This council wants more homes built in their area but fears ‘fast-track’ plans will slash supply

A housing stoush with a difference is unfolding in Melbourne’s south-east where a developer is at loggerheads with the local council who are demanding more homes be built on the valuable site.

Extensive talks with the community and planning authorities had produced draft plans for 3000 apartments and townhouses to be built at a site dubbed the East Village, in Bentleigh East.

But the local mayor claims the developer is now trying to fast-track the major housing project, while cutting the number of homes planned, and she is demanding the state government intervene.

Glen Eira mayor Simone Zmood said property developer SEMZ has applied to have the project dealt with as part of the state government’s Development Facilitation Program (DFP) – a pathway that allows Planning Minister Sonya Kilkenny to approve major residential and commercial projects to bypass lengthy local council processes.

She told The Age that conversations between the project manager and the council indicated the developer now plans to construct between 1800 and 2400 dwellings on the site, significantly fewer than originally planned.

That would hamstring Glen Eira’s ability to meet ambitious housing targets set by the government, and has led to the mayor seeking an urgent meeting with Kilkenny.

The developer denied claims it plans to build fewer homes, but would not clarify how many it is seeking to construct despite repeated inquiries from this masthead.

“There have been no changes to the proposed dwelling numbers in the proposed amendments to the East Village planning framework,” a SEMZ spokesman said.

“The amendments are intended to facilitate housing delivery by bringing forward retail amenity, supporting the investment required for residential development and creating a well-serviced community from the outset.”

Public plans prepared by the Victorian Planning Authority from 2017 and 2020 show 3000 dwellings were earmarked for the East Village site plus office and retail space.

The council fears any shortfall will put pressure on other parts of the municipality to make up the numbers.

“If developers can use the DFP to build fewer homes it makes a mockery of the whole system. Other developers will copy this approach, placing the state’s housing growth strategy at risk,” Zmood said.

“That is essentially our last greenfield site. Glen Eira is predominantly a residential area. So there is very little opportunity for brand-new, big developments.”

According to a report commissioned by Glen Eira council, and completed by urban planning firm Mesh in January, under-development of core sites risks undermining the approved East Village plans.

“Notwithstanding that (the early stages of development in the precinct) it is apparent that the approvals that have been issued to date are not achieving the projected average residential density of development,” the report noted.

“We want to have a conversation with the minister. We work with the government to deliver the outcomes for the state and play our part,” Zmood said.

“The challenge for us is the minister could just make a decision really quickly without hearing our perspective of what the pitfalls are, particularly in the East Village application.”

Independent infrastructure advisor and board member of WoMeda (West of Melbourne economic development alliance) Kelvyn Lavelle said: “Without knowing the specifics of this case, all areas of Melbourne have a responsibility to increase housing supply.

“However, the heavy lifting should not be left to the outer west and north-west suburbs alone,” he said.

“The established inner and middle ring suburbs should be developing as much appropriate urban renewal and in-fill development as possible.”

Zmood said she feared the developer is pursuing short-term profit at the expense of the council’s ability to deliver increased inner-city housing.

“If I was putting it bluntly, they are going for a short-term outcome. They are trying to satisfy what they are hearing from a retail tenant … for short-term financial gain. But in doing so, they are undermining the long term [housing] goals,” she said.

Zmood said a pre-application has been submitted to fast-track the process. Until the council sees the plans, it won’t know exactly how many dwellings are being proposed.

A Victorian government spokesperson said “no formal application has been made, and any proposal will be considered on its merits”.

“Our planning reforms are all about cutting red tape, speeding up decisions and enabling more Victorians to have a home of their own faster,” they said.

Zmood said two other strategic sites in the area, earmarked for high density housing growth, are now subject to applications through the fast-track development scheme, further pipping the council’s ability to deliver more inner-Melbourne homes.

These include, land adjacent to the Caulfield Racecourse, owned by the Melbourne Racing Club, where plans for 2000 dwellings were scrapped as a school is now proposed for the site. “That’s gone down to zero,” she said.

And Zmood said out of two towers planned at the Caulfield Village, one will be used for 716 student accommodation units.

“That site [could have suited] more diversity and density, not just studio one-bedrooms. We want to make it easy for families and couples and singles to be living in these places, and Caulfield Village is right next to Caulfield station,” she said.

Zmood said that since 2024, eight DFP proposals have been submitted and approved by the fast-track process (three in Elsternwick, three in Murrumbeena and two in Carnegie), but as far as she is aware, no construction has started.

“We really question whether the process is achieving its goals, and the state’s goals,” she said.

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Angelica Snowden is a senior reporter on The Age’s City team.Connect via email.AdvertisementAdvertisement