDENTIAL REDEVELOPMENTS IN ACTIVITY AREAS COMPARED TO PAST YEARS 7

3.0 BROADHECTARE RESIDENTIAL DEVELOPMENT 8

3.1 BROADHECTARE LOT CONSTRUCTION 8

3.2 LOT SIZE PROFILE 9

3.3 BROADHECTARE LOT SUPPLY 10

3.4 DEVELOPMENT READY SUPPLY OF BROADHECTARE LOTS 11

4.0 INDUSTRIAL LAND 12

4.1 NET CHANGE IN INDUSTRIAL ZONED LAND 14

4.2 THE SCALE AND SPATIAL DISTRIBUTION OF INDIVIDUAL REZONINGS 15

4.3 REZONING OF INDUSTRIAL LAND FOR OTHER USES 16

4.4 VACANT INDUSTRIAL LAND 17

4.5 CONSUMPTION OF INDUSTRIAL LAND 18

4.6 SPATIAL DISTRIBUTION OF INDUSTRIAL LAND CONSUMPTION 19

[ i ]URBAN DEVELOPMENT PROGRAM REPORT 2011-12 — METROPOLITAN MELBOURNE

LIST OF FIGURES

Chart 1: Residential redevelopment pipeline by built form by project status

Chart 2: Annual residential redevelopment pipeline of dwellings by built form

Chart 3: Residential redevelopment pipeline of dwellings by region by built form

Chart 4: Residential Redevelopment Pipeline by Region

Chart 5: Residential Development Pipeline Inside/Outside Activity Areas by built form

Chart 6: Residential Redevelopment Pipeline by built form inside/outside Activity Areas

Chart 7: Broadhectare lot construction by growth area 2001-02 to 2011-12

Chart 8: Broadhectare lot construction, by lot size (in square metres) 2005-06 to 2011-12

Chart 9: Broadhectare lot supply by growth area 2005-06 to 2011-12

Chart 10: Lot supply by development ready status 2004-05 to 2011-12

Chart 11: Change of industrially zoned land by municipality, 2000-01 to 2011-12

Chart 12: Percentage area of land by new zoning after being rezoned from industrial, metropolitan Melbourne, 2000-01 to 2011-12

Chart 13: Location of vacant zoned industrial land by Industrial Node, 2012

Chart 14: Average annual consumption of industrial land, metropolitan Melbourne, 2004-05 to 2011-12

Chart 15: Comparison of consumption occurring within the nodes and the rest of Melbourne, 1995 to 2000, and 1995 to 2012

Chart 16: Annual average consumption of industrial land, industrial nodes, 2004-05 to 2011-12

LIST OF TABLES

Table 1: Summary of gross zoned industrial land supply and total stock (ha), 2012

LIST OF MAPS

Map 1: Location of changes in industrial land, 2000-01 to 2011-12

LIST OF APPENDICES

Appendix 1: Future broadhectare lot construction potential

Appendix 2: Major redevelopment sites overview

Appendix 3: Gross zoned industrial land supply and total stocks (ha)

Appendix 4: Estimated stock of zoned vacant industrial land stocks (net developable area) (ha)

[ ii ]URBAN DEVELOPMENT PROGRAM REPORT 2011-12 — METROPOLITAN MELBOURNE

1.0 INTRODUCTION

The 2011-12 Urban Development Program for Metropolitan Melbourne provides an update on the supply of land for residential and industrial uses, and a summary of residential development projects in the pipeline. The Urban Development Program consists of three main components:

Major Residential Redevelopment Projects - includes details of all residential projects of 10 or more dwellings that are either recently constructed, under construction, or planned to be constructed within the next 10 years, on land with a previous urban use.

Broadhectare Residential Land - includes information on the supply and construction of broadhectare land across metropolitan Melbourne, including estimated lot yields. This includes land which is either zoned or has an approved precinct structure plan, as well as land that has been identified for residential development where an approved precinct structure plan is required to commence development.

Industrial Land - includes information on the supply and consumption of industrial land across metropolitan Melbourne, as well as indicators on the zoning changes of industrial land.

The information incorporated within the Urban Development Program draws on information and feedback obtained through a number of comprehensive consultations with council officers.

Broadhectare supply consists of undeveloped land within the urban growth boundary that has been zoned for future development, the vast majority of which is in Melbourne’s seven growth area Local Government Areas (Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea, and Wyndham).

By consulting with local government, the Growth Areas Authority and developers, a total supply of lots is estimated, with an anticipated timing for development. This total supply is divided into lots that are covered by an approved Precinct Structure Plan (PSP), and therefore deemed development-ready, and those not covered by a PSP.

Analysis of major residential redevelopment projects includes consultation with local government and referencing other data sources, which identify residential redevelopment projects in the existing urban area that are expected yield 10 or more dwellings are identified along with an estimated time for construction.

Major residential redevelopment information is directed to understand the future pipeline of major development projects across metropolitan Melbourne. For a variety of reasons, not all projects identified come to fruition. However, with ten years of data that has been collected through the Urban Development Program, trends in this component of the market can be determined.

[ 1 ]URBAN DEVELOPMENT PROGRAM REPORT 2011-12 — METROPOLITAN MELBOURNE

2.0 MAJOR RESIDENTIAL REDEVELOPMENT

2.1 IDENTIFIED SUPPLYUrban Development Program Residential Redevelopment Data shows that, as of July 2012, there were 168,000 dwellings in identi�ed residential redevelopment projects. In this report, major residential redevelopment ‘supply’ refers to residential redevelopment projects of 10 dwellings or more either under construction or anticipated to be constructed in the next 10 years. The Urban Development Program also records projects that were completed in the previous two years.

In�ll development projects of less than 10 dwellings, which are not included in the Urban Development Program, make up approximately half of the in�ll dwellings added to the housing stock each year.

Chart 1 shows total dwelling yield at di�erent stages of planning or construction as well as recently completed projects, by built form. Dwellings in projects of four stories or greater make up around three quarters of all dwellings to be constructed on major redevelopment sites over the next two years, and just over two thirds of those to be constructed in the three to �ve year category.

Generally speaking, projects in the Construction 0-2 years category are almost ready to commence construction. Projects in the Construction 3-5 years category are likely to go ahead but there are usually where planning permission is still required. Projects in the Possible Construction 6-10 years may be somewhat speculative but are likely to go ahead.

Ten years of monitoring major residential redevelopment projects across metropolitan Melbourne shows that over time there has been a consistent pipeline of projects delivered, and currently the forward estimates are the largest they have ever been.

Chart 1: Major Residential redevelopment pipeline by built form by project status

No.

of d

wel

lings

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Recently Completed

Under Construction

Construction 0-2 years

Construction 3-5 years

Possible Construction 6-10 years

4 storey +

2-3 Storey Attached

Single Storey Attached

Detached

[ 2 ]

Chart 2 compares the residential redevelopment pipeline as of July 2012 to data from previous years, and it shows that the potential number of dwellings identified in major residential redevelopment projects has been growing strongly since 2006-07.

Chart 2: Annual major residential redevelopment pipeline of dwellings by built formN

o. o

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gs

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

4+ Storeys 2-3 storeys Attached 1 Storey Detached

2.2 MAJOR RESIDENTIAL REDEVELOPMENT PIPELINE BY REGIONChart 3 provides a breakdown of major residential redevelopment projects by region over the next ten years. Most redevelopment activity occurs in the inner and middle areas of Melbourne, with projects of four storeys or greater being highly concentrated in the inner area.

Given that the inner area is relatively small area compared to the middle and outer areas, it contributes a very large proportion of potential development, and most of this is in the City of Melbourne. Of a total identified dwelling yield of 68,000 dwellings in the inner area, about 45,000 are in the City of Melbourne.

Overall, the number of detached dwellings identified on proposed major residential redevelopment projects decreased from 20% of total dwellings in 2004-05, to 9% in 2011-12. In comparison, the number of dwellings of 4+ stories increased from 50% in 2004-05, to 65% in 2011-12.

In the period from 2004-05 to 2011-12, the share of proposed dwellings through major residential redevelopment projects has remained fairly constant between regions. In 2004-05 the middle ring of suburbs constituted 41% of all total potential dwellings through major residential redevelopment, as compared to 44% in 2011-12. Similarly, for the inner suburbs, in 2004-05, this figure was 39% of total potential dwellings, compared to 41% in 2011-12. The outer areas decreased from 16% to 11%, and the growth areas constant at between 4-5%.

Note that the ‘detached dwellings’ referred to below are detached dwellings in major residential redevelopment projects throughout the established parts of growth area councils; and not broadhectare development.


Figure 3: Residential redevelopment pipeline of dwellings by region by built formN

o. o

f dw

ellin

gs

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Inner Middle Outer Growth Areas

4 storey +

2-3 Storey Attached

Single Storey Attached

Detached

The regions used here are comprised of the following local government areas:

Inner: Melbourne, Port Phillip, Stonnington, and Yarra

Middle: Banyule, Bayside, Boroondara, Darebin, Glen Eira, Hobsons Bay, Kingston, Manningham, Maribyrnong, Monash, Moonee Valley, Moreland, and Whitehorse

Outer: Brimbank, Frankston, Greater Dandenong, Knox, Maroondah, Mornington Peninsula, Nillumbik, and Yarra Ranges

Growth Area: Casey, Cardinia, Hume, Melton, Whittlesea, Wyndham


2.3 MAJOR RESIDENTIAL REDEVELOPMENT PIPELINE BY REGION COMPARED TO PAST YEARSChart 4 shows the trend in spatial distribution of the development pipeline of dwellings in major residential redevelopment projects using Urban Development Program data for each year from 2004-05 to 2011-12. The growth in the overall number of potential dwellings on major redevelopment sites across metropolitan Melbourne is from 2004-05 to 2011-12 is largely as a result of projects within the inner and middle areas; with the outer and growth areas still contributing comparatively low levels.

Chart 4: Residential Redevelopment Pipeline by Region

No.

of d

wel

lings

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Inner Middle Outer GA


2.4 MAJOR RESIDENTIAL REDEVELOPMENTS IN ACTIVITY AREASChart 5 shows the potential number of dwellings in major residential redevelopment projects as at July 2012, inside and outside activity area boundaries*, by built form. Projects of four storeys or greater are largely concentrated inside activity areas (which includes the CBD), while those less that four stories tend to be outside activity areas.

Chart 5: Potential Dwellings in Major Residential Redevelopment Projects inside/outside Activity Areas

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Detached Single Storey Attached 2-3 Storey Attached 4 storey +

Outside Activity Area

Inside Activity Area

No.

of d

wel

lings

*Activity area boundaries are based on Council Structure Plans and other strategic plans where these exist. Where Council has not adopted an activity area boundary, DTPLI has mapped a boundary based on land use zoning.


2.5 MAJOR RESIDENTIAL REDEVELOPMENTS IN ACTIVITY AREAS COMPARED TO PAST YEARSChart 6 shows the potential number of dwellings in major residential redevelopment projects as of July 2012 compared to that identified in previous years, by built form and by location inside or outside activity centre boundaries.

It shows that the potential number of dwellings in major residential redevelopment projects within activity area boundaries has been growing as a proportion of total projects. In 2004-05, 45% of potential dwellings in major residential redevelopment projects were within activity centre boundaries, compared to 54% in 2011-12.

In addition, the number of dwellings in major projects of four stories or greater in activity areas has been growing particularly fast. Between 2008-09 and 2011-12, the number of major projects of four stories or greater in activity areas has more than doubled, from 34,645 in 2008-09, to 78,170 in 2011-12.

Similarly, the potential number of dwellings in major residential redevelopment projects of four stories or greater outside of activity areas has also significantly increased in recent years. Again, this has more than doubled since 2008-09, from 14,690 in 2008-09, to 31,460 in 2011-12.

Chart 6: Potential Dwellings on Major Residential Redevelopment Projects inside/outside Activity Areas, 2004-05 to 2011-12

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Insi

de A

As

Out

side

AA

s

Insi

de A

As

Out

side

AA

s

Insi

de A

As

Out

side

AA

s

Insi

de A

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Out

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As

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Insi

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AA

s

Insi

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As

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AA

s

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

4+ Storeys

2-3 storeys

Attached 1 Storey

Detached

4+ Storeys

2-3 storeys

Attached 1 Storey

Detached

No.

of d

wel

lings

Note that 2012 boundaries have been used throughout so that the area remains constant across the period, although some boundaries have changed over this time.


3.0 BROADHECTARE RESIDENTIAL DEVELOPMENT

3.1 BROADHECTARE LOT CONSTRUCTIONJust over 11,000 broadhectare lots were constructed* in Melbourne’s growth area municipalities in 2011-12, below the average of around 12,000 per year over the period from 2001-02 to 2011-12.

Chart 7 shows that broadhectare lot construction declined by 30% in 2011-12, from 2010-2011. However, 2010-11 saw a record high in lot construction with over 16,000 lots constructed in the growth area municipalities.

The drop in lot construction was particularly significant in Wyndham and Melton, where the number of constructed lots halved in 2011-12 from the previous year. The Hume and Casey-Cardinia growth corridors saw the construction of more lots in 2011-12 than the previous year. These growth areas had the lowest percentage of ‘development ready’** land (land with a precinct structure plan approved) which may have stifled lot production during the boom. Supply of development ready land rebounded in the 2011-12 financial year which coincided with the release of precinct structure plans in these growth areas.

Chart 7: Broadhectare lot construction by growth area 2001-02 to 2011-12

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

Wyndham Whittlesea Melton Hume Casey-Cardinia

* Broadhectare lot construction, as defined by the Urban Development Program, is when a parcel of land has been subdivided, whether or not a title has been created, ready for a house to be built.

** ‘development ready’ applies to residential land that was zoned, prior to the introduction of the Urban Growth Zone (UGZ), to allow for residential development to occur; as well as land which has had an UGZ applied to it and a precinct structure plan subsequently approved.


3.2 LOT SIZE PROFILEChart 8 shows recent changes in the size of lots being constructed in growth areas. In 2005-06, just 25% of broadhectare lots produced in growth areas were sized 300-500 square meters, but in 2011-12, over 50% of all lots constructed were sized 300-500 square meters.

Chart 8: Broadhectare lot construction, by lot size (in square metres) 2005-06 to 2011-12

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

800-1000 650-800 500-650 300-500 0-300

Lot size (in square metres)


3.3 BROADHECTARE LOT SUPPLY As at July 2012, there were approximately 374,500 potential lots on broadhectate land identified for residential development across the Melbourne’s growth areas. These are fairly even distributed across each of the growth areas, with: 87,400 potential lots to the north-west in Hume/Mitchell; 86,000 within the Wyndham Growth Area; 80,000 in Melton Growth Area; and 78,700 within the Casey-Cardinia Growth Area to the south-east of Melbourne. Whittlesea Growth Area has the potential for around 42,600 residential lots on broadhectare land.

In June 2012 6,000 hectares of additional land was included within the urban growth boundary following the report of the Logical Inclusions Advisory Committee. These areas are not included in this release of the Urban Development Program, and will be added after the Growth Areas Authority have undertaken preliminary planning and it is possible to estimate lot yield.

Chart 9 shows the total lot supply as identified in the last seven years of Urban Development Program data by growth corridor.

Chart 9: Broadhectare lot supply by growth area 2005-06 to 2011-12

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Wyndham

Tota

l lot

sup

ply

iden

tifie

d by

Urb

an D

evel

opm

ent P

rogr

am

Whittlesea Melton Hume Mitchell Casey Cardinia


3.4 DEVELOPMENT READY SUPPLY OF BROADHECTARE LOTSFollowing the completion of multiple precinct structure plans by the Growth Areas Authority the amount of land that is PSP approved (i.e. development ready) has increased from 80,400 lots in 2009-10 to 147,000 lots in 2011-12. As at July 2012, 40% of total broadhectare lot supply was development ready.

As the Growth Areas Authority continues to implement the PSP schedule, more land will move into the PSP approved category.

Chart 10 shows the total lot supply as identified in the last seven years of Urban Development Program data by development status.

Chart 10: Lot supply by development ready status 2004-05 to 2011-12

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

PSP required PSP approved

Lot s

uppl

y

Note that Sunbury, in the City of Hume, and some areas in the south of Mitchell Shire are now included in the growth areas, following the 2010 expansion of the Urban Growth Boundary.


4.0 INDUSTRIAL LAND

The zoning, supply and consumption of industrial land is monitored using zoning maps, cadastral base and aerial photography. The Urban Development Program reports on:

• Change in zoning of industrial land;

• Rezoning of industrial land to other uses;

• Supply of vacant industrial land; and

• Consumption of industrial land, where vacant industrial land is developed for some form of use such as a building, car park, storage area, etc.

The use of industrial land is dynamic, with large developments occurring in major industrial nodes on the fringe of the city, redevelopment for employment uses in some middle and inner suburbs, and rezoning of land from industrial for other uses across metropolitan Melbourne.

The definition of industrial land used in this report includes the following:

• Industrial 1, 2 and 3 Zones;

• Business 3 Zone;

• Special Use 2, 4, and 5 Zones in the City of Hobsons Bay and Special Use 1 Zone in the Shire of Mornington Peninsula;

• Comprehensive Development Zone 2 in the City of Hume, Comprehensive Development Zone 2 in the City of Whittlesea and Comprehensive Development Zone 3 in the City of Greater Dandenong;

• Land within the Melbourne and Moorabbin Airport Business Parks; and

• Urban Growth Zone land identified as industrial in the Truganina Employment Area Precinct Structure Plan, Cranbourne West Precinct Structure Plan, Cardinia Road Employment Precinct Structure Plan and land identified as future industrial in a number of previous strategic planning documents.

In July 2013 the Victorian Government introduced a suite of new commercial and industrial zones. These new commercial and industrial zones will provide greater flexibility and growth opportunities for Victoria. The new zones respond to changing retail, commercial and industrial markets by allowing for a wider range of uses that will support more mixed use employment.

There are some 6,780 hectares of unzoned land that has been identified through the growth corridor plans and previous strategic plans which is not included as industrial land in the Urban Development Program. This land will be included in the Urban Development Program once structure planning has been undertaken and approved for these areas and the land becomes available for industrial development.


Table 1: Summary of gross zoned industrial land supply and total stock (ha), 2012.

Occupied Supply TotalBrimbank 1,610 507 2,117Hobsons Bay 1216 432 1,648Maribyrnong 488 40 528Melton 388 913 1,301Moonee Valley 53 1 53Wyndham 1,477 983 2,460Melton Node 297 406 703West Node 2,759 1,842 4,600West Region 5,231 2,876 8,108 Banyule 115 3 118Darebin 279 14 293Hume 1,799 1,245 3,044Moreland 264 10 274Nillumbik 30 0 30Whittlesea 659 295 954Airport Node 425 231 656North Node 1,593 1,243 2,836North Region 3,145 1,567 4712 Bayside 74 2 76Cardinia 402 364 767Casey 551 284 835Frankston 293 75 369Glen Eira 31 0 32Greater Dandenong 2,029 882 2,911Kingston 1,156 142 1,299Mornington Peninsula 2,114 1,112 3,226Pakenham Node 342 338 680South Node 2,270 1,155 3,426South Region 6,652 2,862 9,514 Boroondara 17 0 18Knox 718 90 808Manningham 13 0 13Maroondah 393 65 457Monash 700 15 716Stonnington 4 0 4Whitehorse 183 13 196Yarra Ranges 290 30 320East Region 2,319 213 2,531 Melbourne 325 10 335Port Phillip 14 0 14Yarra 133 1 134Inner Region 472 11 483

Metropolitan Melbourne 17,819 7,529 25,347


4.1 NET CHANGE IN INDUSTRIAL ZONED LANDBetween 2000-01 and 2011-12, there has been a net increase of 3,570 hectares of land zoned for industrial use across metropolitan Melbourne. Most of this additional zoned land was added to the four largest industrial nodes: the Pakenham Node in Cardinia; the North Node in Hume and Whittlesea; the South Node in Greater Dandenong; and the West Node in Brimbank, Hobsons Bay, Melton and Wyndham (see Chart 11).

There are some 6,780 hectares of unzoned land that has been identified through the growth corridor plans and previous strategic plans. Of this there are 1,950 hectares in Melton, 1,770 hectares in Whittlesea, 1,150 hectares in Cardinia, 690 hectares in Wyndham, 680 hectares in Hume and 290 hectares in Casey. There is also 250 hectares identified in the growth area portion of Mitchell. These areas will be undergoing further planning processes, such as structure planning, before they are ‘development ready’ and included as industrial land in the Urban Development Program.

Chart 11: Change of industrially zoned land by municipality, 2000-01 to 2011-12

-400

-200

0

200

400

600

800

1000

WYNDHAM

GREATER D

ANDENONG

HUME

MELT

ON

CARDINIA

CASEY

W

HITTLESEA

STONNINGTON

BOROONDARA

HOBSONS BAY

MANNINGHAM

MORNIN

GTON PENIN

SULA

BRIMBANK

NILL

UMBIK

KNOX

BANYULE

GLE

N EIR

A

BAYSIDE

WHITEHORSE

MAROONDAH

MOONEY V

ALLEY

YARRA RANGES

MELB

OURNE

FRANKSTON

KINGSTON

YARRA

DAREBIN

MONASH

MORELAND

MARIBYRNONG

PORT PHILL

IP

Hec

tare

s

Municipality

Industrially zoned land

Note that this chart includes all land that is zoned for industrial purposes, as well as land which has had an Urban Growth Zoned applied to it, and a precinct structure plan subsequently approved.

While some Local Government Areas have seen major rezoning of land for industrial uses, almost all municipalities in the metropolitan area have experienced some rezoning of industrial land to some other form of use. For example, in Brimbank, 173 hectares of industrial land was rezoned from 2000-01 and 2011-12 for a range of purposes such as residential or conservation and drainage uses, but this was offset by the amount of land that was rezoned to industrial from other uses, particularly agricultural land within the west industrial node. The result was a net increase in industrially zoned land in Brimbank of 88 hectares between 2000-01 and 2011-12.


4.2 THE SCALE AND SPATIAL DISTRIBUTION OF INDIVIDUAL REZONINGSThere are two broad trends in the zoning of industrial land.

There are relatively few zonings to industrial land although they tend to be very large in area. This can be seen in Map 1 with major rezoning in the west, north, south and Officer/Pakenham nodes. Most of the land zoned to industrial between 2000-01 and 2011-12 was part of strategic planning processes.

There have been a large number of zonings from industrial, however they have tended to be small. Around 80% of rezonings from industrial were between 100m2 to 5 hectares. An exception to this was the zoning of 225 hectares of industrial land to create the Fishermans Bend urban renewal area in Port Phillip and the City of Melbourne.

Map 1: Location of changes in industrial land, 2000-01 to 2011-12

* The positive numbers are addition to industrial land while negative numbers are land zoned from industrial to another type of use.


4.3 REZONING OF INDUSTRIAL LAND FOR OTHER USESIn the established parts of Melbourne there has generally been a decrease in the amount of zoned industrial land. This has been particularly pronounced in Maribyrnong and Moreland, where many manufacturing firms closed down individual locations in the 1990s and 2000s (e.g. Modern Maid, National Forge, Olympic Tyres, Tontine, and Kodak) leaving a number of large sites.

Of the 1,390 hectares of industrial land zoned from industrial for other uses between 2000-01 and 2011-12, just over half has been zoned residential or mixed use (see Figure 13). Some industrial land – mostly in the inner and middle parts of Melbourne - was rezoned to commercial uses to reflect the current character or intended future use of some locations. Some industrial land was also rezoned to provide land for transport infrastructure in this period, particularly in the outer suburbs and growth areas, and some industrial land has also been rezoned for conservation purposes, drainage reserves and other uses within the industrial nodes.

Chart 12: Percentage area of land by new zoning after being rezoned from industrial, metropolitan Melbourne, 2000-01 to 2011-12

Mixed Use 24%

Commercial 21%

Transport 8%

Residential 31%

Other 3%

$Conservation, Open Space, Recreation 11%

Public Use 2%

Most (90%) of the 4,960 hectares of land zoned for industrial purposes was previously zoned for rural purposes with smaller shares from conservation, open space and recreation uses (3%), other uses (3%), public use (1%) Commonwealth purposes (1%) and commercial uses (1%).


4.4 VACANT INDUSTRIAL LANDThere are 25,350 hectares of industrially zoned land across metropolitan Melbourne with 7,530 hectares of that being vacant. Nearly seventy percent of the vacant industrial land (5,210 hectares) is located within the industrial nodes (Figure W). These figures do not include the 6,780 hectares of unzoned land that has been identified through the growth corridor plans and previous strategic plans which is not included as industrial land in the Urban Development Program. This land will be included in the Urban Development Program once structure planning has been undertaken and approved for these areas and the land becomes available for industrial development.

Of the vacant industrial land in the Rest of Melbourne, 1,040 hectares is located around the Port of Hastings. The remainder of the land in the Rest of Melbourne is within a number of smaller industrial precincts across metropolitan Melbourne, particularly in the eastern and south eastern municipalities of Kingston, Knox, Frankston and Maroondah as well as in Maribyrnong in the West.

Chart 13: Location of vacant zoned industrial land by Industrial Node, July 2012

Airport Node

3%

Melton Node 5%

North Node 17%

Pakenham Node 5%

South Node 15%

West Node 24%

Rest of Melbourne 31%


4.5 CONSUMPTION OF INDUSTRIAL LANDIndustrial land consumption (Chart 14) declined significantly as a result of the Global Financial Crisis, and has only just started to pick up again in 2011-12. Prior to the Global Financial Crisis, metropolitan Melbourne experienced its highest level of development (330 hectares) for the decade from 2004.

Figure 14: Average annual consumption of industrial land, metropolitan Melbourne, 2004-05 to 2011-12

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50

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300

350

2004/05 to 2005/06

2005/06 to 2006/07

2006/07 to 2007/08

2007/08 to 2008/09

2008/09 to 2009/10

2009/10 to 201011

2010/11 to 2011/12

Hec

tare

s

Average annual consumption 2004/05 to 2011/2012


4.6 SPATIAL DISTRIBUTION OF INDUSTRIAL LAND CONSUMPTIONConsumption of industrial land outside of the industrial nodes has declined in relative importance. Between 1995 and 2000, nearly half of Melbourne’s consumption occurred outside of the industrial nodes - currently over 80% of industrial land consumption occurs within the industrial nodes (see Chart 15). This decline in the level of consumption outside of the nodes is due to the increasing scarcity of vacant industrial land in the established parts of Melbourne as well as the attractiveness of land in the industrial nodes which have high quality transport connections, a range of lot sizes and building types.

Chart 15: Comparison of consumption occurring within the nodes and the rest of Melbourne, 1995 to 2000 and 1995 to 2012

Industrial Nodes 52%

Rest of Melbourne

48%

1995 to 2000

Industrial Nodes 77%

Rest of Melbourne

23%

2000 to 2012

Recent consumption activity in the industrial nodes demonstrates a high degree of volatility in the industrial land market (Chart 16). The West Node is close to levels of consumption it experienced before the global financial crisis. The South Node, after a number of years of relatively low levels of consumption, recorded a significant increase in 2011-12. The remainder of the industrial nodes are still experiencing levels of consumption below those prior to the global financial crisis.

Figure 16: Annual average consumption of industrial land, industrial nodes, 2004-05 to 2011-12

-20

0

20

40

60

80

100

120

West Node Melton Node Airport Node North Node South Node Pakenham Node

Hec

tare

s

Industrial Node

2004-05 to 2005-06 2005-06 to 2006-07 2006-07 to 2007-08 2007-08 to 2008-09 2008-09 to 2009-10 2009-10 to 2010-11 2010-11 to 2011-12


Meanwhile, some industrial areas in the established parts of metropolitan Melbourne, particularly in the City of Melbourne, Monash, and Maribyrnong, have been undergoing renewal. This might involve the demolition of one large redundant industrial building and the construction of a number of smaller premises, as happened in the precinct on Stubbs Road, Kensington, or the development of new specialised premises, such as the Melbourne Seafood Centres in Kensington Road, Kensington. These new premises provide space for a range of users including ‘traditional’ industrial users, such as mechanics, wholesalers, etc, as well as non-industrial uses such as childcare centres and office based businesses.


Appendix 1: Future broadhectare lot construction potential

SLA/LGA/Region

Recent Development (lots) Future Supply

Con

stru

cted

20

10/1

1

Con

stru

cted

20

11/1

2

Und

er

cons

truc

tion

2011

/12

Rec

ent

Dev

elop

men

t (%

Met

ro)

PSP

-

Appr

oved

Urb

an G

row

th

Zone

(PSP

R

equi

red)

PSP

Ap

prov

ed %

(%

)

Tota

l Lot

s

Tota

l H

ecta

res

Brimbank 671 0 0 2% 138 0 100% 138 5Melton 2,925 796 3,384 16% 38,833 40,978 49% 79,811 6,845Melton (S) - Balance 2,203 150 2,612 11% 35,745 36,733 49% 72,478 6,003Melton (S) - East 722 646 772 5% 3,088 4,245 42% 7,333 842Wyndham 4,503 2,054 2,344 20% 17,050 68,886 20% 85,936 7,551West Region 8,099 2,850 5,728 38% 56,021 109,864 34% 165,885 14,401Banyule 0 0 0 0% 103 0 100% 103 13Hume 1,365 1493 1285 9% 25796 26602 49% 52,398 5109Hume (C) - Craigieburn 1254 1295 1077 8% 23,634 6,365 79% 29,999 2,571Hume (C) - Sunbury 111 198 208 1% 2,162 20237 10% 22,399 2,538Mitchell (C) - South 0 0 0 0% 8,571 26436 24% 35,007 3,411Nillumbik 59 0 130 0% 917 0 100% 917 128Whittlesea 4,274 2,664 1,963 20% 16,744 25,922 39% 42,666 3,776North Region 5,698 4,157 3,378 30% 52,131 78,960 40% 131,091 12,437Cardinia 1,346 1,623 920 9% 17,693 0 100% 17,693 1,492Casey 2,236 2,395 2,836 17% 22,220 38,808 36% 61,028 5,846Frankston 790 346 394 3% 1,803 0 100% 1,803 130Greater Dandenong 386 380 367 3% 2253 0 100% 2,253 170Kingston 0 0 0 0% 32 0 100% 32 2Mornington Peninsula 218 67 43 1% 3,151 0 100% 3,151 387South Region 4,976 4,811 4,560 32% 47,152 38,808 55% 85,960 8,027Knox 32 12 0 0% 100 0 100% 100 10Manningham 0 0 0 0% 70 0 100% 70 18Yarra Ranges 108 46 0 0% 618 0 100% 618 72East Region 140 58 0 0% 788 0 100% 788 100

Growth Areas 16,649 11,025 12,732 91% 146,907 227,632 39% 374,539 34,030Metropolitan Melbourne 18,913 11,876 13,666 100% 156,092 227,632 41% 383,724 34,965


Appe

ndix

2: M

ajor

rede

velo

pmen

t site

s ov

ervi

ew

SLA/

LGA/

Reg

ion

“Com

plet

ions

20

10 to

201

1”“U

nder

Con

stru

ctio

n”“C

onst

ruct

ion

0-2

year

s”“C

onst

ruct

ion

3-5

year

s”“P

ossi

ble

Con

stru

ctio

n 6-

10 y

ears

“To

tal I

dent

ified

Sup

ply

% D

istr

ibut

ion

of T

otal

Su

pply

Dw

ellin

gsP

roje

cts

Dw

ellin

gsP

roje

cts

Dw

ellin

gsP

roje

cts

Dw

ellin

gsP

roje

cts

Dw

ellin

gsw

wP

roje

cts

Dw

ellin

gsP

roje

cts

Dw

ellin

gsP

roje

cts

Bri

mba

nk59

14

1,05

15

507

81,

128

1073

87

3,42

430

2%1%

Hob

sons

Bay

166

521

56

158

576

611

3,04

35

4,18

227

2%1%

Mar

ibyr

nong

2,02

131

1,79

223

1,07

917

5618

6211

,013

2019

,502

122

12%

6%M

elto

n10

25

00

101

368

80

037

89

0%0%

Moo

nee

Valle

y27

710

1,87

09

383

141,

305

2437

011

3,92

858

2%3%

Wyn

dham

695

572

65

833

101,

640

1416

92

3,36

831

2%1%

Wes

t Reg

ion

3,85

260

5,65

448

2,97

055

1082

512

915

,333

4534

,782

277

21%

13%

Ban

yule

502

1917

26

290

1398

531

650

222,

097

721%

3%D

areb

in85

225

233

611

87

3,45

859

1,83

120

5,64

092

3%4%

Hum

e41

380

126

26

725

914

11,

081

171%

1%M

orel

and

1,31

718

2,40

07

1,06

824

3,21

371

2,23

416

8,91

511

85%

6%N

illum

bik

00

00

492

695

00

118

70%

0%W

hitt

lese

a1,

559

1016

32

1129

631

312

01

1,60

521

1%1%

Nor

th R

egio

n4,

271

753,

048

222,

916

588,

763

187

4,72

960

19,4

5632

712

%16

%B

aysi

de38

515

852

1288

916

770

925

53

2,76

640

2%2%

Car

dini

a55

30

032

212

07

00

152

90%

0%C

asey

994

236

357

36

217

1370

38

1,72

930

1%1%

Fran

ksto

n35

194

222

66

445

1724

33

1,00

828

1%1%

Gle

n Ei

ra36

421

460

1732

512

1,54

058

1,20

01

3,52

588

2%4%

Gre

ater

Dan

deno

ng66

315

1,08

24

357

171,

454

6132

85

3,22

187

2%4%

Kin

gsto

n65

117

853

930

215

457

231,

847

233,

459

702%

3%M

orni

ngto

n P

enin

sula

533

1922

29

140

837

720

267

111,

006

481%

2%So

uth

Regi

on2,

785

953,

799

562,

844

825,

380

208

4,84

354

16,8

6640

010

%19

%B

oroo

ndar

a66

912

1,42

59

1006

321,

802

531,

713

465,

946

140

4%7%

Kno

x56

019

837

419

39

1,25

751

1,18

310

3,47

074

2%4%

Man

ning

ham

791

1217

54

265

82,

564

292,

874

235,

878

643%

3%M

aroo

ndah

1,07

514

842

415

1898

430

152

21,

635

521%

2%M

onas

h35

215

518

375

514

1,14

338

596

123,

012

672%

3%St

onni

ngto

n (C

) - M

alve

rn33

18

961

174

593

039

184

61,

384

511%

2%W

hite

hors

e46

713

661

863

216

2,06

756

976

54,

336

853%

4%Ya

rra

Ran

ges

564

299

732

48

498

63,

212

64,

333

273%

1%Ea

st R

egio

n4,

301

974,

095

383,

764

110

11,2

4530

210

,890

110

29,9

9456

018

%27

%M

elbo

urne

7,60

771

9,42

645

8,21

853

22,6

9813

74,

486

2744

,828

262

27%

12%

Por

t Phi

llip

928

292,

817

311,

196

291,

451

821

25,

485

703%

3%St

onni

ngto

n (C

) - P

rahr

an1,

247

1456

02

1,51

317

3,43

255

927

136,

432

874%

4%Ya

rra

1,86

618

1,66

816

3,40

947

3,14

535

1,97

820

10,2

0011

86%

6%In

ner

Regi

on11

,648

132

14,4

7194

14,3

3614

630

,726

235

7,41

262

66,9

4553

740

%26

%

Met

ropo

litan

Mel

bour

ne26

,857

459

31,0

6725

826

,830

451

66,9

391,

061

43,2

0733

116

8,04

32,

101

100%

100%


Appe

ndix

3: G

ross

zon

ed in

dust

rial

land

sup

ply

and

tota

l sto

cks

(ha)

SLA/

LGA/

Nod

e/R

egio

nIn

dust

rial

1 Z

one

Indu

stri

al 2

Zon

eIn

dust

rial

3 Z

one

Bus

ines

s 3

Zone

Spec

ial U

se Z

one

Airp

ort B

usin

ess

Par

k Zo

neC

ompr

ehen

sive

D

evel

opm

ent Z

one

Urb

an G

row

th Z

one

All z

oned

land

Supp

lyO

ccup

ied

Supp

lyO

ccup

ie3d

Supp

lyO

ccup

ied

Supp

lyO

ccup

ied

Supp

lyO

ccup

ied

Supp

lyO

ccup

ied

Supp

lyO

ccup

ied

Supp

lyO

ccup

ied

Supp

lyO

ccup

ied

Bri

mba

nk20

379

893

543

207

252

417

00

00

00

00

507

1,61

0H

obso

ns B

ay80

464

00

4868

00

304

684

00

00

00

432

1,21

6M

arib

yrno

ng28

306

00

810

04

830

00

00

00

040

488

Mel

ton

331

960

022

167

567

00

00

00

304

213

913

384

Moo

nee

Valle

y0

140

00

280

110

00

00

00

01

53W

yndh

am3

3927

31,

038

223

237

00

00

00

00

484

162

983

1,47

6Ai

rpor

t Ind

ustr

ial N

ode

Mel

ton

Indu

stri

al N

ode

102

861

304

210

406

297

Wes

t Ind

ustr

ial N

ode

430

267

364

1,57

820

518

556

730

355

848

416

21,

842

2,75

8W

est R

egio

n64

61,

717

367

1,58

170

775

164

118

304

684

00

00

788

375

2,87

65,

227

Ban

yule

051

00

358

06

00

00

00

00

311

5D

areb

in2

109

00

1216

80

20

00

00

00

014

279

Hum

e15

91,

147

00

8625

140

432

40

018

176

415

10

01,

245

1,79

9M

orel

and

816

40

02

820

170

00

00

00

010

264

Nill

umbi

k0

0.0

00.

00

29.8

00.

00

0.0

00.

00

0.0

00.

00

29.8

Whi

ttle

sea

9551

50

029

4037

210

00

013

483

00

295

659

Airp

ort I

ndus

tria

l Nod

e31

173

02

2117

817

972

231

425

Nor

th In

dust

rial

Nod

e22

11,

140

8620

238

716

655

084

1,24

41,

593

Nor

th R

egio

n26

31,

986

00

132

629

441

369

00

181

7655

084

00

1,56

73,

145

Bay

side

00

00

00

274

00

00

00

00

274

Car

dini

a28

516

40

00

00

00

00

00

080

238

364

402

Cas

ey55

305

00

222

541

00

00

00

222

183

284

551

Fran

ksto

n75

293

00

00

00

00

00

00

00

7529

3G

len

Eira

011

00

09

011

00

00

00

00

031

Gre

ater

Dan

deno

ng67

91,

290

4222

612

843

1444

40

00

00

00

087

62,

035

Kin

gsto

n80

984

00

05

472

00

5896

00

00

142

1,15

6M

orni

ngto

n P

enin

sula

00

00

7525

90

01,

037

1,85

50

00

00

01,

112

2,11

4P

aken

ham

Indu

stri

al N

ode

258

104

8023

833

834

2So

uth

Indu

stri

al N

ode

731

1,43

742

226

128

4314

356

222

183

1,15

02,

276

Sout

h Re

gion

1,17

53,

047

4222

620

533

725

643

1,03

71,

855

5896

00

301

421

2,85

66,

657

Bor

oond

ara

00

00

00

017

00

00

00

00

017

Kno

x40

548

00

00

5017

00

00

00

00

090

718

Man

ning

ham

013

.10

0.0

00.

00

0.0

00.

00

0.0

00.

00

0.0

013

.1M

aroo

ndah

6236

40

03

170

120

00

00

00

065

393

Mon

ash

328

30

00

012

417

00

00

00

00

1570

0St

onni

ngto

n (C

) - M

alve

rn0

0.0

00.

00

3.8

00.

00

0.0

00.

00

0.0

00.

00

3.8

Whi

teho

rse

812

30

05

550

60

00

00

00

013

183

Yarr

a R

ange

s24

225

00

663

02

00

00

00

00

3029

0Ea

st R

egio

n13

61,

556

00

1413

863

625

00

00

00

00

213

2,31

9M

elbo

urne

424

80

01

136

630

00

00

00

010

325

Por

t Phi

llip

01

00

02

011

00

00

00

00

014

Yarr

a0

310

00

150

880

00

00

00

01

133

Inne

r Re

gion

428

00

01

306

162

00

00

00

00

1147

2

All I

ndus

tria

l Nod

es1,

772

3,20

740

61,

804

419

434

478

707

303

558

179

7255

084

1,08

979

35,

209

7,69

1M

etro

polit

an M

elbo

urne

2,22

48,

587

408

1,80

71,

059

1,88

560

01,

917

1,34

12,

540

239

172

550

841,

089

796

7,52

317

,819


Appendix 4: Estimated stock of zoned vacant industrial land stocks (net developable area) (ha)

SLA/LGA/Node/Region Indu

stri

al 1

Zon

e

Indu

stri

al 2

Zon

e

Indu

stri

al 3

Zon

e

Bus

ines

s 3

Zone

Spec

ial U

se Z

one

Airp

ort B

usin

ess

Par

k Zo

ne

Com

preh

ensi

ve

Dev

elop

men

t Zo

ne

Urb

an G

row

th

Zone

All z

oned

land

Brimbank 114 61 174 3 0 0 0 0 352Hobsons Bay 66 0 41 0 146 0 0 0 253Maribyrnong 25 0 8 4 0 0 0 0 36Melton 221 0 197 47 0 0 0 206 670Moonee Valley 0 0 0 0 0 0 0 0 1Wyndham 3 181 87 0 0 0 0 305 576Airport Industrial Node 25 0 18 149 192Melton Industrial Node 82 206 288West Industrial Node 246 240 61 47 145 305 1,044West Region 428 243 508 54 146 0 0 511 1,888Banyule 0 0 3 0 0 0 0 0 3Darebin 2 0 11 0 0 0 0 0 12Hume 113 0 63 212 0 151 316 0 854Moreland 7 0 2 0 0 0 0 0 9Nillumbik 0 0 0 0 0 0 0 0 0Whittlesea 80 0 24 32 0 0 109 0 245Airport Industrial Node 25 0 18 149 192North Industrial Node 163 61 198 425 847North Region 202 0 102 244 0 151 425 0 1,124Bayside 0 0 0 2 0 0 0 0 2Cardinia 242 0 0 0 0 0 0 68 310Casey 46 0 2 5 0 0 0 176 229Frankston 73 0 0 0 0 0 0 0 73Glen Eira 0 0 0 0 0 0 0 0 0Greater Dandenong 519 34 80 12 0 0 0 0 656Kingston 73 0 0 4 0 50 0 0 126Mornington Peninsula 0 0 70 0 893 0 0 0 963Pakenham Industrial Node 219 68 286South Industrial Node 561 34 80 11 176 874South Region 952 34 152 22 893 50 0 244 2,358Boroondara 0 0 0 0 0 0 0 0 0Knox 35 0 0 43 0 0 0 0 78Manningham 0 0 0 0 0 0 0 0 0Maroondah 53 0 2 0 0 0 0 0 56Monash 3 0 0 10 0 0 0 0 13Stonnington (C) - Malvern 0 0 0 0 0 0 0 0 0Whitehorse 7 0 4 0 0 0 0 0 11Yarra Ranges 20 0 5 0 0 0 0 0 26East Region 119 0 12 54 0 0 0 0 184Melbourne 4 0 1 5 0 0 0 0 9Port Phillip 0 0 0 0 0 0 0 0 0Yarra 0 0 0 0 0 0 0 0 1Inner Region 4 0 1 6 0 0 0 0 10

All Industrial Nodes 1,322 275 202 291 145 298 425 754 3,722Metropolitan Melbourne 1,704 277 774 379 1,038 201 425 754 5,564


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