ity of melton rural lifestyle land supply and demand ... · housing affordability issues,...

M a y 2 0 1 8

City of Melton

Rural Lifestyle Land

Supply and Demand Assessment

Prepared for

City of Melton

by

Essential Economics Pty Ltd

Authorship

Report stage Author Date Review Date

Stage 1 – Interim draft report

Nick Brisbane Harriet Noall

2 August 2017 John Noronha City of Melton

3 August 2017 28 August 2017

Stage 1 – Final interim report

Harriet Noall 10 October 2017 Nick Brisbane 10 October 2017

Stage 2 – Draft report Nick Brisbane 4 December 2017 John Noronha City of Melton

4 December 2017 2 February 2018

Stage 2 – Draft report #2

Nick Brisbane 9 February 2018 John Noronha City of Melton

9 February 2018

7 March 2018

Stage 2 – Final report Nick Brisbane 1 May 2018

Disclaimer

Every effort has been made to ensure the accuracy of the material and the integrity of the analysis presented in this report. However, Essential Economics Pty Ltd accepts no liability for any actions taken on the basis of report contents.

Contact details

For further details please contact Essential Economics Pty Ltd at one of our offices:

96 Pelham Street Carlton Victoria 3053 Australia PH +61 3 9347 5255 FAX +61 3 9347 5355

Level 26 / 44 Market Street Sydney New South Wales 2000 Australia PH +61 2 9089 8654

EMAIL [email protected] WEB www.essentialeconomics.com

ABN 92 079 850 427

Our Reference: 17073

Contents

Introduction ........................................................................................................................ 1

PART A: DEMAND AND SUPPLY ASSESSMENT ....................................................................... 2

1 Context Analysis ........................................................................................................ 3 1.1 Regional Context ............................................................................................................................... 3 1.2 Study Area and Definition of ‘Rural Lifestyle’ Land ........................................................................... 5 1.3 Policy Context.................................................................................................................................... 7 1.4 Potential Constraints to Rural Residential Land Subdivision .......................................................... 15 1.5 Economic Context ........................................................................................................................... 17

2 Rural Lifestyle Land Supply Assessment .................................................................... 18 2.1 Total ‘Rural Lifestyle’ Zoned Land ................................................................................................... 18 2.2 Total Rural Lifestyle Vacant Lot Supply ........................................................................................... 18 2.3 Rural Lifestyle Lot Supply by Size .................................................................................................... 23 2.4 Potential Rural Lifestyle Lot Supply on Vacant Lots ........................................................................ 23 2.5 Potential Rural Lifestyle Lot Supply on Occupied Lots .................................................................... 24 2.6 Small Lot Potential on GWZ Land .................................................................................................... 25 2.7 Summary ......................................................................................................................................... 27

3 Market and Demand Assessment ............................................................................. 28 3.1 Residential Characteristics of Rural Lifestyle Areas ........................................................................ 28 3.2 Rural Lifestyle Property Market Overview ...................................................................................... 30 3.3 Recent Development Trends on Rural Lifestyle Land ..................................................................... 32 3.4 Demand and Supply Assessment: LDRZ Lots ................................................................................... 39 3.5 Demand and Supply Assessment: GWZ and GWAZ Lots ................................................................. 40 3.6 Conclusions ..................................................................................................................................... 40

4 Implications for Planning for Rural Lifestyle Land ...................................................... 41

PART B: STRATEGIC LAND USE ASSESSMENT ....................................................................... 42

5 Framework for Identifying Land for LDRZ-Type Residential Development .................. 43 5.1 Key Considerations .......................................................................................................................... 43 5.2 Key Principles for Assessing LDRZ Land ........................................................................................... 45

6 Options Assessment ................................................................................................. 47 6.1 Option 1: Rezoning/Reschedule GWZ land in Strathtulloh ............................................................. 47 6.2 Option 2: Rezone/Rescheduling GWAZ Land .................................................................................. 50 6.3 Option 3: Existing Melton East LDRZ Land ...................................................................................... 53 6.4 Option 4: Melton Township Interface Precinct ............................................................................... 56 6.5 Option 5: Do-nothing ...................................................................................................................... 58 6.6 Other Considerations ...................................................................................................................... 59 6.7 Conclusions ..................................................................................................................................... 59

C I T Y O F M E L T O N R U R A L L I F E S T Y L E L A N D S U P P L Y A N D D E M A N D A S S E S S M E N T

E s s e n t i a l E c o n o m i c s P t y L t d

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I N T R O D U C T I O N

Due to the significant growth that has occurred throughout the City of Melton in recent years, the need has arisen for an assessment of the availability of ‘rural lifestyle’ lots in the municipality. Demand for rural lifestyle areas which still offer proximity to the inner city has climbed rapidly in recent years, and this has prompted a review of the current and forecast supply and demand situation in the City of Melton.

Therefore, the City of Melton has commissioned Essential Economics to undertake and prepare a Rural Lifestyle Land Supply and Demand Assessment focussing on the City’s rural areas, namely land included in the following zones:

Low Density Residential Zone (LDRZ)

Green Wedge Zone (GWZ)

Green Wedge A Zone (GWAZ).

Council adopted studies, including the Western Plains North Green Wedge Management Plan 2014, recommended further work be undertaken to examine rural areas within the City of Melton to determine the potential for these areas to support additional subdivision.

In addition, landowners and developers are seeking changes to current planning controls; however, at present there is no strategic justification for the changes to be enacted. This study will provide a strategic basis to allow Council to respond to these requests, and provide Council with a way forward with regard to planning for rural ‘lifestyle’ living in the City of Melton. The study also responds to recommendations arising from the Western Plains North Green Wedge Management Plan (2014).

The project has been undertaken in the following two stages:

1 Stage One (demand and supply assessment): which examines the overall supply and demand situation for rural lifestyle areas in the City of Melton. The Stage One Interim Report was finalised in October 2017 and is presented in Part A of this Report.

Arising from the Stage One findings was the need to identify an adequate response to the exiting and forecast demand for Low Density Residential Zoned (LDRZ) land, or land that provides a similar development outcome.

2 Stage Two (strategic land use assessment): which examines the appropriate location for LDRZ (or land that provides a similar outcome) having regard to the constraints, planning requirements, location of the urban growth boundary, environmental constraints, market preferences, etc. This assessment is presented in Part B of this Report.



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PA R T A : D E M A N D A N D S U P P LY A S S E S S M E N T

Stage One (demand and supply assessment) of the project examines the overall supply and demand situation for rural lifestyle areas in the City of Melton. This analysis is presented in Part A of this report.

The following information is provided in Part A:

Chapter 1: Context Analysis: Provides an overview of the regional location, the study area and the definition of ‘rural lifestyle’ land used in this assessment, and an overview of policy and economic contexts.

Chapter 2: Rural Lifestyle Land Supply Assessment: Provides an analysis of the rural lifestyle land and lot supply.

Chapter 3: Market and Demand Assessment: Provides an overview of existing market conditions for rural lifestyle living in the City of Melton, and an assessment of the demand and supply situation.

Chapter 4: Implications: Identifies key implications arising from the analysis in the report for consideration for Council.



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1 C O N T E X T A N A LYS I S

This Chapter provides an overview of the regional location, the study area and the definition of ‘rural lifestyle’ land used in this assessment, and an overview of the policy and economic contexts.

1.1 Regional Context

The City of Melton is located approximately 50 kilometres west of the Melbourne CBD and forms part of the western Melbourne urban growth corridor where significant urban development is planned over the coming decades.

The Western Freeway dissects the municipality and connects the urban areas of Melton in the west to Caroline Springs and adjoining suburban areas in the east. The corridor of land between Melton and Caroline Springs is zoned for urban development.

Beyond this corridor, smaller townships/settlements exist including Diggers Rest and the small settlement of Toolern Vale to the north, and Eynesbury to the south. Beyond these areas are large tracts of rural land, a proportion of which is in the Green Wedge Zone (GWZ).

The City’s interface with the Urban Growth Boundary (UGB) limits residential development. The application of the GWZ protects local biodiversity and creates a buffer between urban areas and settlements.

Neighbouring municipalities include the largely urban municipalities of Hume, Wyndham and Brimbank to the east, north and south. Macedon Ranges Shire to the north and Moorabool Shire to the west are both regional municipalities that adjoin the City of Melton. In the context of rural lifestyle areas, Macedon Ranges and Moorabool Shire are well established markets for low density and rural living. These Shire’s have a more regional focus as they are located beyond the UGB and provide a greater extent of land for rural and lifestyle living.

Figure 1.1 shows the regional location of the City of Melton. The Figure also shows the extent of zoned land that could accommodate rural lifestyle living including the following zones:

Low Density Residential Zone (LDRZ)


Green Wedge A Zone (GWAZ).

Rural Living Zone (RLZ).



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Figure 1.1: Regional Context

Prepared by Essential Essential Economics using MapInfo, StreetPro and BingMaps



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1.2 Study Area and Definition of ‘Rural Lifestyle’ Land

The study area comprises of the land within the City of Melton that is in the Green Wedge (GWZ), Green Wedge A Zone (GWAZ) and Low Density Residential Zone (LDRZ). For the purpose of this assessment, ‘rural lifestyle’ land refers to land within these zones.

An overview of these zones and the lots sizes they provide for is provided in Section 1.3.

The study area and land referred to as ‘rural lifestyle’ land is shown in Figure 1.2.



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Figure 1.2: Study Area and Rural Lifestyle Land

Source: Essential Economics using MapInfo and Bingmaps



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1.3 Policy Context

The following provides an overview of the relevant planning policy context with regard to rural lifestyle land in the City of Melton.

Plan Melbourne and State Planning Policy Framework

Plan Melbourne

Plan Melbourne 2017-2050 represents the planning strategy for Melbourne over the period to 2050 and seeks to respond to the key challenges facing planning and development including accommodating population growth, remaining competitive in a changing economy, addressing housing affordability issues, responding to climate change, and providing essential infrastructure.

Plan Melbourne provides the following directions that are particularly relevant to green wedge land:

Direction 1.4: Support the productive use of land and resources in Melbourne’s non-urban areas. The Plan states that agricultural production in green wedges and peri-urban areas is vital to Melbourne’s long-term food security due to its proximity to markets, and this land should a retained for productive use so that it is not permanently lost.

Direction 4.5: Plan for Melbourne’s green wedge and peri-urban areas. As Melbourne grows, planning for Melbourne’s green wedges and peri-urban areas is required to:

- protect biodiversity assets, including national and state parks, Ramsar wetlands and coastal areas

- support existing and potential agribusiness activities, forestry, food production and tourism

- protect major state infrastructure and resource assets, including water supply dams and water catchments and waste management and recycling facilities

- support renewable energy sources such as wind and solar farms

- protect extractive industries

- provide a recreational resource, which contributes to public health outcomes for all Victorians.

These valued features, assets and industries should be prioritised before other land uses. Plan Melbourne seeks to “manage rural living to prevent negative impacts on agriculture, biodiversity and landscape values.” (p. 91)

Plan Melbourne identifies the use of Council adopted Green Wedge Management Plans as a planning tool to protect and manage green wedge areas. To this extent, City of Melton has already adopted the Western Plains South Green Wedge Management Plan (refer later in this sections) and is planning to undertake the Western Plains North Green Wedge Management Plan in the near future.



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State Planning Policy Framework

State Planning Policy Framework (SPPF) within the Melton Planning Scheme identifies the following key Clauses relevant to this study.

Clause 11.06-7 Green Wedges

Objective: To protect the green wedges of Metropolitan Melbourne from inappropriate development.

Strategies:

Ensure strategic planning and land management of each green wedge area to promote and encourage its key features and related values.

Support development in the green wedge that provides for environmental, economic and social benefits.

Consolidate new residential development within existing settlements and in locations where planned services are available and green wedge area values can be protected.

Plan and protect major state infrastructure and resource assets that serve the wider Victorian community, such as airports and ports with their associated access corridors, water supply dams and water catchments and waste management and recycling facilities.

Protecting important productive agricultural areas such as Werribee South, the Maribyrnong River flats, the Yarra Valley, Westernport and the Mornington Peninsula.

Support existing and potential agribusiness activities, forestry, food production and tourism.

Protect areas of environmental, landscape and scenic value such as biodiversity assets, national and state parks, Ramsar wetlands and coastal areas.

Protect significant resources of stone, sand and other mineral resources for extraction purposes. Provide opportunities for renewable energy generation.

Clause 16.02-1 Rural Residential Development

Objective: To identify land suitable for rural living and rural residential development.

Strategies:

Manage development in rural areas to protect agriculture and avoid inappropriate rural residential development.

Encourage the consolidation of new housing in existing settlements where investment in physical and community infrastructure and services has already been made.



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Demonstrate need and identify locations for rural residential development through a housing and settlement strategy.

Ensure planning for rural living avoids or significantly reduces adverse economic, social and environmental impacts by:

- Maintaining the long-term sustainable use and management of existing natural resource attributes in activities including agricultural production, water, mineral and energy resources.

- Protecting existing landscape values and environmental qualities such as water quality, native vegetation, biodiversity and habitat.

- Minimising or avoiding property servicing costs carried by local and State governments.

- Discouraging development of isolated small lots in rural zones from use for rural living or other incompatible uses.

- Encouraging consolidation of existing isolated small lots in rural zones.

- Maintaining an adequate buffer distance between rural residential development and intensive animal husbandry.

Ensure land is not zoned for rural living or rural residential development if it will encroach on high quality productive agricultural land or adversely impact on waterways or other natural resources.

Ensure land is only zoned for rural living or rural residential development where it:

- Is located close to existing towns and urban centres, but not in areas that will be required for fully serviced urban development.

- Can be supplied with electricity and water and good quality road access.

Melton Planning Scheme Overview

The Melton Rural Land Use Policy is included in the City of Melton Municipal Strategic Statement (MSS) in the Melton Planning Scheme (Clause 22.08). This policy applies to all land within the City of Melton that is located within the following zones:


Green Wedge ‘A’ Zone (GWAZ)

Rural Conservation Zone (RCZ)

Farming Zone (FZ).

The purpose of this policy is to preserve the integrity of Melton’s rural land for sustainable and efficient rural land uses, and to maintain a buffer between metropolitan Melbourne and the township of Melton.



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The implications of the Rural Land Use Policy for this assessment are:

The green-wedge breaks must be preserved

The rural lifestyle and landscape of these zones must be preserved

Land within the zones that is no longer suitable for agricultural uses is available for residential purposes

There is a need to identify large land parcels that are suitable for intensive agricultural uses and ensure that they are not improperly subdivided.

The Housing Diversity Policy in the MSS applies to the LDRZ zoned land in the study area. This policy aims to protect the character of these residential areas while facilitating the construction of a range of housing options. The Housing Diversity Policy recommends that LDRZ land be retained.

The Urban Growth Zone (UGZ) facilitates much of the residential development in Melton. UGZ land is located predominantly to the east of the Melton township where it joins Melton and Brimbank council growth areas. UGZ land requires the preparation of a Precinct Structure Plan (PSP) in order for development to occur. This ensures that these residential areas are adequately serviced with regard to schools, activity centres, employment areas, etc. Typically, PSPs do provide for urban uses, including residential, and rarely provide for rural residential areas.

Municipal Strategic Statement

Council adopted the revised Municipal Strategic Statement (MSS) in July 2017. Amendment C200 proposes to update the Local Planning Policy Framework (LPPF) by replacing the existing Municipal Strategic Statement (MSS) at Clause 21 of the Melton Planning Scheme with a new MSS to improve its usability, reflect growth patterns that have occurred over recent years and include several strategic planning strategies that have been completed since the last MSS review.

This update will ensure the MSS is consistent with state policy and adopted Council policy, plans and guidelines to create a strong planning framework to guide land use and development across the municipality.

Overview of Green Wedge Zone

While residential uses are not the main purpose of the GWZ, they are a Section 2 permitted use. The purpose of the GWZ as stated in the Melton Planning Scheme (Clause 35.04) is as follows:

To provide for the use of land for agriculture.

To recognise, protect and conserve green wedge land for its agricultural, environmental, historic, landscape, recreational and tourism opportunities, and mineral and stone resources.



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To encourage use and development that is consistent with sustainable land management practices.

To encourage sustainable farming activities and provide opportunity for a variety of productive agricultural uses.

To protect, conserve and enhance the cultural heritage significance and the character of open rural and scenic non-urban landscapes.

To protect and enhance the biodiversity of the area.

The GWZ is located in two major precincts, located to the north and south of the Melton township. Combined, GWZ land in the City of Melton accounts for a total area of 21,838ha of land, representing 41% of the total land area in the City. The location of GWZ land can be seen in Figure 1.2.

A permit is required to subdivide GWZ land. The majority of GWZ land in the City of Melton can be subdivided using the following formula, which is stipulated in the Melton Planning Scheme:

N=A/20

Where ‘N’ (rounded down) is the number of lots that can created and ‘A’ is the area of land in hectares. The subdivision must comprise one large primary lot. The secondary lots must be at

least 1.0 hectares and must be no larger than 5.0 hectares.

The above formula means that only parcels with a land size of 40ha or more can be subdivided and applies to land marked as ‘A’ in the Incorporated Map shown in the Schedule to the GWZ in the Melton Planning Scheme.

An example of the type of subdivision that can occur as a result of this formula is shown in Figure 1.3. The land in question was approximately 130ha in size and was subdivided into one primary lot and five additional smaller lots of approximately 1ha.

Land marked as ‘B’ in the Incorporated Map shown in the Schedule to the GWZ in the Melton Planning Scheme is permitted to be subdivided to 12ha and only applies to a limited extent of GWZ land in the City of Melton.



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Figure 1.3: Example of GWZ Subdivision

Produced by Essential Economics using MapInfo and Nearmap

Overview of Green Wedge A Zone

The purpose of the GWAZ differs slightly from the GWZ in the Local Planning Policy Framework. The GWAZ purpose is more concerned with sustainable land management practices, sustainable farming activity and biodiversity.

The GWAZ land comprises approximately 624ha of land (or 1.2% of all land in the City of Melton) and is located to the west of the Melton township.

GWAZ land parcels require a permit for subdivision. According to the Schedule to the GWAZ, each lot in the subdivision must be at least 2ha in land area unless the land is within 300 metres of Djerriwarrh Creek, a Rural Conservation Zone (RCZ), Public Conservation and Resource Zone (PCRZ) or Public Use Zone (PUZ), in which case the minimum subdivision area is 5ha.

A large portion of GWAZ land lies within these areas that impose limitations on subdivision size.



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Overview of Low Density Residential Zone

The purpose of the LDRZ is to provide for low-density residential development on lots which, in the absence of reticulated sewerage, can treat and retain all wastewater.

Two areas of LRDZ land are included in the study area, a small area in Toolern Vale which is completely developed. The second LDRZ area is located to the immediate east of the Melton township which includes a number of vacant lots generally ranging in size from 4,000m2 to 1ha.

Subdivision of LDRZ land requires a permit. For a permit to be granted each lot must be at least 0.4ha (or 4,000m2) in areas where reticulated sewerage is not connected, or at least 0.2ha (or 2,000m2) in areas that are connected to reticulated sewerage.

Western Plains North Green Wedge Management Plan 2014

In 2014 a plan was released for the management of Green Wedge Zones in the Western Plains North. This plan was authored by Hansen Partnership for the City of Melton and states that the overarching aim of the document is:

To provide a framework to support sustainable land use, land management and development of the City of Melton’s Western Plains North Green Wedge.

The Western Plains North Green Wedge Management Plan (WPNGWMP) seeks to fulfil this overarching aim through the following objectives:

Identify the agricultural, water, infrastructure, landscape, flora and fauna and heritage resources within the Green Wedge

Identify the land capability and environmental conditions of the Green Wedge

Identify the land uses within the Green Wedge and the contribution that they make to the City of Melton, the surrounding region and the wider Metro Melbourne area

Provide strategic guidance on land use and development

Recommend measures to protect and enhance the Green Wedge.

The implications of this policy for the study are:

The Management Plan identifies that the current subdivision formula is not working in the way Council had hoped. The formula has resulted in the creation of a cluster of very small lots in order to maintain a larger agricultural lot, this has created an increased potential for conflict with agricultural uses.

The current subdivision controls have resulted in a dispersed population of resident who are not necessarily familiar with the requirements of rural life.



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A policy conflict has occurred between the GWZ subdivision regulations and the Rural Land Use Policy. The Rural Land Use Policy has limited the approvals of subdivisions in GWZ areas.

The Plan found that although the current minimum subdivision size is 40ha, 30ha was the minimum lot size that could be contemplated without compromising future agricultural use.

Areas of GWZ land that have been kept for conservation are fragmented and small in size which has reduced the effectiveness of the conservation areas.

A particular implication from the WPNGWMP for this project is the identification of the land to the north of the existing Melton Township, referred to as Precinct 5 or the ‘Melton Township Interface Precinct’, as having potential for hobby farms and rural living uses. The WPNGWMP recommends an analysis of rural living opportunities, which is the genesis for this assessment, and subject to the identification of demand, indicates that a Development Plan would be useful in guiding orderly development of the area.

The Melton Township Interface Precinct is shown as Precinct 5 in Figure 1.4 below.

Figure 1.4: Western Plains North Green Wedge Management Plan – Precinct Map

Source: City of Melton. Western Plains North Green Wedge Management Plan, 2014



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1.4 Potential Constraints to Rural Residential Land Subdivision

The current Bushfire Management Overlay (BMO) covers some areas of the study area (refer Figure 1.5). The purpose of this overlay is to identify areas that are at risk of bushfire and to enact measures to protect property and people.

A permit is required to carry out subdivision or buildings/works in areas that are covered by a BMO. Areas covered by the BMO may be unsuitable for subdivision for the purpose of this study.

The Outer Metropolitan Ring Road is a new transport planning project that seeks to create a new road and rail link through Werribee, Melton, Tullamarine, Craigieburn and Thomastown. This project hopes to improve access to employment areas and create better transport and freight links among other objectives.

A Public Acquisition Overlay (PAO3) has been placed over land relevant to the construction of the Outer Metropolitan Ring Road, some of which falls within the GWZ. The purpose of the PAO3 is to identify and reserve land for the purpose of building the Ring Road.

The Melbourne Airport Environs Overlay (MAEO2) applies to an area of GWZ land in the study region. The purpose of the MAEO overlay is to ensure that the land uses within the overlay area are compatible with the operation of the airport in accordance with the airport masterplan. The schedule to the overlay (2) aims to shield residents from noise and environmental pollution generated by the operations of the airport.

A permit is required to subdivide land or carry out buildings or works under the MAEO. Subdivision regulations state that the development of a lot for two or more dwellings must not exceed a density of one dwelling per 300 square metres. Land within the GWZ is unable to exceed this density.

The Rural Conservation Zone (RCZ) and Public Conservation and Resource Zone (PCRZ) effects land in the neighbouring GWAZ land due to a 300m buffer which limits the subdivision size of lots to a minimum of 5ha.

Djerriwarrh Creek is surrounded by RCZ and PCRZ land. These areas are of great environmental significance to both the City of Melton and Moorabool Shire. A 300 metre buffer exists from both the river and the adjoining zones that limit the minimum subdivision size of land within the GWAZ to 5ha.



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Figure 1.5: Overlay and Constraints Map

Source: Essential Economics using MapInfo and BingMaps



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1.5 Economic Context

An overview of the key economic indicators relevant to this project is provided below:

Strong population growth: The City of Melton has a population of approximately 138,640 persons in 2016, according to the latest ABS estimates of resident population. Over the previous 10 years, the City’s population increased by +58,050 people at an average rate of 5.6% per annum. This compares to an average growth rate of 2.1% per annum for metropolitan Melbourne.

Population growth is being driven by affordable housing options in the City’s residential growth areas. Strong population growth is expected to occur in the future with significant areas of land planned for urban development between Caroline Springs and Melton. By 2041, id Consulting forecast the City of Melton’s population will more than double to 374,000 people.

Strong forecast dwelling growth: Between 2016 and 2041, id Consulting forecast total dwelling growth of approximately 85,200 dwellings, or approximately 3,400 dwellings a year. Once again, the majority of dwelling growth is forecast to occur in the urban growth areas between Melton and Caroline Springs.

Strong local job growth: Strong growth in local employment occurred between 2011 and 2016. According to ABS Census data for these years, the number of local jobs increased from approximately 16,300 jobs in 2011 to 24,700 jobs in 2016, representing growth of 8.7% per annum.

High unemployment: Despite strong job growth, the City of Melton has a high unemployment rate. In the March Quarter 2017 the unemployment rate in the City of Melton was 8.5% compared to 5.9% for metropolitan Melbourne.

Agriculture is not a major employing industry: Agriculture is not a major employing industry. In 2016, agriculture accounted for only 250 jobs, or 1.1% of jobs in the City of Melton.

A large proportion of workers travel beyond the City of Melton for work: According to ABS 2016 Census data, 73% of City of Melton residents travel beyond the City for employment purposes.



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2 R U R A L L I F ES T Y L E L A N D S U P P LY A S S E S S M E N T

This Chapter provides an overview of the existing supply of ‘rural lifestyle’ land in the City of Melton.

2.1 Total ‘Rural Lifestyle’ Zoned Land

Combined, land defined as ‘rural lifestyle’ for the purpose of this study accounts for 43.1% of land in the City of Melton, making it one of the most prominent land uses in the City.

The GWZ is the most significant land use zone accounting for approximately 21,840ha of land (or 41.4% of land in the City of Melton). The GWAZ and LDRZ account for approximately 624ha (1.2%) and 260ha (0.5%) respectively.

Table 2.1 summarises the total land zoned as ‘rural lifestyle’ by zone.

Table 2.1: Total Rural Lifestyle Zoned Land, 2017

Zone Area % of City of Melton

Green Wedge Zone 21,838.3ha 41.4%

Green Wedge A Zone 623.7ha 1.2%

Low Density Residential Zone 259.7ha 0.5%

Total 'rural lifestyle' zoned land 22,721.6ha 43.1%

Source: DELWP

2.2 Total Rural Lifestyle Vacant Lot Supply

GIS analysis of aerial photography taken in October 2016 (provided by the City of Melton), and property cadastre and land use planning zone information was undertaken to ascertain the existing supply of vacant rural lifestyle lots.

In total, 247 vacant rural lifestyle lots existed in the City of Melton; the majority (212 lots) were in the GWZ. Only 29 vacant lots were in the LDRZ and 6 lots in the GWAZ.

It addition to identifying vacant lots, lots that were of sufficient size that could be subdivided based on the minimum subdivision size and requirements for each zoned were also identified. The assumptions for each zone were as follows:

LDRZ: Minimum lot size of 2,000m2, therefore, lots of 4,000m2 or more were considered to have subdivision potential. This assumes land can be connected to reticulated sewer (refer Section 1.3).

GWZ: Having regard for the subdivision formula described in Section 1.3, lots of 40ha or more within the area marked ‘A’ in the Incorporated Map shown in Schedule to the GWZ in the Melton Planning Scheme are considered to have subdivision potential.



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Consideration was also given to land marked ‘B’ and that have a minimum subdivision size of 12ha.

GWAZ: Only three lots were considered to be of sufficient size to be subdivided having regard for the requirements outlined in Section 1.3.

In addition to the above, consideration has also been given to information provided by Council regarding 173 Agreements and restrictions on subdivision.

Having regard for the above, 115 lots were considered to subdivision potential and 132 are considered to be vacant lots without subdivision potential.

Table 2.2 summarises this analysis by land use zone, while Figures 2.1, 2.2 and 2.3 show the location of vacant lots throughout the City of Melton.

Table 2.2: Vacant Rural Lifestyle Lot Supply, 2016

Category GWZ GWAZ LDRZ Total

Single vacant lots 126 3 3 132

Vacant lots with subdivision potential 86 3 26 115

Total vacant lots 212 6 29 247

Source: Essential Economics



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Figure 2.1: Vacant Rural Lifestyle Lot Supply, 2016

Produced by Essential Economics using MapInfo, StreetPro, Aerial imagery provided by City of Melton, and land use zone and property cadastre information sourced from DELWP.



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Figure 2.2: Vacant LDRZ Lot Supply, 2016 – Land to the east of Melton Township




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Figure 2.3: Vacant LDRZ Lot Supply, 2016 – Toolern Vale




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2.3 Rural Lifestyle Lot Supply by Size

Figure 2.4 summarises the distribution of vacant lots by size with the relevant characteristics being:

The majority of vacant lots less than 1ha in size are in the LDRZ (24 lots)

The GWZ provides a supply of land ranging from less than 1ha to more than 100ha in size.

A total of 129 vacant lots range from 1ha to 39.9ha; these rural lifestyle lots can broadly be said to have limited opportunity for major agricultural production.

Of the 85 GWZ and GWAZ lots with greater than 40ha, 12 lots are more than 100ha in size.

Figure 2.4: Vacant Rural Lifestyle Lots by Size, 2016


2.4 Potential Rural Lifestyle Lot Supply on Vacant Lots

An estimate of the total ‘potential’ lifestyle lot supply in the City of Melton has been prepared based on the application of the minimum subdivision sizes and requirements for each zone, as described in Section 1.3. A summary of this analysis is shown in Table 2.3, while Figure 2.1 shows the location of potential rural lifestyle lots that could be subdivided in the future.

In total, potential exists for a total of 602 rural lifestyle lots comprising:

78 lots in the LDRZ, ranging from approximately 2,000m2 to 4,000m2

58 lots in the GWAZ, ranging from approximately 1,000m2 to 5ha

466 lots in the GWZ, ranging from approximately 1,430m2 up to 1,200ha (based on the subdivision formula for GWZ described in Section 1.3)

8

22 16

43 40

71

12 1 2 0 0 1 2

24

5

0

20

40

60

80

< 1ha 1ha- 4.9ha 5ha - 9.9ha 10ha -19.9ha

20ha -39.9ha

40ha -99.9ha

100ha +

GWZ GWAZ LDRZ



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A supply of 470 lots would rely on land being subdivided. It should be acknowledged that the likelihood, and timing, of this occurring is unknown. The decision to subdivide land is dependent on the circumstances and desires of individual land owners.

Table 2.3: Potential Rural Lifestyle Lot Supply on Vacant Lots, 2016


Single vacant Lots 126 3 3 132

Potential lot supply on large vacant lots with subdivision potential

340 55 75 470

Total vacant lot potential 466 58 78 602


2.5 Potential Rural Lifestyle Lot Supply on Occupied Lots

In addition to vacant lots, potential exists for larger occupied lots to be subdivided in the future. Once again, the likelihood of this occurring is unknown although as a general rule, it is considered larger occupied lots are less likely to be subdivided than vacant lots.

The subdivision of large occupied lots can be constrained by a variety of factors, the importance of which vary between individual land owners and which may include:

The land owner has no intention to subdivide as they prefer a larger lot

The siting of dwellings and buildings makes it difficult to subdivide the land

The subdivision of land may not be considered to be in keeping with the existing character of the surrounding area

Sub-division may not be financially feasible having regard to costs associated with required infrastructure (e.g. roads) and connection to services.

Having regard for analysis of lot sizes, minimum subdivision sizes for each land use zone, ‘potential’ exists for an additional 849 lots to be created through the subdivision of larger occupied lots. A summary of this is provided below:

Potential for an additional 229 lots in the GWZ

Potential for an additional 84 lots in the GWAZ

Potential for an additional 536 lots in the LDRZ. In essence, assuming LDRZ land to the east of the Melton township is connected to reticulated sewer, the majority of lots could be subdivided further; however, this is considered to be unlikely. Many of the occupied lots are encumbered with large houses sited centrally to their respective lots, making it difficult and unlikely that further subdivision of these lots would occur in the future.

Due to the unknown nature of the potential subdivision of larger occupied lots, these have not been factored into the demand and supply assessment presented later in this report.



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2.6 Small Lot Potential on GWZ Land

Analysis of the potential for 1ha to 5ha lots on occupied and vacant GWZ land was undertaken to ascertain the potential implication on lot supply.

Based on the formula for subdivision of GWZ land, potential exists for a total of approximately 480 one hectare to five hectare lots in the GWZ comprising:

Approximately 250 lots on vacant land

Approximately 230 lots on occupied land.

The above figures are intended to provide a guide only on the potential for small lot subdivision to occur in the GWZ. As described earlier, various constraints exist that mean in reality, this level of subdivision is unlikely to occur. Nevertheless, it does provide a theoretical indication of the potential for small lots in the GWZ.

A spatial representation of lots which could be subdivided is shown in Figure 2.5, which illustrates the extent of land available for subdivision in the GWZ.



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Figure 2.5: Lot Potential on GWZ Land, 2016

Produced by Essential Economics using MapInfo and Bingmaps



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2.7 Summary

Total potential rural lifestyle lot supply of approximately 600 lots exists in the City of Melton. The majority (approximately 470 lots or 77%) of this lot supply is in the GWZ, including the potential for approximately 340 vacant GWZ lots on land which has subdivision potential.

Taking into consideration individual GWZ lots that have the potential to be subdivided and the existing guidelines regarding subdivision (refer Section 1.3) which allows lots as small as 1ha in certain areas, potential exists for this land to accommodate approximately 250 smaller lots of 1ha-5ha.

In total, only 29 vacant LDRZ lots exist. These have the potential to supply 78 vacant lots assuming lots greater than 4,000m2 can be subdivided to 2,000m2 which requires connection to services.

A summary of the potential lot supply, including the potential for lots on occupied land to be subdivided is shown in Table 2.4.

Table 2.4: Potential Rural Lifestyle Lot Supply, 2016


Single vacant lots with no subdivision potential 126 3 3 132

Lot potential on vacant lots with subdivision potential 340 55 75 470

Total vacant lot potential 466 58 78 602

Occupied lots with subdivision potential 229 84 536 849




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3 M A R K E T A N D D E M A N D A S S ES S M E N T

This Chapter provides an analysis of the demand for rural lifestyle land in the City of Melton, based on a review of market conditions and recent development rates. Analysis of the demand and supply situation for LDRZ and GWZ/GWAZ land is also provided.

3.1 Residential Characteristics of Rural Lifestyle Areas

At a broad level, the characteristics of residents and households in rural lifestyle areas in the City of Melton can be identified based on analysis of ABS 2016 Census data (and 2011 relating to employment; 2016 data on employment characteristics was not available at the time of analysis). Although ABS Census data at the small area level (Statistical Area 1) does not directly correlate with LDRZ, GWZ and GWAZ land, it does provide a general indication of the characteristics of residents and households within these areas.

In general terms, the socio-economic characteristics of residents in LDRZ area differs from residents in the GWZ (and GWAZ) areas. For example:

Only 14.4% of residents in LDRZ areas are aged between 20 and 34 years, this compares to 25.5% for residents in GWZ areas

25.0% of residents aged 15 years or over in LDRZ are earning $1,250 or more a week, compared to 20.5% in GWZ areas

Only 2.1% of dwellings in LDRZ areas are rented, compared to 22.9% in GWZ area

Couples with children represent 57.4% of households in LDRZ areas, compared to 40.6% of households in the GWZ areas

Lone person households account for 7.7% of households in LDRZ areas, compared to 16.5% in GWZ areas.

The above indicates different market characteristics exits between the smaller rural lifestyle lots (say, around 4,000m2) typically provided in the LDRZ area compared to the market lots in the GWZ area which varying significantly in size but are generally at least 1ha.

In general terms, the occupational structure in 2011 of LDRZ and GWZ areas are similar, with both areas (LDRZ: 18.2% of employed persons; GRZ areas: 21.0%) having a higher share of persons employed as ‘technicians and trades workers’ compared to metropolitan Melbourne (13.7%) and City of Melton (16.5%) averages.

Table 3.1 provides a summary of the socio-economic characteristics of areas that broadly reflect LDRZ and GWZ/GWAZ land in the City of Melton and immediate adjoining areas.



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Table 3.1: Socio-economic Characteristics of Residents in Rural Lifestyle Area, 2011 and 2016

Category Indicative LDRZ Area

Indicative GWZ Area

Total Indicative

'Rural Lifestyle' Area

City of Melton

Greater Melbourne

Age Structure

0-9 years 14.6% 18.7% 17.4% 17.2% 12.6%

10-19 years 15.4% 11.7% 12.9% 14.0% 11.7%

20-34 years 14.4% 25.5% 21.9% 21.8% 23.7%

35-54 years 31.7% 24.2% 26.6% 29.3% 27.3%

55-69 years 18.2% 14.5% 15.7% 12.7% 15.0%

70+ years 5.6% 5.4% 5.4% 4.9% 9.6%

Share of persons with a weekly income of $1,250 or more

25.0% 20.5% 22.0% 20.8% 24.9%

Share of population Australian born

82.8% 76.2% 78.4% 67.9% 63.8%

Tenure Type

Owned outright 36.0% 25.0% 27.8% 23.2% 31.2%

Owned with a mortgage 61.3% 50.8% 54.1% 53.8% 36.8%

Rented 2.1% 22.9% 16.8% 21.6% 30.2%

Other 0.6% 1.3% 1.3% 1.4% 1.8%

Household Type

Couple family with no children

27.1% 25.8% 26.2% 20.8% 24.2%

Couple family with children

57.4% 40.6% 45.7% 45.8% 35.4%

One parent family 5.5% 13.5% 11.1% 13.9% 10.6%

Other family 0.6% 0.7% 0.7% 1.1% 1.5%

Lone person household 7.7% 16.5% 13.8% 16.1% 23.2%

Group household 1.6% 3.0% 2.5% 2.3% 5.0%

Occupation (2011)

Managers & professionals

24.2% 24.6% 24.4% 24.6% 37.4%

Clerical & sales workers 36.6% 36.8% 36.7% 37.4% 34.7%

Technicians & trades workers

18.2% 21.0% 19.7% 16.5% 13.7%

Machinery operators & drivers

12.9% 8.9% 10.8% 11.0% 6.0%

Labourers & related workers

8.1% 8.8% 8.5% 10.5% 8.1%

Source: ABS, Census of Population and Housing, 2011 & 2016



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3.2 Rural Lifestyle Property Market Overview

Market Commentary

Discussion with real estate agents who are active in the City of Melton was undertaken as part of this project. The agencies consulted were Barry Plant Real Estate, Raine & Horne, and Professionals Ryder Real Estate.

Key points highlighted throughout these discussions are summarised below, and provide an overview of the rural lifestyle market in the City of Melton:

Market Demographics: According to real estate agents, the key demographics of people currently occupying rural living lots were:

- Young families who were upgrading to larger houses. These families typically consist of a mother and father who needed to be in commuting distance to work.

- Retirees moving from larger agricultural lots which have been converted to urban growth zoned land. These comparatively smaller lots are more manageable but still allow for the space that these people have been accustomed to.

Availability of LDRZ Lots: All agents agreed that there was a shortage of LDRZ lots in the City of Melton. In the rare case that a lot becomes available for sale, it is typically sold quickly and at a high return.

Land Banking: While there are still some vacant LDRZ lots (refer Chapter 2), owners/investors have held onto these lots, as they see the potential for higher return on investment in the future. Lots without houses have been counted as vacant in this study; however, that does not necessarily mean they are currently available for development.

Agricultural Uses: Most of the LDRZ and GWZ lots are not used for agricultural purposes as their owners are not typically from agricultural backgrounds, and do not know how to work the land. Other influential factors include limited availability of water for crops, and the soil in the area is not of a high quality, according to the agents consulted.

Areas for Conversion for Rural Lifestyle Living: All of the agents consulted highlighted West Melton for potential conversion to LDRZ land, stating areas such as Harkness Road, Minns Road and Porteous Road would be ideal locations for rural living.

Property Sales Trends

General market conditions regarding the sale of rural lifestyle lots in the City of Melton have historically followed similar sales patterns to general residential lots, albeit to a lesser extent.

Since the 2010, total residential sales in the City of Melton have averaged 3,971 per annum, 54 of which have been rural lifestyle lots. Recent trends in the number of property sales is shown in Table 3.2.



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Table 3.2: Residential Sales in the City of Melton, 2010-2016

Category 2010 2011 2012 2013 2014 2015 2016 Annual Average

Total Residential Sales 5,011 3,401 3,020 3,618 3,937 4,674 4,135 3,971

Residential/Rural Lifestyle Lot Sales 55 31 24 35 31 41 50 38

Vacant Residential Rural Lifestyle Lot Sales

8 19 10 13 11 5 16 12

Vacant 2,000m2 - 4,000m

2

Residential Lot Sales 6 1 5 9 2 2 3 4

Total 'Rural Lifestyle’ Lot Sales 69 51 39 57 44 48 69 54

Source: Valuer General, A Guide to Property Values, annual

Comparing the number of rural lifestyle property sales in the City of Melton with neighbouring municipalities of Moorabool, Hume and Macedon Ranges shows other localities have much higher rates of rural lifestyle lot sales. This can be attributed to the availability of rural lifestyle land and houses, particularly in Moorabool and Macedon Ranges. Moorabool and Macedon Ranges are both located further away from the Melbourne CBD and are well-established as desirable ‘lifestyle’ residential areas.

While Macedon Ranges and Moorabool both have more rural lifestyle property sales, the median prices are significantly lower than those in the City of Melton.

Table 3.3 provides a comparison of rural lifestyle property sales median price trends.

Table 3.3: Comparison of Rural Lifestyle Lot Trends in Neighbouring Municipalities, 2016

Category Melton (C) Moorabool (S) Hume (C) Macedon Ranges (S)

Number of Sales

Rural/Lifestyle 50 149 78 315

Vacant Rural/Lifestyle 16 62 15 43

Total Residential 4,135 738 5,285 828

Median Price

Rural/Lifestyle $760,000 $515,000 $925,000 $710,000

Vacant Rural/Lifestyle $442,500 $262,500 $715,000 $278,300

Median House Price $400,000 $355,000 $427,000 $517,465


Median Prices Trends

Table 3.4 summarises the recent median house price in the City of Melton and the median ‘residential/rural lifestyle’ house price as defined by the Valuer General.

It is evident from the Table that a premium is associated with rural lifestyle properties. For instance, in 2016 the median house price in the City of Melton was $400,000, while the



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median price for a ‘residential/rural lifestyle’ property was $760,000, or 90% above the median house price.

For reference purposes, the median size of lots for house sales in 2016 was between 500-600m2, and the median size of vacant house lots was 450m2. This compares to a median lot size of approximately 6,340m2 (or 0.6ha) for a ‘residential/rural lifestyle’ house.

Table 3.4: Historic Median House Price in the City of Melton, 2010-2016

Category 2010 2011 2012 2013 2014 2015 2016

Median House $335,000 $355,000 $353,000 $360,000 $380,000 $385,000 $400,000

Residential / Rural Lifestyle $670,000 $765,000 $685,000 $635,000 $630,500 $755,000 $760,000

Variation 100% 115% 94% 76% 66% 96% 90%


3.3 Recent Development Trends on Rural Lifestyle Land

Development Trends in the City of Melton

The recent development rate of rural lifestyle land in the City of Melton for each zone was estimated on the basis of a lot-by-lot analysis of property cadastre, zoning information and aerial photography from February 2007 and October 2016. Development was considered to have occurred where the construction of a ‘habitable’ dwelling appeared (based on aerial photography) during this timeframe.

Based on this analysis, an average of approximately 10.3 lots per annum were developed on rural lifestyle land between February 2007 and October 2016. These lots had a median lot size of approximately 1ha. A summary by zone is provided below:

LDRZ land: An average of 3.9 lots per annum, characterised by the following:

- 3.5 lots per annum between 3,980m2 and 4,820m2

- 0.4 lots per annum on lots larger than approximately 6,500m2

- All lots developed were in the LDRZ estate to the immediate east of the Melton township

- Median lot size of approximately 4,070m2.

GWZ land: An average of 6.4 lots per annum, characterised by the following:

- Mainly smaller lots in the order of 1ha to 3.2ha, which accounted an average of 3.7 lots per annum on GWZ land

- 0.9 lots per annum on lots larger than 40ha

- Median lot size of 2.4ha.

GWAZ land: No development occurred between February 2007 and October 2016.



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Table 3.5 summarises the extent of development on rural lifestyle land in the City of Melton. The location of development is shown in Figures 3.2 (the entire City of Melton), Figure 3.3 (the LDRZ land in the City of Melton) and Figure 3.4 (GWZ land in Strathtulloh).

Table 3.5: Recent Rural Lifestyle Development Trends, February 2007 to October 2016

Area Total, 2007-2016 (lots) Annual Average (lots)

LDRZ GWZ Total LDRZ GWZ Total

3,980-4,820m2 34 - 34 3.5 - 3.5

6,490-7,170m2 2 - 2 0.2 - 0.2

Approximately 1ha 2 16 18 0.2 1.7 1.9

1.5ha - 3.2 ha - 20 20 - 2.1 2.1

3.3ha to 7 ha - 8 8 - 0.8 0.8

10ha to 20ha - 5 5 - 0.5 0.5

20.1ha to 40ha - 4 4 - 0.4 0.4

40.1ha plus - 9 9 - 0.9 0.9

Total 38 62 100 3.9 6.4 10.3

Median Lot Size (m2) 4,070m2 24,340m

2 10,460m

2 - - -

Median Lot Size (ha) 0.4ha 2.4ha 1.0ha - - -




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Figure 3.2: Rural Lifestyle Development, February 2007 and October 2016 (City of Melton)

Produced by Essential Economics using MapInfo, StreetPro and NearMap



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Figure 3.3: LDRZ Residential Development between February 2007 and October 2016




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Figure 3.4: GWZ Residential Development between February 2007 and October 2016 in Strathtulloh


LDRZ Development Trends in Hopetoun Park

In the City of Melton, an average of 3.9 lots per annum were developed between 2007 and 2016 on land zoned LDRZ. It is understood, through discussions with real estate agents, that vacant land in the LDRZ to the east of the Melton township is tightly held. Despite 29 vacant lots existing in this area, a review of www.realestate.com shows that no vacant lots were for sale at the time of reporting (August 2017). This supports the view of LDRZ lots in Melton are tightly held and therefore provides a more limited opportunity for new development to occur.

Hopetoun Park is a LDRZ estate in Moorabool Shire which is located to the immediate west of the City of Melton boundary. The estate provides a variety of lots sizes, generally ranging from approximately 4,000m2 to approximately 1.2ha.

http://www.realestate.com/



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The development of Hopetoun Park has benefitted from the tightly held market in Melton and has experienced a development rate of 14.9 lots per annum between February 2007 and October 2016, including 11.5 lots a year on land between 4,000m2 and 8,000m2 (or approximately 1-2 acres). This would indicate, potential for a higher rate of development on LDRZ, or potential GWZ lots in the order of 1ha, should a greater amount of supply be available to the market. To some extent, Hopetoun Park is meeting demand for LDRZ lots that could otherwise occur in the City of Melton.

To this extent, it is acknowledged that while there are 29 vacant LDRZ lots, they are not currently available to the market (i.e. for sale). Similarly, potential exists for a greater supply of small (i.e. 1ha to 5ha) GWZ lots; however, these would require subdivisions to occur.

Figure 3.5 shows the recent rate of development on LDRZ land in Hopetoun Park.



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Figure 3.5: LDRZ Residential Development between February 2007 and October 2016 (Hopetoun Park)




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3.4 Demand and Supply Assessment: LDRZ Lots

Assuming the future development of LDRZ lots occurs at a similar rate to that which has occurred in recent years (i.e. 3.9 lots per annum), the 29 vacant LDRZ lots represents a 7.4 year supply.

Should land that could be subdivided (i.e. lots vacant lots larger than 4,000m2) and assuming they could be subdivided to a minimum lot size of 2,000m2, the existing ‘potential’ supply of LDRZ lots equates to a 19.9 year supply.

It should be noted that this does rely on lots in the LDRZ estate to the east of the Melton township being subdivided to 2,000m2. Generally, lots in this estate are in the order of 4,000m2 and this would result in a significant increase in the density of housing in this area.

As discussed earlier (refer Section 3.3), potential exists for a greater level of demand should appropriately located (and serviced) LDRZ land be available for development; noting that only 29 vacant LDRZ lots currently exist and none of these are currently for sale (based on a review of www.realestate.com). Assuming demand for 10-15 lots per annum (noting that Hopetoun Park is currently developing at a rate of 15 lots per annum), the existing supply of 29 lots equates to approximately a 2-3 year supply, while the ‘potential’ supply of 78 lots equates to approximately a 5-8 year supply.

Consequently, potential exists for an additional supply of LDRZ lots to meet market demand.

Table 3.6 summarises the existing demand and supply situation for LDRZ lots in the City of Melton.

Table 3.6: Demand and Supply for LDRZ Lots, City of Melton

Category Lot Supply Supply in Years (recent trends)

Supply in Years (potential)

Annual demand Na 3.9 lots/yr 10-15.0 lots/yr

Total vacant lots 29 lots 7.4 years 1.9-2.9 years

Total lot potential on vacant lots (assuming subdivision to 2,000m

2 lots)

78 lots 19.9 years 5.2-7.8 years


It should be noted that the development of LDRZ over the past decade or so has been largely on lots in the order of 4,000m2 (or approximately 1acre). Recent changes to the LDRZ allows for lots as small as 2,000m2 (or approximately ½ an acre) providing they are connected to services; however, the availability of smaller LDRZ lots for development is limited. Therefore, the market for LDRZ lots in the order of 2,000m2 in Melton is largely untested at present.

http://www.realestate.com/



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3.5 Demand and Supply Assessment: GWZ and GWAZ Lots

Assuming the future development of GWZ and GWAZ lots occurs at a similar rate to that which has occurred in recent years (i.e. 6.4 lots per annum), the 212 vacant GWZ and GWAZ lots represents a 33-year supply.

If larger vacant GWZ/GWAZ lots could be subdivided, the ‘potential’ supply of 466 vacant lots equates to a 73-year supply.

Therefore, a significant supply of land in the GWZ/GWAZ exists to cater for future demand for rural lifestyle lots.

Table 3.7 summarises the existing demand and supply situation for GWZ/GWAZ lots in the City of Melton.

Table 3.7: Demand and Supply for GWZ/GWAZ Lots, City of Melton

Category Lot Supply Supply in Years (recent trends)

Annual demand na 6.4 lots/yr

Total vacant lots 212 lots 33.1 years

Total lot potential on vacant lots 466 lots 72.7 years


3.6 Conclusions

The main conclusions of the market and demand analysis presented in this Chapter are as follows:

LDRZ Land: Potential exists for additional LDRZ land (or land which provides for a LDRZ-type of outcome) in the City of Melton.

A demonstrable demand exists for LDRZ lots in the order of 4,000m2, as evidenced by an average of approximately 4 LDRZ lots a year being developed in the City of Melton between February 2007 and October 2016, and an average of 15 lots a year in the nearby Hopetoun Park LDRZ estate over the same period.

The extent of LDRZ land required and appropriate locations should be investigated in Stage 2 of this project (refer Part B).

GWZ/GWAZ Land: Vacant GWZ has the potential to supply approximately 470 lots, including the potential for approximately 250 small lots of 1-5ha lots as a result of subdivision of larger lots. In addition, potential also exists for approximately an additional 230 lots on currently occupied lots that have subdivision potential.

This level of supply is sufficient to meet the future demand for rural lifestyle lots larger (1ha or more) than those that would typically be accommodated in the LDRZ.



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4 I M P L I C AT I O N S F O R P L A N N I N G F O R R U R A L L I F E S T Y L E L A N D

The main implications with regard to planning for rural lifestyle land supply in the City of Melton arising from the analysis presented in Part A of this report are as follows:

1 Demand exists for additional LDRZ in the City of Melton.

Much of the existing supply of LDRZ is being land banked and is not currently available to the market. Demand for 4,000m2 lots is currently being met in the nearby LDRZ estate in Hopetoun Park, which is the Shire of Moorabool.

Stage 2 (refer Part B) of this project should review the following in regard to LDRZ:

- The benefits of providing additional LDRZ land in the City of Melton

- The extent of LDRZ required

- Potential location for LDRZ, including an assessment of constraints and planning implications

- Review of other planning mechanism that may provide land to meet demand for land in the order of 2,000m2 to 4,000m2.

2 Sufficient opportunity for rural lifestyle living exists in the GWZ and GWAZ

Vacant GWZ land has the potential to supply approximately 470 lots, including the potential for approximately 250 small lots of 1-5ha lots as a result of subdivision of larger lots. In addition, potential also exists for approximately an additional 250 lots on currently occupied lots that are larger than 40ha.

This level of supply is sufficient to meet the future demand for rural lifestyle lots larger than those that would typically be accommodated in the LDRZ. State and local planning policy supports the retention of GWZ land and seeks to avoid inappropriate rural lifestyle development.

There appears to be no need for additional rural lifestyle lots of the type currently provided in the GWZ and GWAZ, therefore, Stage 2 (refer Part B) of this project focuses on the opportunities for LDRZ land.



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PA R T B : S T R AT EG I C L A N D U S E A S S ES S M E N T

Stage Two (strategic land use assessment) examines the appropriate location for LDRZ land (or land that provides a similar outcome) having regard to the constraints, planning requirements, location of the urban growth boundary, environmental constraints, market preferences, etc. This analysis is presented in Part B of this report.

The following information is provided in Part B:

Chapter 5: Framework for Identifying Land for LDRZ-type Residential Development: Provides an overview of the key considerations (including type and extent of land required), and factors that need to be considered when assessing potential locations for additional land to accommodate LDRZ-type development.

Chapter 6: Options Assessment: Provides an assessment of the potential locations for LDRZ-type development. Also, includes a summary of the key recommendations regarding potential locations for LDRZ land.



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5 F R A M E W O R K F O R I D E N T I F Y I N G L A N D F O R L D R Z - T Y P E R ES I D E N T I A L D E V E LO P M E N T

This Chapter outlines the framework for the identification of LDRZ-type lots, or lots in the order of 2,000m2 to 4,000m2. The framework examines a number of key considerations (i.e. the type and extent of land required, its role in planning and property development) and the key principles for assessing potential locations based on a set of key principles.

5.1 Key Considerations

Type of Land in Demand

As indicated in Part A, demand for lots in the order of 4,000m2 (or approximately 1 acre) currently exists and this demand is likely to continue in the future. Lots of this size are typically accommodated in the LDRZ.

As indicated in Section 1.3 (Part A), the purpose of the LDRZ is to provide for low-density residential development on lots which, in the absence of reticulated sewerage, can treat and retain all wastewater. The subdivision of LDRZ land requires a permit. For a permit to be granted each lot must be at least 0.4ha (or 4,000m2) in areas where reticulated sewerage is not connected, or at least 0.2ha (or 2,000m2) in areas that are connected to reticulated sewerage.

Extent of Land Required

In total, 50-80ha of LDRZ land is required in the City of Melton to meet potential demand over the next 15 years. This estimate takes into consideration the following:

Forecast demand of 10-15 lots a year (refer Chapter 3)

Existing supply of 29 vacant LDRZ lots.

All of these lots are located in the LDRZ precinct to the east of the Melton Township where the existing character reflects lots in the order of 4,000m2 and the majority of vacant lots are in the order of 4,000m2 to 6,000m2. The likelihood of subdivision is therefore unknown. The number of vacant lots has been used as the measure of supply in this instance rather than the total potential lots on vacant LDRZ land (i.e. 78 lots) which relies on the subdivision of land to 2,000m2.

Assumed lot size of 4,000m2 which means land does not have to be connected to reticulated sewerage. If land can be connected and market demand for 2,000m2 eventuates, the 50-80ha of LDRZ land would represent a longer than 15-year supply. Ideally, a mix of lot sizes should be provided in order to contribute to housing diversity and meet differing market demands. Assuming an average lot size of 4,000m2 provides flexibility for this to occur.



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Table 5.1 summarises the analysis based on the above assumptions.

Table 5.1: Forecast Demand for LDRZ Land, 2017-2032

Category Value

Forecast annual demand for LDRZ lots 10-15 lots

Forecast demand for LDRZ lots, 2017-2032 150-225

Existing supply of vacant LDRZ lots 29

Additional lots required 121-196

Assumed average lot size 4,000m2

LDRZ land requirement 48.4ha to 78.4ha

(rounded: 50ha to 80ha)


Role and Purpose of LDRZ Land

The role of LDRZ land is to provide lower density residential lots that allow for housing diversity. The importance of the LDRZ land in providing a diverse range of housing is emphasised in the City of Melton Housing Diversity Strategy, which provides the following comment in relation to existing LDRZ land in the City of Melton:

“It is recommended that existing Low Density Residential Zoned land throughout the City of Melton be retained for the purpose of providing a diverse range of housing choice. These areas, which include areas on the fringes of the Melton Township and in Toolern Vale, provide an opportunity for those seeking large, lifestyle lots” (p. 41).

These types of lots typically act as a buffer between ‘urban’ residential area and agricultural/rural uses. This buffer between agricultural uses and urban settlement is encouraged particularly in growth corridors where contemporary residential development is occurring at increased density.

LDRZ lots are not agricultural in nature as they are not large enough to accommodate hobby farms and keeping more than two animals requires a permit. As LDRZ areas often have interfaces with conventional residential areas, it is important that consideration is given to existing policy and planning outcomes.

As indicated in Section 3.1, LDRZ areas typically accommodate either young families with above average incomes or older people who have ‘down-sized’ from larger rural properties. Property prices are generally above prices for conventional housing. In this sense, LDRZ land typically provides housing for those with above average incomes/wealth, who seek a rural outlook.

Significant urban development is planned in the City of Melton in the coming years, including the development of major town centres, in particular the Toolern Town Centre which is identified as the Metropolitan Activity Centre serving the western region of Melbourne. In this context, the provision of LDRZ land that may be attractive to high income earners is critical in



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terms of attracting a range of workers, including executives, doctors, business owners, key persons of industry, etc.

5.2 Key Principles for Assessing LDRZ Land

A set of key principles are identified below which form the basis for assessing various potential locations for LDRZ land in the City of Melton:

Integration with existing urban areas: LDRZ land should be planned to show how it relates to, or is supported by, existing urban development. It must not impede the proper long-term growth of an urban area based on fully serviced residential development at normal urban densities.

As identified earlier, LDRZ land can perform the role of a buffer between conventional housing and rural areas. However, LDRZ land should not be contemplated in locations that may be required for urban development in the future. The rezoning of such land creates land that is highly fragmented in terms of land ownership, which makes conversion to urban densities very difficult in the future.

Access to facilities and services: Consideration should be given to existing and future provision of retail, recreation, commercial, health and education services for residents living in LDRZ areas. The required 120-200 LDRZ lots (or 50-80ha of LDRZ land) have the potential to accommodate in the order of 400-650 persons who will require access to key facilities and services. It is acknowledged access to facilities and services in LDRZ area will not be at the level expected in urban areas.

Market demand and amenity: LDRZ lots in the City of Melton need to be provided in locations which are deemed desirable from a market perspective. Close proximity to facilities, services and employment (e.g. shops, schools, community facilities, recreation facilities, etc) and areas which display high level of amenity (which may include views of or locations close to bodies of water or higher ground, this may include creeks, hills, etc) are considered desirable areas for LDRZ land.

Constraints to residential development: Constraints to the development of LDRZ lots come in a number of forms including overlays relating to wildfire management, flooding, environmental significance, heritage, etc. Constraints may also include other factors, such as the need to consider the impact of residential development on associated domestic waste water treatment in surrounding waterways, and the environmental/cultural significance of the land.

Consideration must be given to the protection of environmental areas and biodiversity in the creation of LDRZ land. If rezoning poses a significant threat to biodiversity or the environment, then measures should be taken to minimise or mitigate potential harm.

Policy constraints: For the purpose of this project, ‘policy constraints’ relate specifically to the opportunities to influence controls in the GWZ and GWAZ, alter the Urban Growth Boundary or advocate for lower density residential areas in land identified for urban development.



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Impact on agriculture: Including any impacts low density residential development may have on nearby agriculture, and implications of rezoning land away from the GWZ or GWAZ may have on the provision of productive agricultural land.

Provision of required infrastructure and Council services: The provision of Council services and infrastructure such as sewerage, roads, utilities, rubbish disposal, town water assets, irrigation, etc. are expensive to install and maintain; however, such services and infrastructure are a requirement for functional residential areas. Ideally LDRZ land would have existing infrastructure and servicing; however, installation or upgrades can be made to meet demand.

Many of the above factors are identified in the Rural Residential Development Planning Practice Note 37 (DTPLI, June 2015). This practice note should be referred to when assessing and identifying potential locations for LDRZ land.



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6 O P T I O N S A S S ES S M E N T

This Chapter explores possible options for increasing the supply of LDRZ land, or land which could accommodate similar development outcomes, and assesses these options against the framework outlined in Chapter 5.

The assessment of each option is based on the following rating:

Low: where the option does not meet the relevant key principle and as such, reflects a constraint to the achieving LDRZ land (or a similar development outcome) on the land.

Medium: where the option partially meets the relevant key principle.

High: where the option is considered to meet the relevant key principle.

Unknown: where further work may be required in order to assess the extent to which the option meets the relevant key principle.

6.1 Option 1: Rezoning /Reschedule GWZ land in Strathtulloh

Option Overview

Option 1 involves either the rezoning of GWZ land in Strathtulloh to LDRZ, or an adjustment of the schedule to the GWZ to allow subdivision of lots in the order of 4,000m2.

While the general location of Strathtulloh appears appropriate (refer options assessment below) for LDRZ land, the rezoning and re-scheduling of the GWZ are problematic in terms of policy constraints. Both options would require Council and Ministerial approval and then be ratified by the House of Parliament. Furthermore, the likelihood of re-scheduling the GWZ to allow sub-division of 4,000m2 is limited given the lack of precedence of such a schedule in metropolitan Melbourne.

Option1 relates to land to the north of Greigs Road and west of the Urban Growth Boundary. The land includes the existing rural living estate in Strathtulloh and is shown in Figures 6.1. This land is within the area marked ‘B’ in the Incorporated Map shown in the Schedule to the GWZ. This land is reasonably well-located with respect to future urban areas in the Toolern PSP and Rockbank South PSP.



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Figure 6.1: Option 1: Strathtulloh

Produced by Essential Economics using MapInfo, StreetPro and BingMaps



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Option Assessment

Discussion on the extent to which Option 1 meets the key principles is provided below:

Integration with existing urban areas: Option 1 is reasonably well-positioned in regard to the future urban areas of Melton to the north. The Toolern PSP has been prepared; however, timing on the preparation of the Rockbank South PSP is unknown. The area to the north of Greigs Road adjoins an existing rural lifestyle living area.

RATING – MEDIUM (future HIGH)

Access to facilities and services: In the future, when the Toolern and Rockbank South PSPs are developed, the Option 1 will be well located with respect to accessing facilities and services provided in the existing urban areas to the east including schools, retail, community, recreation and civic uses.

RATING – MEDIUM (future HIGH)

Market demand and amenity: An existing rural lifestyle community exists in Strathtulloh which has largely developed with large lots of at least 1ha in size. It is anticipated this general location would attract market interest in 4,000m2 (or one acre) lots or larger.

RATING - HIGH

Constraints to residential development: At this point in time, it is understood that no key constraints to urban development exist in this area (apart of policy constraints – refer below). Further investigation may be required.

RATING - HIGH

Policy constraints: As described earlier, the rezoning of GWZ can be a difficult process with approval needed by Council, the Minister and then ratification from the House of Parliament.

RATING - LOW

Impact on agriculture: Having regard for the comparatively limited extent of land (i.e. 50-80ha) required to accommodate LDRZ land in the context of 21,838ha of GWZ throughout the City of Melton, the impact of the loss of land for agricultural uses can be considered limited.

RATING - HIGH

Provision of required infrastructure and Council services: The land to the north of Greigs Road adjoins an existing rural lifestyle residential area. The extent to which the land can be serviced adequately is unknown.

RATING - UNKNOWN



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While relatively isolated at present, Option 1 will be well-connected to future urban areas to the north in the longer-term as the Toolern and Rockbank South PSP areas develop. Further work is required to understand the ease and cost of providing the required infrastructure and services to the area. The policy constraints associated with rezoning/rescheduling GWZ land are likely to be major constraints to the provision of LDRZ in this location.

6.2 Option 2: Rezone/Rescheduling GWAZ Land

Option Overview

Option 2 is similar to Option 1; however, relates to GWAZ land to the west of the Melton township. This option involves the rezoning of GWAZ land to LDRZ, or an adjustment of the schedule to the GWAZ to allow subdivision of lots in the order of 4,000m2.

Having regard for the 300m buffers associated with Djerriwarrak Creek and the RCZ that restrict subdivision of GWAZ land (refer Section 1.3), land considered in Option 2 relates to land that is to the west of and has frontage to Harkness Road to the north of the western Freeway, and land to the west and with frontage to Brooklyn Road to the south of the Western Freeway. This land is shown in Figure 6.2.

As with Option 1, the rezoning and re-scheduling of the GWAZ is problematic in terms of policy constraints. Both options would require Council and Ministerial approval, and then be ratified by the House of Parliament. Furthermore, the likelihood of rescheduling the GWAZ to allow sub-division of 4,000m2 is limited given the lack of precedence of such a schedule in metropolitan Melbourne.



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Figure 6.2: Option 2: GWAZ Land




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Option Assessment


Integration with existing urban areas: Land included in Option 2 is well-positioned with regard to the existing urban area of Melton to the east, as well as future urban areas planned in the Melton West PSP. The provision of LDRZ land also has the potential to provide a transition (or buffer) between conventional existing and planned residential/urban areas to the east and the GWAZ and Djerriwarrh Creek to the west.

RATING - HIGH

Access to facilities and services: Option 2 is well-located with respect to the existing facilities and services provided in Melton, as well as any future facilities that may be provided in the Melton West PSP area.

RATING - HIGH

Market demand and amenity: It is anticipated that the high level of access to facilities and services and rural outlook over Djerriwarrh Creek to the west would be considered favourable by the market.

RATING - HIGH

Constraints to residential development: At this point in time, the constraints to residential development are unknown and may need further investigation.

RATING - UNKNOWN

Policy constraints: Similar to GWZ land, the rezoning of GWAZ can be a difficult process with approval needed by Council, the Minister and then ratification from the House of Parliament.

RATING - LOW

Impact on agriculture: Having regard for the comparatively limited extent of land (i.e. 50-80ha) required to accommodate LDRZ land in the context of 22,462ha of GWZ and GWAZ land throughout the City of Melton, the impact of the loss of land for agricultural uses is expected to be limited.

RATING - HIGH

Provision of required infrastructure and Council services: The land’s proximity to existing urban areas and the future Melton West PSP means the provision of infrastructure and Council services is unlikely to be a major issue. This may require further investigation.

RATING - HIGH (preliminary)



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Option 2 presents as an option that will be well-connected to existing and future (Melton West PSP) urban areas. Further work may be required to understand the ease and cost of providing required infrastructure and services to the area, as well as any environmental and biodiversity constraints associated with subdividing the land. The policy constraints associated with rezoning/rescheduling GWAZ land are likely to be a major constraint to the provision of LDRZ in this location.

6.3 Option 3: Existing Melton East LDRZ Land

Option Overview

Option 3 involves encouraging a greater density of residential lot sizes in the existing LDRZ land to the immediate east of the Melton township, refer Figure 6.3. Currently, residential lots in this area generally range in size from 4,000m2 to 1ha.

As stated in Section 1.3, subdivision of LDRZ land requires a permit. For a permit to be granted each lot must be at least 0.4ha (or 4,000m2) in areas where reticulated sewerage is not connected, or at least 0.2ha (or 2,000m2) in areas that are connected to reticulated sewerage. Council advise that this LDRZ area is not currently connected to reticulated sewerage.

Therefore, investment in connecting lots to reticulated sewerage is required if both vacant and occupied lots are to be subdivided to 2,000m2. Having regard for the majority of lots being larger than 4,000m2, connecting the area to reticulated sewerage has the potential to significantly increase the supply of LDRZ lots by more than 500 lots, assuming all occupied and vacant LDRZ lots can be subdivided to 2,000m2.

The costs associated with connecting the land to reticulated sewer are unknown at this stage; however, these costs may represent a constraint to private land owners subdividing their land. Furthermore, as identified in Section 2.5, many of the occupied LDRZ lots are encumbered with large houses sited centrally to their respective lots, which may constitute an additional constraint to creating LDRZ supply on existing occupied lots.

Option Assessment


Integration with existing urban areas: Option 3 is well-positioned in regard to the future urban areas of Melton, with the Melton township located to the immediate west.

RATING – HIGH

Access to facilities and services: Option 3 is well located with respect to accessing facilities and services provided in the existing urban areas to the west including schools, retail, community, recreation and civic uses.

RATING – HIGH



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Market demand and amenity: An existing LDRZ lifestyle community exists in this location, with residential lots generally tightly held and only rarely become available for sale. Discussions with local real estate agents indicates a strong demand for LDRZ land in this locality.

RATING - HIGH

Constraints to residential development: Costs associated with servicing land with reticulated sewerage may be a considerable constraint from a private land owner perspective. These costs should be investigated.

RATING - UNKNOWN

Policy constraints: None.

RATING - HIGH

Impact on agriculture: None, the land is already zoned for residential purposes.

RATING - HIGH

Provision of required infrastructure and Council services: The land will need to be connected to reticulated sewer. The costs associated with this requirement will need to be investigated.

RATING - UNKNOWN

Option 3 presents as a sensible option to increase the supply of residential lots in the order of 2,000m2 to 4,000m2; however, investigations into the costs associated with reticulated sewer provision are required to ascertain the extent to which this may be a constraint to the private land owners.



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Figure 6.3: Option 3: Existing LDRZ Land




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6.4 Option 4: Melton Township Interface Precinct

Option Overview

Option 4 involves either the rezoning of a proportion of GWZ land identified in the WPNGWMP at Precinct 5 or the ‘Melton township Interface Precinct’ (refer Section 1.3), or an adjustment of the schedule to the GWZ to allow subdivision of lots in the order of 4,000m2.

The land is located to the north of the existing urban areas of the Melton township.

This location, which is shown in Figure 6.4. In the western part of the precinct, the majority of lots are between 10-12ha in size, although a few larger lots are located in the western extremities of the precinct. Lots are generally larger than 15ha in the eastern part of the precinct, with some lots larger than 30ha in size.

The general location is suitable for LDRZ, or rural lifestyle lots within the GWZ, having regard for its proximity to services and facilities. In addition, the land could potentially act as a transition area from urban areas to the south to rural areas in the north.

While the rezoning and re-scheduling of the GWZ are can be problematic in terms of policy constraints (as discussed previously), the WPNGWMP identifies the potential to review the minimum subdivision size in this area subject to a supply and demand assessment for rural residential land.



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Figure 6.4: Option 4: Melton Township Interface Precinct


Option Assessment


Integration with existing urban areas: Option 4 is well-positioned in regard to existing and future urban areas of Melton to the south.

RATING – HIGH

Access to facilities and services: Option 4 is well located with respect to accessing facilities and services provided in the existing urban areas to the south including schools, retail, community, recreation and civic uses. MacPherson Park Recreational Reserve is also located to the immediate north in the western part of the precinct.

RATING – HIGH



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Market demand and amenity: The high level of access to facilities and services would be considered favourable by the market.

RATING - HIGH

Constraints to residential development: At this point in time, it is understood that no key constraints to residential development exist in this area (apart of policy constraints – refer below). Further investigation may be required, including assessment of the biodiversity values of the area as recommended in the WPNGWMP.

RATING - HIGH

Policy constraints: As described earlier, the rezoning of GWZ can be a difficult process with approval needed by Council, the Minister and then ratification from the House of Parliament. However, the WPNGWMP does identify the opportunity for rural lifestyle living in this area.

RATING - MEDIUM

Impact on agriculture: Having regard for the comparatively limited extent of land (i.e. 50-80ha) required to accommodate LDRZ land in the context of 21,838ha of GWZ throughout the City of Melton, the impact of the loss of land for agricultural uses can be considered limited.

RATING - HIGH

Provision of required infrastructure and Council services: The land to the south of Minns Road adjoins a developing residential area of urban density. The extent to which the land can be serviced adequately is unknown.

RATING – HIGH (preliminary)

Option 4 will be well-connected to urban areas to the south in the near-term. Further work is required to understand the ease and cost of providing the required infrastructure and services to the area. The policy constraints associated with rezoning/rescheduling GWZ land are likely to be a constraint to the provision of LDRZ in this location; however, rural lifestyle opportunities have been identified for this area in the WPNGWMP.

6.5 Option 5: Do -nothing

In addition to the options described above, Council may also seek to ‘do-nothing’ with regard to the future provision of LDRZ-type development in the City of Melton. At present, opportunities for rural lifestyle lots of 1ha or more exist. In addition, the potential to subdivide GWZ and GWAZ land to 1ha also exists and would add to supply.

This provides an element of housing diversity; however, this approach will not satisfy demand for lots less than 1ha. The implication of not providing for this demand is a lack of housing diversity, with this demand being accommodated elsewhere. This current situation is



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highlighted with demand for LDRZ development of less than 1ha being currently met in nearby Hopetoun Park, in Moorabool Shire.

6.6 Other Considerations

While Part A of this report indicates sufficient supply of GWZ and GWAZ land exists to accommodate demand for lots in the order of 1-5ha, merit exists in considering the opportunity for re-scheduling the GWZ/GWAZ land in selected locations to accommodate smaller rural lifestyle lots of this size.

At present, the existing subdivision formula for GWZ land marked ‘A’ in the Incorporated Map shown in the Schedule to the GWZ in the Melton Planning Scheme will encourage the dispersal of many small rural lifestyle estates containing 1-5ha lots (similar to the shown in Figure 1.3, refer p12) throughout GWZ land in the City of Melton.

Benefits exist in consolidating demand for 1-5ha lots in particular areas, including the land identified in Options 1-4 that are accessible to facilities and services. These benefits may include the following:

Greater efficiency in provision of required infrastructure (e.g. roads, utilities, etc)

Greater efficiency in provision of services (e.g. bin collection, public transport, etc)

Greater potential to create a sense of community and its associated benefits

Potential to encourage site consolidation (where required) and attract experienced property developers that can provide a well-planned rural lifestyle outcome.

The existing rural lifestyle estate in Strathtulloh is an example of a potential outcome of consolidating 1-5ha lots in a particular location.

6.7 Conclusions

The key implications of this options assessment are summarised below:

1 All four options present as appropriate locations for LDRZ land, based on the current understanding of the capability of all four locations to accommodate such development. Further investigations regarding constraints and serviceability may be required for some options.

2 Options 3 does not require any changes to the land use zone, therefore, potential exists for additional supply of LDRZ lots to be created in the near-term. However, this will depend on the financial viability of providing reticulated sewer to the area for individual land owners.

3 Option 4 presents as possibly the preferred option of those that require rezoning or re-scheduling of GWZ/GWAZ land (i.e. Options 1, 2 and 4). The WPNGWMP identifies potential for rural lifestyle living in this locality.



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4 Depending on the outcomes of further investigations, one option may be to choose multiple locations to accommodate the demand for 50-80ha of LDRZ land in the City of Melton.

5 While sufficient supply of land exists to accommodate rural lifestyle lots of 1-5ha, consideration may be given to the re-scheduling of land identified in Options 1, 2 and 4 to accommodate such lots in order to encourage consolidation of rural lifestyle areas.

In summary, all options identified in Part B of this report have some merit in their ability to address the projected level of demand for LDRZ-type lots. However, it is important to note that their suitability cannot be established until further technical work is carried out which will examine a range of issues including servicing and environmental constraints.

Table 6.1 provides an overview of the options assessment.



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Table 6.1: Options Assessment – Overview

Key Principle Option 1: Rezoning/Rescheduling

GWZ Land in Strathtulloh

Option 2: Rezoning/Rescheduling

GWAZ Land

Option 3: Encouraging increased density in existing LDRZ land in

Melton East

Option 4: Rezoning/Rescheduling

GWZ Proportion of Melton Township Interface Precinct

Integration with existing urban areas

MEDIUM (FUTURE – HIGH)

HIGH HIGH HIGH

Access to facilities and services

MEDIUM (FUTURE – HIGH)

HIGH HIGH HIGH

Market demand and amenity

HIGH HIGH HIGH HIGH

Constraints to residential development

HIGH (preliminary –

further investigations may be required)

HIGH (preliminary –


UNKNOWN HIGH (preliminary –


Policy constraints LOW LOW HIGH MEDIUM

Impact on agriculture HIGH HIGH HIGH HIGH

Provision of required infrastructure and Council services





Comment Further investigations on constraints and provision of infrastructure area required.

Policy constraint will be a major issue.

Further investigations on constraints and provision of infrastructure area required.

Policy constraint will be a major issue.

Potential short-medium term option. Some further investigations on the costs

of providing reticulated sewer required.

Potential short-medium term option. Some further investigations on the costs

of providing reticulated sewer required.

ity of melton rural lifestyle land supply and demand ... · housing affordability issues,...

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