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Inclusionary housing pilot on surplus government land

The Victorian Government is committed to better meeting the housing needs of Victorians by utilising surplus government land with good access to jobs and transport for the purposes of much need housing.

As part of the government’s housing strategy, Homes for Victorians, the now the Department of Transport and Planning (DTP) is undertaking an inclusionary housing pilot (the pilot) on six surplus government land parcels. The pilot will deliver a mix of social, affordable and market housing.

Delivering a mix of social, affordable and market housing

The pilot will provide a minimum of 100 new social housing homes which will be delivered in partnership with a registered housing agency (community housing). The pilot does not include requirements for social housing that is normally provided by or on behalf of the Victorian Government (public housing).

The pilot also encourages the provision of affordable housing on each of the sites but does not set a minimum requirement. The remaining dwellings on each site can be made available to the private market.

The six sites will be developed in close consultation with government departments and agencies as well as the relevant local councils.

Expression of interest (EOI)

Proposals for the development and sale of all six sites were sought through an EOI process. The invitation to participate in the EOI was released via Tenders VIC on 8 August 2018 and closed 13 September 2018.

The shortlisted bidders were announced in October 2018.

The successful bidders are the Barnett Foundation and Met Communities (guaranteed by Metricon).

How will the inclusionary housing pilot be conducted?

The pilot will be conducted over five key phases:

Phase one has been completed – Six suitable surplus government sites were identified as appropriate for inclusion in the pilot and divided into tranche one and tranche two.

Phase two has been completed – New planning controls were introduced for four of the six sites; Wodonga, Boronia, Broadmeadows and Parkville (Tranche one). These controls were reviewed for each of the sites through the Government Land Standing Advisory Committee process and were introduced on 5 July 2018.

Phase three has been completed – Bidders were invited to participate in the Expression of Interest (EOI) process for the sale and development of all six sites. Submissions have been evaluated and a short-list of bidders was announced.

Phase four has been completed – The selected bidders will now seek planning approval from the Minister for Planning for the tranche one sites before construction can commence.

Phase five has been completed – New planning controls were introduced for Noble Park and Reservoir (tranche two). These controls were reviewed by the the Government Land Standing Advisory Committee and were introduced on 11 August 2023 and 25 January 2024.

Wodonga site –  A planning permit PA2302085 was approved. Construction has commenced.

Location of the pilot sites

Tranche one

Tranche two

Frequently asked questions

The government received a very positive response to the invitation to participate in the EOI. Bidders embraced the opportunity to provide an inclusive mix of social, affordable and market housing. Submissions were innovative with high-quality design and amenity solutions proposed.

Seven bidders were shortlisted based on capability, capacity and approach to the inclusionary housing pilot.

These bidders proceeded to the negotiation phase to define their respective approaches to social housing models, as well as outlining the structure of their partnerships with registered community housing providers. Bidder’s also put forward their proposals for development of the site through detailed concept plans which included density and dwelling mix, program timelines and their financial offers for the subject sites.

The selected bidders are now seeking planning approval before construction can commence.

Both tranche one and tranche two were presented to the market at the same time through the EOI process. In tranche one, the first four sites were presented to the market having already undergone an advisory committee process which established new planning controls.

In tranche two the successful bidder(s) had their preferred design reviewed by the advisory committee at the same time as consideration of the proposed planning controls.

As a pilot, this dual approach tested the different ways social and affordable housing can be undertaken to achieve desirable outcomes.

The Planning and Environment Act 1987 was amended on 1 June 2018 to include the facilitation of affordable housing as a core objective of the Act, in addition to the introduction of a clear definition of affordable housing.

The amendment to the Act also classified social housing as a form of affordable housing.

Affordable housing is various forms of housing solutions that can include social housing, but also includes other housing initiatives and or support services that provide for the housing needs of very low-income households, low-income households and moderate-income households.

Social housing is a combination of both public housing and community housing (as per the Housing Act 1983).

Public housing is non-profit housing that is delivered on behalf of the Government and or the relevant department (as per the Housing Act 1983).

Community housing is housing that is owned, controlled and or managed by a registered community housing provider.

All social housing provided through the pilot is categorised as community housing.

Social housing benefits those who are vulnerable to severe housing stress by providing the shelter to help them avoid homelessness, stabilise their financial situation, increase their security and improve their mental health outcomes.

Social housing also benefits the wider community due to the direct economic impacts that it provides. Labour market studies show that workforce participation and productivity relate directly to the stability of an individual’s housing tenure.

Having a home makes it possible to access employment, have an address to enrol in education and training opportunities, and provides a safe place to raise a family.

This serves to circumvent intergenerational inequality, which further strengthens future economic involvement and contribution.

Page last updated: 16/04/25