Managing Residential Development Advisory Committee

Submission by the Boroondara City Council (endorsed by the Urban Planning Special Committee on 7 March 2016)

Introduction

The City of Boroondara welcomes the opportunity to provide a submission to the Managing Residential Development Advisory Committee (the MRDAC).

Council notes that the scope of the submission was not specifically defined by the MRDAC. Council was advised that the submission should respond to any issues arising from the Residential Zones State of Play (RZSP) Reports and the key issues set out in the MRDAC Terms of Reference.

Council’s submission responds to the RZSP reports, in particular the Overarching Report, the Eastern Subregion Report and the List of Suggested Improvements to the Residential Zones. The submission also addresses the key issues that will be considered by the Committee as specified in the Committee’s Terms of Reference, including:

 the process by which the new residential zones were implemented.  the current application of zones that allow for residential development in the context of managing Melbourne and Victoria's residential growth in a sustainable manner and improving housing affordability.  the level of evidence and justification needed when preparing relevant planning scheme amendments.  the suggested improvements to the residential zones.

Council’s submission refers to the Boroondara Housing Strategy (BHS), adopted by the Boroondara City Council on 14 December 2015 (Appendix A). The BHS contains detailed information and analysis that directly respond to the MRDAC’s consideration on the current application of the zones and residential development, including Council’s long term housing vision for the municipality, the key housing issues in Boroondara, the municipal demographic trends, and a capacity analysis of the current mix of zones to accommodate future housing demand to 2031.

Council’s submission also refers to its previous submissions to the Victorian Government, including the submission on the Plan Melbourne Refresh Discussion Paper (endorsed by the UPSC on 14 December 2015, an excerpt as relevant to housing is provided at Appendix B) and the submission on the Technical Review of the Residential Zones (endorsed by the UPSC on 19 October 2015, Appendix C).

Council’s comments on the “list of suggested improvements” are provided at Appendix D.

The RZSP Reports

The Overarching Report provides an overview of Victoria’s demographic and housing profile, the projected population growth, housing demand, and impacts of the new residential zones since implementation.

Council’s long term vision in managing residential development and housing issues in Boroondara is set out in the Boroondara Housing Strategy. The Strategy provides an overview of the housing profile of Boroondara (based on the 2011 Census) with regards to the municipality’s demographics, existing household and dwelling types, and dwelling densities. It also discusses housing demand in the municipality to 2031

1 based on .id Consulting’s population and dwelling forecast, which is compared with dwelling capacity based on an analysis by SGS Economics and Planning Pty Ltd.

Council advises the MRDAC to refer to the BHS (Appendix A) for a detailed analysis on these types of information at a local level in the City of Boroondara.

Comments on other specific findings in the RZSP reports in relation to Boroondara are provided below.

The early impact of the new residential zones on housing supply

The “new residential zones impact analysis” section of the Overarching Report acknowledges that “more time is required before the full impact of the new residential zones can be properly assessed”. However, the report examines the early impacts of the zones.

The report finds no identifiable impacts on aggregate housing supply (as a result of the zones) at the state or metropolitan level. It notes that Victoria has instead experienced record residential building approvals including substantial increases in approvals for medium and high density dwellings for the 2014/15 financial year.

However, the report notes that specific locations such as the Residential Growth Zone (RGZ) areas have become highly attractive for redevelopment given that the RGZ provides developers with significant certainty of high yields.

With regards to Neighbourhood Residential Zone (NRZ) areas, the report suggests that the application of the NRZ has not resulted in a shortage of new dwellings in metropolitan Melbourne as was feared when the new zones were introduced. However, the report suggests that the impact of the NRZ may be greatest in local housing markets where there is extensive land in the NRZ such as in Boroondara, Glen Eira and Bayside. It suggests more time is required to fully understand the impact of the NRZ on the supply of new medium density dwellings in these areas at a local level, and the associated impacts on housing diversity, choice and price.

It is considered that, although the reports acknowledge that more time is required to properly assess the impact of the new residential zones, it is misleading to imply that the impact of the NRZ on local housing supply, diversity and affordability may be greatest in local housing markets such as in Boroondara without proper monitoring and analysis.

The new residential zones in Boroondara were approved on 19 June 2014. The BHS and the RZSP reports identify the need for continued monitoring and review of the zones over the next few years to allow for a better understanding of the effect of the new zones.

The “expected growth” to be accommodated in Boroondara

The Eastern Subregion Report identifies the City of Boroondara as one of the “middle municipalities” in the Eastern Subregion (together with Manningham, Whitehorse and Monash), and that the middle municipalities are expected to accommodate the largest share of the region’s population growth. This assumption may be due to the Victorian Government’s current Plan Melbourne Refresh project as the Discussion Paper proposed a 70/30 housing target to shift the growth to middle suburbs.

Council reiterates its objection to any proposed housing target, for reasons outlined in its submission to the Plan Melbourne Refresh Discussion Paper. An excerpt of Council’s previous submission to the Discussion Paper (where it is relevant to housing) is included as part of this submission (Appendix B).

The Eastern Subregion Report also identifies that the City of Boroondara has the Eastern Subregion’s highest population density and has been one of the leading areas of housing growth within Melbourne’s established municipalities. The report notes a high proportion of apartment approvals in Boroondara, Manningham and Whitehorse since the early 2000s. Further, there was a notable increase in apartment approvals in Boroondara in the last five years, which have nearly tripled from approximately 1200 in the 2006-2010 period to 3600 in the 2011-15 period.

Given the above findings, it is evident that Boroondara has been accommodating a fair share of the subregion’s residential growth, including medium and high density residential development.

In addition, Council has reviewed the planning permit data before and after the implementation of the new residential zones in the City of Boroondara. Prior to the introduction of the new residential zones, approximately 56% of multi-dwelling applications in Boroondara were for two dwellings on a lot (dual occupancy). Applications for developments of 3 to 9 dwellings were predominantly distributed across areas that are now in the GRZ, RGZ or along main roads in the NRZ.

Since the introduction of the new residential zones in June 2014, the share of dual occupancy developments has increased to 70%, while the share of applications for three or more dwellings has reduced from an average of 44% to about 30%. At a municipal level, although there has been a marginal percentage adjustment in the types of applications being received, dual occupancy applications, which are permitted in all three residential zones, remain the most common residential application type in the City of Boroondara.

Importantly, the capacity analysis contained in the BHS confirms that the current mix of residential and commercial zones and built form controls provide more than sufficient capacity to accommodate the projected housing demand in Boroondara to 2031.

The BHS identifies that there is a capacity for an additional 62,546 dwellings in the municipality, including 38,291 additional dwellings in the residential areas and 24,255 additional dwellings within the commercial areas (activity centres, commercial corridors, neighbourhood and local centres). This capacity is more than sufficient to accommodate the forecast housing demand of 15,567 additional dwellings by 2031. As a comparison, VIF 2015 projects a dwelling demand of 15,688 in Boroondara by 2031, well within the dwelling capacity in Boroondara under the provisions of the current zones.

Therefore, certain perception in the planning profession that Boroondara’s residential zones are unreasonably “conservative” and “locking up” the suburbs is misconceived and unjustified.

Council anticipates a large number of additional dwellings be located within existing commercial areas such as Camberwell Junction, Kew Junction, Glenferrie, as well as some of the neighbourhood shopping centres and commercial corridors. Projections also suggest that suburbs such as Hawthorn East, Hawthorn, Camberwell and Kew

3 will accommodate the largest number of additional dwellings. Council’s adopted structure plans and relevant policies encourage higher density residential development to be located within the commercial centres. More restrictive planning controls in high amenity residential areas are intentional and coordinated strategic (long term) planning approach to motivate change in appropriate locations.

New housing in commercial areas is likely to be in the form of apartment developments that benefit from being well located to services and public transport. Housing in these locations is integral to the viability of Boroondara’s commercial areas and providing a diverse range of housing in Boroondara.

It is considered that the current mix of residential and commercial zones provide more than sufficient capacity to accommodate the forecasted housing demand. The existing zones provide a solid basis from which to build Boroondara’s housing future. Little change is needed to the existing mix of zones to allow the City of Boroondara to meet forecasted housing need to 2031.

Neighbourhood character

The continued protection of Boroondara’s highly valued neighbourhood character and heritage places has been identified as one of the key objectives of the BHS. Neighbourhood character should be given greater consideration in future review of the zones in order to maintain the desirability of Melbourne's East as a place to live and ensure that growth does not adversely impact on liveability and neighbourhoods.

Determination of appropriate locations for higher density residential development at a local level should be guided by Council. Council supports the application of mandatory height controls where appropriate to achieve desirable built form outcomes.

Infrastructure and services

Council also urges the MRDAC to consider the importance to strategically assessing and planning for the provision and upgrading of key infrastructure. Projected growth must be considered in conjunction with the capacity and functions of key infrastructure and services such as drainage, sewerage, water supply, open space, social services and public transport.

If these services cannot serve an additional population in particular locations, it would be unsustainable to increase densities in these locations until the necessary infrastructure can support the change.

Brownfield sites

Council considers that the MRDAC has an opportunity to review the opportunities available at metropolitan Melbourne’s brownfield sites, many of which in the inner western and northern suburbs have planning frameworks and (in some cases) planning permits in place to deliver new housing supply. However, a substantial number of these areas remain vacant and undeveloped and have so for years. The Victorian Government should facilitate development to occur in these areas which will likely have a notable impact on Melbourne’s capacity to accommodate projected population growth and the bigger picture of meeting housing needs.

Council has previously expressed its concern and disappointment with the failure of the Plan Melbourne Refresh Discussion Paper to adequately address the important role which Places Victoria and other agencies should be playing in catalysing urban renewal on brownfield land. Council considers that the Victorian Government could play a major role through an enhanced Places Victoria to coordinate the infrastructure investment needed or to use its powers under the Urban Renewal Victoria Act 2003 to declare project areas, compulsorily acquire land and begin delivering projects. These projects would make meaningful contributions to new housing supply in areas where new housing supply and liveability enhancements are desirable.

The Victorian Government should bear some of the responsibility for driving new housing supply through its own institutions and legislative frameworks on key sites and precincts. Council continues to express its concerns on the persistent reliance of the Victorian Government on the planning system to facilitate private investment and market-led development outcomes, as opposed to initiating and leading strategic projects through its own institutions.

Further details are available at Appendix B where an excerpt of Council’s previous submission to the Discussion Paper is provided.

Mandatory controls

The Overarching Report acknowledges that mandatory controls in the new residential zones provide greater certainty in development outcomes. However, it suggests that the mandatory controls in the NRZ may also result in issues such as restricting development potentials of larger lots and impact on the pitch of roofs.

Council agrees that the mandatory controls provide far more certainty to the community and developers with regards to the potential development outcomes for a site or an area. It is considered that it is important to continue the application of mandatory height controls in appropriate locations to ensure protection of neighbourhood character.

It is also noted that the NRZ allows for vacant lot subdivision of larger sites to occur in appropriate locations subject to planning permit approval. This approach subsequently negates the argument that large sites are potentially wasted in the NRZ where only two dwellings are otherwise allowed.

The committee is also advised to refer to Council’s previous submission to the Residential Zones Technical Review project (Appendix C) which covers Council’s responses to the technical aspects of the zones, such as the issues related to the pitch of the roofs in the NRZ area, particularly within the Special Building Overlay where the ground floor level needs to be raised 300mm above the flood level. Council’s submission had suggested that the Minister amendment the schedule to the NRZ to allow for any applicable flood level in addition to the maximum height of 8m.

Balance between protection and growth

The Overarching Reports notes that the majority of councils have allowed a mix of incremental and higher density development in proximity to activity centres and major transport routes through the zones. The Taskforce has commissioned new work to

5 further investigate land zoning and dwelling growth along public transport corridors which will be available to the MRDAC.

It is regrettable that the newly commissioned report on further investigation along public transport corridors is not available to Council for review through this process. It is also unclear whether this research will be available to third parties prior to any public hearings being held.

Council is disappointed with the lack of transparency and fairness in the MRDAC process where such reports are not subject to meaningful discussion and debate prior to the consideration of the MRDAC. Without the ability to review and respond to the report, Council can only stress that further investigation must take into consideration key infrastructure capacity such as public transport, traffic impact, roads, and drainage. The protection of neighbourhood character and amenity of the area must also be an important consideration in any review of the transport corridors.

The Overarching Report also considers that the potential application of minimum subdivision controls and/or the further expansion of the NRZ may shift the balance between growth and protection, particularly in areas that have already applied the NRZ extensively. It suggests that the MRDAC provides recommendations on this matter.

It is considered that the impacts of the new zones are yet to be properly analysed. Council is yet to form a position on whether to introduce minimum subdivision controls or review the NRZ areas. Further strategic work and future review of the zones will be guided by the BHS.

Importantly, Boroondara’s approach in introducing the new residential zones places emphasis on the protection of valued residential character and amenity. This has been subsequently balanced with development opportunities and sustainable growth evidenced by Council’s capacity work prepared by SGS Economics and Planning (Boroondara Housing Capacity Analysis - Technical Report, June 2015).

Other key issues to be considered by the MRDAC

The process by which the new residential zones were implemented

Boroondara’s residential zones implementation history was outlined in the Eastern Subregion Report (Residential zones history, p. 13). However, a number of minor errors with regards to the chronological order of the events were identified. Council provides the correct information below for the MRDAC’s information:

Event omitted under “2013”:

 Council adopted the revised neighbourhood character precinct statements and resolved to apply the new residential zones through Amendment C190 to the Boroondara Planning Scheme.

Events that should be recorded under “2014” in chronological order:

 Draft Amendment C199 (additional RGZ areas) was prepared by Council and the RZSAC undertook notice in accordance with its Terms of Reference. The RZSAC delivered an Advisory Committee Report in June 2014.

 Amendment C190 gazetted on 19 June 2014.  Council undertook a municipal-wide consultation process on the approved residential zones during July and August 2014.  Amendment C199 was gazetted on 9 October 2014.  Amendment C225 (consideration of schedules 1 and 2 to the NRZ) was prepared by the Minister for Planning and the former DTPLI undertook notice in accordance with the RZSAC Terms of Reference. The RZSAC held a public hearing in November 2014.

Events that should be recorded under “2015” in chronological order:

 Council commenced the preparation of Boroondara Housing Strategy, including a residential capacity study based on the approved residential zones.  Council undertook community consultation on the Draft Boroondara Housing Strategy in September and October 2015.  Council adopted its Boroondara Housing Strategy in December 2015.

The level of evidence and justification needed when preparing relevant planning scheme amendments

The Overarching Report identifies that Victoria’s municipalities were at very different stages of strategic readiness to implement the new zones when they were introduced in July 2013. The report also notes that different Councils adopted different methodologies to implement the new zones in their respective municipalities.

Council notes that the implementation of the new residential zones in Boroondara was supported by comprehensive strategic planning work carried out since 2011, including the preparation of the Boroondara Neighbourhood Character Study (NCS) and the NCS Precinct Statements. Extensive community consultation was carried out as part of the preparation and eventual adoption of the NCS Precinct Statements. The Precinct Statements formed the basis for the application of the new residential zones.

The NCS divides Boroondara’s residential areas into 75 neighbourhood character precincts. A NCS Precinct Statement for each precinct sets out the precinct’s current and preferred character and contains design guidelines to assist with the assessment of planning permit applications.

Council’s approach to the application of the new residential zones reflects the community’s expectations to protect Boroondara’s valued residential areas, and implement stricter controls to protect neighbourhood character in Boroondara.

The adopted BHS will provide strategic justification for future review of the zones in the City of Boroondara.

Recommended improvements to the residential zones

The Taskforce compiled a list of “suggested improvements” to the residential zones, including 74 potential changes to be considered by the MRDAC. However, no context or rationale behind the suggestions was provided. It was also unclear where exactly these suggestions came from or whether the suggestions were intended for certain locales.

Council is disappointed with the lack of analysis of the “list” by the Taskforce before it was made available for public comment. It appears that the list has been compiled hastily without any input from the Taskforce for the public to comment on. It is considered that the list is a random collection of ideas, many of which present no opportunities for meaningful discussion or a considered response.

Therefore, Council suggests that the MRDAC should not at all review the complied list which provides little benefit in understanding the issues raised. Instead, the MRDAC should refer to the “original submissions” from various stakeholders, such as Council’s submission to the Technical Review of the Residential Zones (Appendix C). Alternatively, the list of suggestions should properly identify the source, and provide a comment to its purpose or intended consequence to ensure that meaningful discussion can occur.

Nonetheless, Council provides in principal support to the following matters for the MRDAC’s consideration:

 The continued application of mandatory controls in appropriate locations.  Strengthen building design requirements for multi-level developments.  Review the need to introduce additional requirements in the Schedule to the Zones on site coverage, setbacks, open space etc.  Establish infrastructure development contribution scheme.  Include references of relevant policy documents to ensure that relevant policies are considered, e.g. structure plans.  Apply multiple schedules to address the role and character of different areas.  Amend subdivision loophole which allows for multiple lot subdivision in the NRZ.

Council further expresses opposition to the following suggestions:

 Remove mandatory height requirements.  Remove the permit trigger for lots under 500sqm.  Apply mandatory boundary of RGZ within 100m of commercial zone.  Review the need for notification for certain applications in the RGZ (exemption from notification requirements).  Remove the requirement for an urban context report and design response for residential development of five or more storeys.

Council’s comments on the “list of suggested improvements” are provided at Appendix D.

Council would oppose any wholesale changes to the residential zones should the MRDAC be of the mind to recommend changes to the purpose or the format/composition of the zones.

Appendices

Appendix A - Boroondara Housing Strategy (BHS), adopted by the Boroondara City Council on 14 December 2015

Appendix B - An excerpt of Council’s submission to the Plan Melbourne Refresh Discussion Paper as relevant to housing (endorsed by the UPSC on 14 December 2015

Appendix C - Council’s submission on the Technical Review of the Residential Zones (endorsed by the UPSC on 19 October 2015).

Appendix D - Council’s comments on the List of Suggested Improvements to the Residential Zones

Appendix A. Boroondara Housing Strategy

Adopted by the Urban Planning Special Committee on 14 December 2015

Table of Contents

1 Executive Summary ...... 1

2 Introduction ...... 9

2.1 Municipal Context ...... 9 2.2 Why do we need a Housing Strategy? ...... 9 2.3 Scope and Methodology ...... 11

3 Housing Snapshot ...... 13

3.1 Metropolitan Housing Snapshot ...... 13 3.1.1 Metropolitan housing demand ...... 13 3.1.2 Regional housing demand ...... 13 3.1.3 Key housing supply locations ...... 14 3.2 Boroondara Housing Snapshot...... 16 3.2.1 Neighbourhood character is the key driver ...... 16 3.2.2 Role of Boroondara’s activity centres, commercial corridors and neighbourhood shopping centres ...... 17 3.2.3 Existing housing capacity ...... 17 3.2.4 Where to from here? ...... 18

4 Community Values ...... 20

4.1 Our Boroondara - Our City Our Future Consultation (2007) ...... 20 4.2 Housing Preferences Survey (2011) ...... 21 4.3 Neighbourhood Character Study Consultation (2011/12) ...... 22 4.4 Plan Melbourne Consultation (2013) ...... 22 4.5 Amendment C108 - Neighbourhood Centres and Commercial Corridors Guidelines Consultation (2013) ...... 23 4.6 New Residential Zones Consultation (2014) ...... 23 4.7 Draft Boroondara Housing Strategy (2015) ...... 24

5 Housing Policy Context ...... 25

5.1 National ...... 25 5.2 State and Regional...... 25 5.3 Local ...... 28

6 Housing Profile and Analysis ...... 33

6.1 Housing and Households in Boroondara ...... 33 6.1.1 Population ...... 33

6.1.2 Age profile ...... 33 6.1.3 Migration flows ...... 35 6.1.4 Household type ...... 37 6.1.5 Dwelling type and density ...... 37 6.1.6 Housing preference ...... 41 6.1.7 Household income and housing costs...... 41 6.1.8 Other housing ...... 43 6.1.9 Conclusions ...... 43 6.2 Housing Demand ...... 44 6.2.1 Population forecast ...... 44 6.2.2 Housing forecast ...... 46 6.2.3 Housing distribution forecast ...... 47 6.2.4 Conclusion ...... 47 6.3 Housing Capacity ...... 49 6.3.1 Methodology and assumptions ...... 49 6.3.2 Available residential land ...... 50 6.3.3 Potential yield - residential land ...... 51 6.3.4 Additional land ...... 55 6.3.5 Alignment of housing demand and capacity ...... 55

7 Issues and Opportunities ...... 57

7.1 Protection of Neighbourhood Character ...... 57 7.2 Identification and Protection of Heritage Places ...... 58 7.3 Continue to Encourage Housing in Commercial Areas ...... 58 7.4 Providing Housing that Meets the Needs of All Residents ...... 59 7.5 Providing the Right Housing in the Right Locations ...... 59 7.6 Improving the Quality of Housing in Boroondara ...... 61 7.7 Improving the Environmental Performance of Housing ...... 63 7.8 Housing Affordability...... 64

8 Housing Objectives and Strategies ...... 65

8.1 Protect the Character of Boroondara’s Residential Areas ...... 65 8.2 Provide Housing that Meets the Needs of All Residents ...... 67 8.3 Encourage Housing Diversity in Appropriate Locations ...... 68 8.4 Improve the Design Standards of New Housing ...... 72 8.5 Improve the Environmental Sustainability of New Residential Development74

9 References...... 75

Boroondara Housing Strategy (December 2015)

1 Executive Summary

The Boroondara Housing Strategy (BHS) is a high level strategic planning document that identifies key housing issues in Boroondara and provides objectives and strategies to address these issues.

The BHS does not intend to identify or recommend specific changes to the residential zones. The Strategy does however provide guiding principles to support future reviews of the zones if required.

The BHS also foreshadows the need for further strategic work to support these future reviews, including to evaluate the effectiveness of the residential zones and assess if they are delivering the preferred housing outcomes; as well as to investigate if modifications to the current mix of zones are needed to meet future housing needs.

The preparation of the BHS is consistent with the requirement of Ministerial Direction No.16 - Residential Zones (MD16) to support any future review of the approved residential zones in the City of Boroondara.

The BHS reviews planning policies relevant to housing provisions at the national, state and local levels. It provides an overview of the housing profile of Boroondara (based on the 2011 Census) with regards to the municipality’s demographics, existing household and dwelling types, and dwelling densities. It also discusses housing demand in the municipality to 2031 based on .id Consulting’s population and dwelling forecast, which is compared with dwelling capacity based on an analysis by SGS Economics and Planning Pty Ltd.

Importantly, based on the Australian Bureau of Statistics’ Estimated Residential Population for the City of Boroondara in 2011, it is estimated that approximately an additional 30,235 residents will live in the City of Boroondara by 2031. This equates to approximately 14,352 additional households and 15,567 additional dwellings. In comparison, there is capacity1 for an additional 62,546 dwellings in the municipality, including 38,291 additional dwellings in the residential areas and 24,255 additional dwellings within the commercial areas (activity centres, commercial corridors, neighbourhood and local centres). This capacity is more than sufficient to accommodate the forecast housing demand.

1 Net dwelling capacity (“full build out” assumption) based on the current mix of residential and commercial zones in Boroondara.

1 Boroondara Housing Strategy (December 2015)

The BHS places a strong emphasis on preserving neighbourhood character and the continued identification of heritage places. However, it also recognises the importance to provide for a diverse range of housing options, where appropriate, to cater for the different housing needs of the community.

The BHS recognises that the need for housing diversity should also be considered in conjunction with the capacity and functions of key infrastructure, such as roads, sewerage, drainage, public services and public transport. If these services cannot sustain additional population in particular locations, it would be unsustainable to increase densities in these locations until the necessary infrastructure can support the change. Council will continue to plan for and manage local infrastructure and advocate to the Victorian Government in the provision and upgrading of key infrastructure in the municipality, such as public transport facilities, arterial roads and Melbourne Water managed drainage and sewage systems.

Key housing issues identified in the BHS and the corresponding objectives/strategies are summarised below:

Continued protection of Boroondara’s highly valued neighbourhood character and heritage places

The Boroondara community highly values the unique physical characteristics of the municipality. One of the key objectives of the BHS is to ensure new development continues to respect and enhance the key character of an area, as well as to ensure the continued protection of heritage places. This is supported by strategies identified in the BHS including applying mandatory height controls where appropriate and continued assessment of potential heritage places in the municipality.

Objective 1.1 - Ensure new development retains and enhances the key character attributes that contribute to a precinct’s preferred character.

Strategies

2 Boroondara Housing Strategy (December 2015)

• Consider if a change of preferred character is warranted (in local residential streets proximate to medium to large commercial areas2 and public transport) to deliver housing diversity outcomes. • Direct and encourage new housing to locate in Boroondara’s commercial areas, neighbourhood shopping centres and along key main roads.

Objective 1.2 - Ensure continued identification and protection of places of heritage significance and ongoing assessment of possible heritage places.

Strategies

• Continue to investigate and assess possible heritage places in the City of Boroondara in accordance with the adopted Heritage Action Plan (HAP, 2012) or any updated version of the HAP.

Provision of a diverse range of housing options in appropriate locations

Population forecasts indicate continued prominence of traditional family households, an aging population, and an increased “young workforce”. Each of these demographic trends has different implications on the housing market including the need for large housing catering for families, smaller dwellings for young families, couple households and residents wanting to age in place.

Therefore, the BHS provides strategies to ensure the provision of a diverse range of housing that meets the distinctive needs of different demographic groups in appropriate locations.

The BHS encourages multi-dwelling development to be located within Boroondara’s commercial areas. Dwelling projections suggest that suburbs such as Hawthorn East, Hawthorn, Camberwell and Kew will accommodate the largest number of additional dwellings. This is likely due to the larger commercial centres being able to absorb a large number of higher density residential developments in the future, such as Camberwell Junction, Kew Junction and the Glenferrie Activity Centre.

2 Medium to large commercial areas are defined as Activity Centres (Camberwell Junction, Kew Junction and Glenferrie), Commercial Corridors, and Neighbourhood Shopping Centres that typically offer a wide range of services and already contain a mix of retail, commercial (other than retail) and residential uses; and are typically supported by tram routes and/or close to a train station. These centres are considered more capable of accommodating new services to support greater housing diversity in the surrounding area. Neighbourhood shopping centres that typically have a local convenience function and offer a limited range of services are not considered viable nodes to support greater housing diversity. Further investigation areas will be subject to Council’s endorsement.

3 Boroondara Housing Strategy (December 2015)

The BHS also foreshadows that some residential areas may need to be further investigated for greater housing diversity. The further investigation will be guided by a number of guiding principles in the BHS, including whether there are any existing development constraints (e.g. single dwelling covenant), the existing housing mix in the area and height limits applied to the surrounding properties.

These further investigations may be required in the event that the Victorian Government requests local Councils to investigate actions (including a direction to review the residential zones) to achieve the objectives identified in the metropolitan planning strategy Plan Melbourne. This includes a direction to create a city of 20-minute neighbourhoods and a short term action to update the State Planning Policy Framework to reflect this direction. The Victorian Government considers that creating a city of 20-minute neighbourhoods would facilitate a diversity of housing choices and support the vibrancy of the local shopping centres. Ultimately, it may be that no further investigation will be required. However, should there be a need for housing diversity, the further investigation areas will be determined at the discretion of Council.

Objective 2.1

Ensure the provision of a diverse range of housing.

Strategies

• Ensure a high percentage of residential areas in Boroondara continue to provide detached houses suitable for new and older families with children. • Support Boroondara’s ageing population by ensuring each suburb in Boroondara provides opportunities for housing that meet the needs of older residents. • Encourage the provision of non-private residential accommodation, such as aged care and student housing in areas close to services and amenities. • Ensure higher density residential developments to include a mix of dwelling sizes and configurations/layouts to accommodate people of different ages, family structures, mobility levels and socio-economic groups. • Encourage a mixture of housing above ground level within Boroondara’s commercial areas. • Advocate to the Australian and Victorian Government to provide social housing for low-income residents in Boroondara.

4 Boroondara Housing Strategy (December 2015)

Objective 3.1

Ensure new multi-dwelling developments in the Neighbourhood and General Residential Zones reinforce a precinct’s preferred character.

Strategies

• Require new residential developments in the Neighbourhood and General Residential Zones to be assessed against the preferred character statement and design guidelines in the relevant Neighbourhood Character Precinct Statements. • Protect the detached, low-density character of areas within the Neighbourhood Residential Zone. • Support one to two storey detached dwellings, dual occupancies and multi- unit villa/ townhouse style developments within the General Residential Zone - Schedule 1. • Support a mixture of housing types up to three storeys in the General Residential Zone - Schedule 2 and 3. • Encourage other housing types such as aged care in residential zones, in particular, properties zoned General Residential Zone - Schedule 4. • Support a mixture of housing types up to four storeys in the Residential Growth Zone.

Objective 3.2

Support greater housing diversity in areas with better access to services and public transport.

Strategies

• Support housing diversity along main roads (excluding areas subject to Heritage Overlays and other restrictions) that are proximate to medium to large commercial areas and fixed public transport. • Consider greater housing diversity in local residential streets (excluding areas subject to Heritage Overlays and other restrictions) that are proximate to medium to large commercial areas and fixed public transport. • In areas where greater housing diversity is supported, the following should be considered when deciding what alternative zone could be applied: o The size and function of the closest commercial area. o The height limit that applies to the closest commercial area. o The scale and use of surrounding properties. o The residential zone applied to all or part of the road. o Housing diversity in that part of the municipality.

5 Boroondara Housing Strategy (December 2015)

• Facilitate housing diversity in all suburbs and consider whether an alternative zone could be applied to areas with relatively lower housing diversity (when compared with other Boroondara suburbs). • Continue to advocate to the Victorian Government in the provision and upgrading of key infrastructure in the municipality such as public transport facilities, arterial roads and Melbourne Water managed drainage and sewage systems.

Objective 3.3

Ensure Boroondara’s commercial areas continue to provide for a dynamic mix of retail, commercial (other than retail) and residential uses.

Strategies

• Encourage a diverse range of housing in Boroondara’s commercial areas, including housing for a range of household types.

Objective 3.4

Encourage the use of under-utilised government landholdings for housing (excluding land identified in the Boroondara Open Space Strategy as open space).

Strategies

• Advocate to the Victorian Government to develop under-utilised Victorian Government land holding (e.g unused Victrack landholdings) for affordable and/or social housing where appropriate (excluding land identified in the Boroondara Open Space Strategy as open space).

Encourage high quality housing design and sustainable development

The BHS encourages apartment design that contributes positively to the urban environment, displays high quality architecture and ensures high standards of internal amenity.

Specifically, the BHS identifies the lack of measurable standards in the Victorian planning system for designing apartments as an ongoing issue, resulting in poor development outcomes. It supports the development of state-wide design standards that would improve the quality of apartment development and encourages a high standard of internal and external amenity for residents of new apartments in Boroondara.

The BHS also provides strategies to encourage new housing development to achieve higher standards of environmentally sustainable design and advocates

6 Boroondara Housing Strategy (December 2015)

that the Victorian Government introduce state-wide policy relating to Environmentally Sustainable Design.

Objective 4.1

Encourage high quality residential design.

Strategies

• Advocate for the preparation of Victorian Government design guidelines for mixed use and residential apartment buildings. • Promote and encourage improved standards of apartment design ensuring higher levels of internal and external amenity for future occupants. • Promote and encourage residential designs that respect the existing or preferred neighborhood character. • Encourage apartment building designs that optimise access to natural light and cross ventilation and reduce reliance on mechanical systems by: o limiting the number of single aspect dwellings with a southerly aspect; o limiting the number of habitable rooms that rely on borrowed light; and o ensuring appropriately sized light wells and balconies. • Advocate for minimum apartment sizes in new apartment developments to ensure apartments are functional and can meet the needs of current and future residents. • Encourage development to incorporate building separation that ensures: o adequate daylight access to habitable rooms within the site and on adjoining sites. o acceptable outlook from habitable rooms. o redevelopment opportunities of adjoining sites is not compromised. • Encourage and support development that is innovative in design with regards to accessibility, mobility and adaptability for the aging population in Boroondara. • Ensure housing for students enjoys comparable level of amenity as other apartments. • Ensure appropriate development that is complementary to the existing neighbourhood character and has regard to adjoining residential amenity. • Achieve innovative, high-quality architectural design that makes efficient use of land whilst enhancing the appearance and strengthening the identity of the commercial centres and corridors.

7 Boroondara Housing Strategy (December 2015)

Objective 5.1

Advocate for new residential developments to incorporate environmentally sustainable practices into their design.

Strategies

• Advocate for guidance to be provided by the Victorian Government in respect to Environmentally Sustainable Design (ESD), preferably through the Building Regulations or alternatively through the Victorian Planning Provisions. • Encourage new housing developments to incorporate design features, utility systems and materials that are energy efficient. • Encourage water sensitive urban design and water efficiency measures to be incorporated into new residential and mixed use development. • Encourage the use of innovative ways to achieve environmentally sustainable outcomes in building design. • Support medium and higher density housing to be located close to public transport.

Further strategic work

The BHS has identified a range of further strategic work to address the issues identified and to support future reviews of the new residential zones if required. These projects will be prioritised and carried out based on the indicative timeframes provided in the BHS.

8 Boroondara Housing Strategy (December 2015)

2 Introduction

2.1 Municipal Context

Boroondara forms part of the inner eastern region around the Melbourne central business district (CBD). The City is bordered by the cities of Banyule, Manningham, Whitehorse, Monash, Stonnington and Yarra.

Boroondara enjoys a high degree of accessibility to the surrounding region, particularly in an east/west direction. The municipality is well serviced by public transport and main arterial roads and freeways that pass either through the City or along its borders.

Boroondara has an extensive network of commercial centres comprising three activity centres (Camberwell Junction, Kew Junction and Glenferrie), 31 neighbourhood centres and four commercial corridors. There are also fifteen local centres throughout the municipality.

Boroondara is a custodian of a portion of the Yarra River and its environs, one of the most important riverine environments in the State. Further, the Yarra River environs contain most of Boroondara’s regional open space and provide a significant landscape feature within the municipality.

Boroondara is an attractive and highly sought after residential environment with a mix of housing types. Set in a green, treed environment, it is known for extremely high levels of amenity. Residential development is the dominant land- use within the City with some of the finest residential streets in Melbourne.

The character of Boroondara is one of the key features that makes Boroondara special, being derived from both the natural setting in which it is located and the manner in which the City has developed over time. The inter-war and post-war subdivision patterns are very distinctive. The City is a prime example of the “Garden Suburb” form of development, leading in the development of nature strips and private gardens. These are distinctive features of the City.

2.2 Why do we need a Housing Strategy?

The City of Boroondara is renowned for its tree lined streets, parks and gardens, suburban character, heritage buildings and the distinctiveness of the neighbourhood and activity centres. These unique characteristics of the municipality are highly valued by the Boroondara community and contribute to Boroondara being a highly sought after area for residential properties.

Based on .id Consulting’s population forecasts, there’ll be approximately 30,235 additional residents and 15,567 additional dwellings in the City of Boroondara by

9 Boroondara Housing Strategy (December 2015)

2031. It is important to develop a Housing Strategy to provide policy guidance for future housing development in the City of Boroondara.

New residential zones were implemented throughout Boroondara on 19 June 2014 as part of the Minister for Planning’s approval of Amendment C190 to the Boroondara Planning Scheme. The new zones, consisting of the Residential Growth Zone (RGZ), General Residential Zone (GRZ) and Neighbourhood Residential Zone (NRZ) provide clear direction to property owners, developers and the community of the types of residential development that would be supported in certain locations.

In October 2014, a number of properties along main roads were rezoned by the Minister for Planning from the Neighbourhood Residential Zone 3 (NRZ3) to the General Residential Zone 5 (GRZ5). This was based on recommendations of the Residential Zones Standing Advisory Committee (RZSAC) appointed by the Minister, that these areas remain in the GRZ until further strategic work is completed (such as a housing strategy) to determine the most appropriate zone for these areas.

Community feedback on the new residential zones included a number of precinct-wide rezoning requests which required further strategic investigation. Council resolved on 11 December 2014 to defer consideration of broader precinct-wide rezoning requests from the community consultation on the new residential zones in 2014 until a housing strategy has been finalised.

In addition, the Minister for Planning introduced Ministerial Direction No.16 - Residential Zones (MD16) on 1 July 2014, which requires councils in metropolitan Melbourne to use a housing strategy to inform the application of the new residential zones, as well as to evaluate and monitor the implications of the new residential zones within two years of their gazettal into a planning scheme. Any future reviews of the residential zones in Boroondara will also need to be supported by a housing strategy.

The BHS has been prepared to provide strategic justification for future reviews of the residential zones and to verify the ability of the current zones in meeting housing demand in the municipality to 2031. An emphasis of this analysis still remains the importance of ensuring the preservation of the City’s unique and valued neighbourhood character.

The BHS seeks to ensure the provision of a diverse range of housing options for the Boroondara community and future residents, as well as to ensure that future housing development respects and enhances the key character attributes that contribute to an area’s preferred character.

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2.3 Scope and Methodology

The preparation of the BHS has taken into account planning policies relevant to housing provisions at the national, state and local levels. Recently introduced planning controls (e.g. mandatory height controls in residential and commercial areas) and housing related strategies in Council adopted structure plans, as well as community feedback on these strategic projects have also informed the Housing Strategy, including:

• Activity Centre Structure Plans including Camberwell Junction Structure Plan (adopted 2008, updated 2011), Kew Junction Structure Plan (adopted 2009, updated 2011) and Glenferrie Structure Plan (adopted 2010, updated 2011). • Introduction of the new residential zones (Amendment C190 to the Boroondara Planning Scheme) - approved in June 2014. • Neighbourhood Character Study (adopted in September 2012, updated September 2013) including the Neighbourhood Character Precinct Statements. • Neighbourhood Centres and Commercial Corridors Guidelines 2014 as part of Amendment C108 to the Boroondara Planning Scheme which introduced mandatory height controls in the commercial centres - approved in April 2015.

A review of the housing profile of Boroondara (based on 2011 Census data) was carried out to understand the municipality’s demographics, existing household types, as well as dwelling types and density. Population and housing forecast (including housing types and distribution) was also reviewed to understand the potential housing demand by 2031. Further details are provided in Chapter 6.

In May 2015, Council engaged SGS Economics and Planning Pty Ltd (SGS) to prepare a housing capacity analysis specifically to inform the preparation of this Housing Strategy. The capacity analysis was based on the approved residential zones as of 9 October 2014 including the mandatory height controls introduced through Amendment C190. Further details and findings are provided in Chapter 6.3.

The development of the BHS is indicated in Figure 2.1.

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Figure 2.1: Boroondara Housing Strategy (BHS) Process

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3 Housing Snapshot

3.1 Metropolitan Housing Snapshot

3.1.1 Metropolitan housing demand

Plan Melbourne estimates that an additional 1,570,000 dwellings will be required in metropolitan Melbourne to 2051. It further notes that the additional dwellings will be split between established areas (+960,000) and growth areas (+610,000). Within established areas, it is expected that 310,000 additional dwellings will be required in the central city and surrounds, with 650,000 additional dwellings required in the balance of established suburbs. This suggests that there will be increasing demand for a diversity of housing types within Melbourne’s established areas.

The metropolitan housing requirement is expected to be split between an additional 530,000 detached dwellings and 1,040,000 ‘other dwellings’. On current and future trends, ‘other dwellings’ will be split between an additional 480,000 apartments and an additional 560,000 townhouses and units3.

3.1.2 Regional housing demand

Plan Melbourne breaks Melbourne into five regions with each region comprising a number of local government areas (LGAs). Importantly, the regional and local government projections are taken to 2031 whilst the metropolitan Melbourne housing projection is taken to 2051. This does not allow for a simple comparison with the 2051 Plan Melbourne dwelling requirement above.

The dwelling projections have been assembled for each region using the official Victorian Government projection of population and households Victoria in Future 2015 (VIF 2015) LGA data. It is expected that dwelling demand will increase by 1.9% per annum (p.a.) in Melbourne to 2031, from 1,566,284 dwellings in 2011 to 2,291,582 dwellings in 2031. This represents an increase of approximately 725,300 additional dwellings to 2031. The western region is expected to grow the fastest, with a percentage increase in dwelling demand of 2.6% p.a. to 2031.

3 Figure 8, Plan Melbourne 2014 (p62)

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Table 3.1: Regional Housing Demand, by region, Melbourne 2011 - 2031 % % share Region 2011 2021 2031 Change change by region (p.a.) Central 211,209 284,591 342,744 131,535 18.1% +2.5% Eastern 385,293 434,351 476,577 91,284 12.6% +1.1% Northern 300,169 377,789 456,700 156,531 21.6% +2.1% Southern 429,533 525,066 617,492 187,959 25.9% +1.8% Western 240,079 314,165 398,068 157,989 21.8% +2.6% Total 1,566,284 1,935,962 2,291,582 725,298 100% +1.9% Source: Victoria in Future 2015

Boroondara sits within the eastern region which is expected to generate demand for 91,284 additional dwellings to 2031, an increase of 1.1% p.a. to 2031. This represents a 12.6% share of overall dwelling demand for all regions to 2031, the lowest of all regions. This reflects a lack of new greenfield land availability, and a consequential reliance on infill housing to support dwelling increases.

Within the eastern region, VIF2015 projects a demand for 15,688 additional dwellings in Boroondara between 2011 and 2031, a growth rate of +1.1% p.a. This is the same as the projected demand for the eastern region as a whole and less than wider Melbourne (+1.9% p.a.).

Boroondara is expected to accommodate 17.2% of eastern region dwelling demand to 2031.

3.1.3 Key housing supply locations

Plan Melbourne states that new dwelling supply will come in a variety of forms and locations. Key housing supply locations include strategic sites and precincts, nominated centres in Plan Melbourne, the outer metropolitan growth corridors and within the established suburbs. It is noted that other key supply locations may exist in addition to those nominated below.

Table 3.2 provides a summary of key sites and precincts which have been foreshadowed as providing for significant new dwelling supply. Over 552,100 new dwellings are expected to be provided in these areas, accounting for substantial dwelling need.

Assuming all of these sites reached their development potential by 2051, this would leave the established areas of Melbourne to accommodate demand for an additional 1,017,900 additional dwellings as estimated by Plan Melbourne.

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Table 3.2: Dwelling yields - Strategic sites, centres and precincts (rounded) Forecast Additional dwelling yield Information source year Strategic sites and precincts No fixed City of Melbourne: Future Living Arden-Macaulay 9,500 year Discussion Paper; p. 13 No fixed City of Melbourne: Future Living City North 5,000 year Discussion Paper; p. 13 No fixed City of Melbourne: Future Living E-gate 6,000 year Discussion Paper; p. 13 No fixed 40+ year plan; FBURA Strategic Framework Fishermans Bend 40,000 year Plan No fixed City of Melbourne: Future Living Melbourne CBD 10,500 year Discussion Paper; p. 13 Melbourne No fixed City of Melbourne: Future Living 5,500 Docklands year Discussion Paper; p. 13 No fixed City of Melbourne: Future Living Southbank 42,000 year Discussion Paper; p. 13 Sub-total 118,500 Nominated centres in Plan Melbourne Box Hill Transit City Structure Plan; June Box Hill 2,050 Unknown 2007. Range 1,400-2,700 new dwellings Broadmeadows Structure Plan; June 2012. Broadmeadows 6,500 2031 Covers whole Broadmeadows Activities Area. Dandenong Urban Master Plan Summary. Dandenong 4,000 2026 Forecast over ‘next 15-20 years.’ Epping Transit City Structure Plan. Range Epping 3,250 2030 2,000-4,500 new dwellings Footscray 7,000 2031 Footscray Structure Plan; March 2014 Fountain Fountain Gate – Narre Warren CBD Gate/Narre 1,000 2033 Development Contributions Plan Warren Frankston Metropolitan Activity Centre Frankston 1,150 2031 Structure Plan. Range 700-1,600 new dwellings Ringwood 5,800 2031 ringwoodgoingplaces.com.au Sunshine 2,850 2021 Sunshine Town Centre Structure Plan Sub-total 33,600 Growth Corridors No fixed Metropolitan Planning Authority. Defined Growth Corridors4 400,000 year as demand in PSP areas. Total 552,100

4 Growth Corridors include the Metropolitan Activity Centres of Toolern and Lockerbie

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3.2 Boroondara Housing Snapshot

3.2.1 Neighbourhood character is the key driver

In 2012, the Victorian Government introduced new residential zones. The City of Boroondara used the adopted Neighbourhood Character Study 2013 (NCS) as the strategic basis for the application of the new zones.

The NCS divides Boroondara’s residential areas into 75 neighbourhood character precincts. A Neighbourhood Character Precinct Statement (NCPS) for each precinct sets out the precinct’s current and preferred character and contains design guidelines to assist with the assessment of planning permit applications.

Table 3.3 summarises the current distribution of the residential zones in Boroondara as of December 2015 and the housing types encouraged in each zone.

Table 3.3: Current residential zones in Boroondara Zone Percentage of Housing type encouraged residential land One to two storey, detached dwellings and dual NRZ3 80% occupancy developments. One to two storey, detached dwellings, dual occupancy GRZ1 11% and multi-unit villa/townhouse developments. One to three storey developments comprising a mix of GRZ2/35 6% detached dwellings, dual occupancy, multi-unit villa/townhouse and apartment buildings. Multi-unit villa/townhouse development, apartment GRZ46 1% buildings and other housing. Area subject to review. Potentially allows for multi-unit GRZ5 2% villa/townhouse development, apartment buildings and other housing. One to four storey developments comprising a mix of RGZ1 1% detached dwellings, dual occupancy, multi-unit villa/townhouse and apartment buildings.

5 GRZ2 and 3 have the same planning controls and allow for the same development outcomes.

6 Excludes GRZ4 land in commercial centres.

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3.2.2 Role of Boroondara’s activity centres, commercial corridors and neighbourhood shopping centres

In addition to the residential areas in Boroondara, Council anticipates a large number of additional dwelling be located within existing commercial areas such as Camberwell Junction, Kew Junction, Glenferrie as well as some of the neighbourhood shopping centres and commercial corridors.

New housing in these areas is likely to be in the form of apartment developments that benefit from being well located to services and public transport. Housing in these locations is integral to the viability of Boroondara’s commercial areas and providing a diverse range of housing in Boroondara.

3.2.3 Existing housing capacity

Based on housing forecast by .id Consulting in 2015, the City of Boroondara will need to provide an additional 15,567 new dwellings by 2031. Population and housing forecasts are discussed in more detail in section 6.2.

In comparison, the capacity analysis prepared by SGS Economics and Planning demonstrates that there is capacity for an additional 62,546 dwellings in the municipality. This includes 40,660 additional dwellings in the residential zones and 21,886 additional dwellings within the commercial and mixed use zones. This capacity is more than sufficient to accommodate the forecasted housing demand.

Table 3.4 summarises housing capacity available in the current zones. Further details of housing capacity by suburb and zone are provided in section 6.3.

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Table 3.4: Housing capacity in the current zones in Boroondara Additional dwelling Percentage of total Zone capacity capacity NRZ3 17,857 28.6% GRZ1 8,064 12.9% GRZ2/37 7,284 11.6% GRZ4 (Supersized lots) 811 1.3% GRZ5 2,569 4.1% RGZ1 1,706 2.7% Subtotal residential areas 38,291 61.2% C1Z 21,710 34.7% GRZ4 (Residential land in 2,369 3.8% commercial centres) MUZ 176 0.3% Subtotal commercial areas 24,255 38.8% Total 62,546 100%

3.2.4 Where to from here?

The current mix of residential and commercial zones and built form controls provide a solid basis from which to build Boroondara’s housing future. No change is needed to the existing mix of zones to allow the City of Boroondara to meet forecasted housing need to 2031. A snapshot of the current residential and commercial areas as of December 2015 is shown in Figure 3.1.

However, the new residential zones (approved by Amendment C190 and C199 to the Boroondara Planning Scheme) were only introduced in 2014. A large number of planning applications were lodged with Council prior to the approval of the new residential zones on 19 June 2014. These development proposals are exempt from the opportunities and constraints of the new zones, including mandatory building height limits. Further, the built form controls that apply to neighbourhood commercial areas and commercial corridors (Amendment C108) were also introduced in 2014. Therefore, Council is yet to evaluate how past development trends will change in response to these controls.

Continued monitoring and review of the operation of the new controls and the housing outcomes over the next few years will allow Council to better understand the function of the new residential zones and built form controls in the commercial areas. This will then inform further refinement of the existing planning controls in order to better cater for changes in community needs, and address emerging issues that arise.

7 GRZ2 and 3 have the same planning controls and allow for the same development outcomes. Therefore, the two zones were combined for the purpose of capacity analysis.

18 Boroondara Housing Strategy (December 2015)

Figure 3.1: A snapshot of residential and commercial areas in Boroondara The snapshot is an indicative map of the existing mix of zones as of December 2015 based on the Boroondara Planning Scheme.

19 Boroondara Housing Strategy (December 2015)

4 Community Values

The City of Boroondara has undertaken extensive community engagement activities on a number of important issues relevant to housing over the past decade. These include:

• Our Boroondara Our City Our Future 2007 • Housing Preferences Survey 2011 • Neighbourhood Character Study and associated Neighbourhood Character Precinct Statements in 2011/12 • Plan Melbourne in 2013 • Amendment C108 - Neighbourhood Centres and Commercial Corridors Guidelines 2013 • New residential zones 2014.

Through these consultation activities, Council has been able to identify core community values that epitomise resident’s views on housing in Boroondara, including a desire to:

• allow appropriate levels of change that are not at the detriment of the character of our residential areas • protect the unique character of Boroondara’s residential areas and heritage properties through appropriate dwelling design and strict design controls • protect the suburban lifestyle Boroondara offers • improve the quality of new residential development in Boroondara, including better environmental standards and apartment design • maintain our current standard of services and amenities whilst balancing growing demand for more intense development.

4.1 Our Boroondara - Our City Our Future Consultation (2007)

Extensive community consultation was carried out in 2007 to inform the preparation of the long-term vision for Boroondara. With regards to housing, the community indicated that:

• Boroondara’s neighbourhood character and heritage buildings are valued and should be enhanced; • There needs to be a balance between heritage and future needs; • Development needs to be in keeping with Boroondara’s character; and • There needs to be initiatives and incentives to support the development of sustainable housing and buildings.

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4.2 Housing Preferences Survey (2011)

The Housing Preference Survey (2011) was a self-assessment survey that was sent to 1400 households in the City of Boroondara. The residents were from various suburbs and age groups. The survey asked a series of questions relating to housing costs, dwelling characteristics, use of indoor and outdoor spaces, future housing aspirations, reasons why they live where they do, and environmental sustainability.

The key insights from this survey include:

• Dwelling type was the most important aspect when residents were choosing their residence. Other aspects considered were affordability, safety/security, privacy and quality of dwelling construction. • Two-thirds of residents considered that they had moderate to heavy housing related financial stress. • Most of the residents live in dwellings with three or more bedrooms and two or more communal living spaces. Around three-quarters of the residents indicated that they had at least one spare bedroom. • Residents in Boroondara were engaged in some environmentally friendly initiatives such as using energy efficient lighting and appliances in their homes. However, cost was commonly cited as a barrier to engage in other initiatives such as solar panels for electricity and hot water. • Housing in the right price range was the most important reason why residents chose their local neighbourhood, followed by proximity and access to public transport, being in a safe neighbourhood, and proximity to shops and services. • Views on whether their neighbourhood had changed for the better or worse in the last 10 years were mixed. Some residents believed that new development and renewal in the area had changed the neighbourhood for the better. Others thought it was having a detrimental impact on the area’s character. Residents who thought the area had changed for the worse where typically middle aged to older residents. • Single-parents with adult children, young singles, young couples and older couple households were more likely to have moved into Boroondara from a surrounding municipality. • Two-parent families with children were more likely to have reported that their previous dwelling was within the City of Boroondara. • The most common reason for leaving their previous dwelling was wanting to upgrade or upsize, followed by purchasing a home and needing more space. • Young couples and older households were most likely to change their current residence in the next five years. These residents stated that they wanted to move to a detached house (upsizing) or would potentially be moving into a flat, unit or apartment (downsizing).

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4.3 Neighbourhood Character Study Consultation (2011/12)

Consultation as part of the preparation of the NCS highlighted the community’s desire to retain and protect the character of Boroondara’s residential areas and ensure infill development is appropriately sited and designed so that it does not detract from existing streetscapes. The key elements identified as being critical to the protection of neighbourhood character included:

• Retaining street trees and green nature strips. • Encouraging a diversity of architectural styles in place of homogenous streetscapes, provided new dwellings are well designed and respect the scale and character of surrounding buildings. • Protecting heritage buildings. • Supporting one and two storey dwellings in established residential areas. • Supporting buildings of three or more storeys in residential areas where larger setbacks can be provided to provide opportunity for landscaping and reduce off-site amenity impacts. • Providing ample space for landscaping in front and rear gardens. • Providing clearer directions on where greater density is supported.

Other issues that were raised through this process included:

• Lack of diversity in housing to meet the needs of different household types. • Loss of native vegetation. • General concerns over traffic congestion and lack of parking in local streets.

4.4 Plan Melbourne Consultation (2013)

To inform Council’s submissions to Plan Melbourne in response to the Victorian Government’s consultation process, officers prepared a survey for the Boroondara Community Voice to gauge residents’ views on core planning issues that affect residents in Boroondara. 183 residents responded to the survey. The themes tested in the survey were:

• Housing densification • Heritage protection • Development in activity centres • Traffic congestion • Parking • Economic development • Green space • Neighbourhood character • Development in residential areas • Housing diversification • Housing affordability.

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The survey showed that residents’ views on these issues were varied. There was an acceptance that Boroondara is an attractive place to live and as such will always experience high development pressure. Most accepted that change was inevitable, but wanted greater controls put in place to guide what change is permitted to occur and where. The protection of heritage and neighbourhood character was strongly advocated. However, residents indicated a willingness to accept that change does need to occur and should be balanced with other competing issues, such as housing diversity.

4.5 Amendment C108 - Neighbourhood Centres and Commercial Corridors Guidelines Consultation (2013)

Amendment C108 to the Boroondara Planning Scheme implemented the Neighbourhood Centres and Commercial Corridors Guidelines and introduced mandatory built form controls to Boroondara’s 31 neighbourhood centres and three commercial corridors.

Consultation on the amendment was carried out from March to May 2013. Consultation feedback indicates that the Boroondara community generally supports mandatory planning controls including mandatory building heights in the commercial areas to protect the existing streetscape character.

There were also general concerns with potential traffic congestion and lack of parking, as well as the need to ensure upgrades to physical and community infrastructure to accommodate the additional retail, commercial and residential population.

4.6 New Residential Zones Consultation (2014)

Consultation on the new residential zones included a letter sent to every residential property owner and occupier in the municipality. Council received submissions from 1.5% of Boroondara’s residents. The responses received highlighted a broad range of views and opinions with some residents expressing support for the new zone and others opposing them.

The feedback identified pockets of opposition confined to a small number of precincts. In those instances, residents argued against the application of the General Residential Zone and seeking stronger protection through the Neighbourhood Residential Zones. However, the overwhelming majority of residents were happy with the new residential zones.

Council identified areas for further investigation for potential rezoning in response to submissions, subject to the completion of a housing strategy.

Many residents expressed concern that Council’s application of the new residential zones would lead to higher levels of development in areas included in one of the General Residential Zones due to the high percentage of the

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municipality that has been included in the NRZ. Council will need to monitor planning approvals in the new residential zones over the next 3+ years to understand changes to development trends.

4.7 Draft Boroondara Housing Strategy (2015)

Public consultation on the draft BHS was carried out over five weeks from 7 September to 12 October 2015, involving a municipal-wide mail out and two notices in the Progress Leader. A total of 268 submissions were received from across the municipality.

Overall, objectives and strategies in relation to “neighbourhood character, heritage protection and dwelling design” were most commented on (approximately 42% of the total number of submissions received). The majority of submitters supported the continued protection of neighbourhood character and heritage places. However, some submitters were concerned that such controls could restrict innovative design and restrict what property owners could do with their properties as their needs change. The majority of submitters also supported the strategies to encourage higher quality residential design. It is evident that many submitters were frustrated by the lack of design standards for residential dwellings and have high expectations on Council to address this issue.

Approximately 38% of the submissions include comments on dwelling density, diversity, locations and associated issues such as infrastructure capacity. The opinions on providing a diverse range of housing, including higher density housing in and around commercial centres and along main roads were divided. The main concerns were in relation to the potential destruction of the existing neighbourhood character and amenity; and the capacity of infrastructure and services to accommodate the increased demand, such as parking, traffic, public transport, roads, drains, school capacity, Council services, open space, utility supply, etc. A number of submissions suggested that housing diversity should be available in all suburbs, not just within commercial areas and along main roads.

Approximately 25% of the submissions include requests to rezone certain areas or properties. Some submissions however requested no further changes to the current zones.

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5 Housing Policy Context

5.1 National

There is no coordinated planning or policy directions regarding housing provision at the national level. Until recently, Australian housing policy was largely left to lower levels of government resulting in reduced coordination, accountability and certainty8. The Commonwealth Government’s main contribution to housing in Australia has been financial assistance and programs. At the federal level, housing is addressed through the following programs:

• National Affordable Housing Agreement (NAHA), 2009: Established by the Council of Australian Government (COAG), the NAHA presented a first step in a national approach to address and resolve housing affordability issues. The NAHA took a whole-of-housing-system approach that integrated homelessness services and created a growth fund for social housing. • Our Cities, Our Future, 2011: This first national urban policy sets the policy framework to guide the development of Australian cities. Key goals include improved efficiency of urban infrastructure, labour and capital productivity, air quality, reduced motor vehicle dependency, sustainable resource management, climate change resilience, affordability and community wellbeing. • Monetary and taxation programs: These various programs provide demand incentives and impact on affordability, including the First Home Owners Scheme and the National Rental Affordability Scheme (NRAS).

5.2 State and Regional

The Victorian Government’s housing initiatives include a number of funding agreements with the Commonwealth aimed at increasing affordable, community and public housing stock.

In addition, the Victorian Government also undertakes strategy and policy development to provide direction on housing related issues to local government across Victoria. The majority of these policies have subsequently been included in the State Planning Policy Framework (SPPF).

Victorian Government policies and strategies of relevance are briefly discussed below.

8 Beyond the current NAHA: what next for national housing policy?, Conference discussion paper, Hellene Gronda and Lauren Costello for AHURI Research Synthesis Service, October 2011.

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Planning and Environment Act 1987

The Planning and Environment Act 1987 (P&EA) provides the legal framework for the operation of Victoria's planning system. Section 4(1) identifies the overarching objectives of planning in the state, including: a) to provide for the fair, orderly, economic and sustainable use, and development of land; b) to provide for the protection of natural and man-made resources and the maintenance of ecological processes and genetic diversity; c) to secure a pleasant, efficient and safe working, living and recreational environment for all Victorians and visitors to Victoria; d) to conserve and enhance those buildings, areas or other places which are of scientific, aesthetic, architectural or historical interest, or otherwise of special cultural value; e) to protect public utilities and other assets and enable the orderly provision and co-ordination of public utilities and other facilities for the benefit of the community; f) to facilitate development in accordance with the objectives set out in paragraphs (a), (b), (c), (d) and (e); g) to balance the present and future interests of all Victorians.

Victorian Integrated Housing Strategy

Released in 2010 by the Department of Human Services (DHS), the Victorian Integrated Housing Strategy (VIHS) seeks to ensure that current and future housing will be more affordable, more accessible and more sustainable for all Victorians. The VIHS focuses on five key areas: home buyers, tenants in the private market, social housing, homeless Victorians, and better homes. The VIHS is a reference document under the SPPF.

Plan Melbourne

Released in May 2014, the Victorian Government’s metropolitan planning strategy guides Melbourne’s housing, commercial and industrial development through to 2050. It seeks to integrate long-term land-use, infrastructure and transport planning to meet the population, housing and employment needs of the future.

The key directions with regards to housing include:

• Accommodating growth in Melbourne’s growth areas and targeted medium and high density development in defined residential change areas (including activity centres and Residential Growth Zone areas). (Direction 2.1) • Meet demand for new housing for an ageing population (e.g. downsizing and aging in place). (Direction 2.1)

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• Improve the quality and amenity of residential apartments given the current lack of regulations and guidelines. This is discussed further in Section 7.6. (Initiative 2.1.5) • Deliver housing close to jobs and transport. (Direction 2.2) • Increase the supply of social and affordable housing. (Directions 2.3 and 2.4) • Protect Melbourne and established suburbs from inappropriate development while delivering higher density housing in defined locations near jobs and transport. (Direction 4.2)

Ministerial Direction No.16 - Residential Zones

The Minister for Planning introduced Ministerial Direction No.16 - Residential Zones (MD16) on 1 July 2014, shortly after the new residential zones were introduced in Boroondara.

MD16 requires metropolitan councils to prepare a housing strategy to inform the application of all three new residential zones. Additionally, MD16 also requires councils to evaluate and monitor the implications of the new residential zones within two years of their gazettal into a planning scheme.

The introduction of MD16 indicates that future substantial reviews of the approved residential zones will need to be supported by a housing strategy.

State Planning Policy Framework

The SPPF sets out the vision for land use and development in Victoria which integrate relevant environmental, social and economic factors in the interests of net community benefit and sustainable development.

These policies include a number of themes relevant to housing including:

• Clause 11 - Settlement which focuses on the provision of housing diversity in defined locations close to jobs, services and public transport (such as activity centres), including facilitating the supply of social and affordable housing. • Clause 15 - Built Environment and Heritage which seeks to promote positive development outcomes that contribute to local urban character (including any heritage places), enhance the public realm and minimise detrimental impact on neighbouring properties. • Clause 16 - Housing which addresses a number of housing related issues including housing diversity, provision of housing in locations with access to activity centres, public transport, schools and open space, and affordable housing.

27 Boroondara Housing Strategy (December 2015)

5.3 Local

The Boroondara Planning Scheme contains policies and/or strategies relevant to the provision of housing in the municipality. Local land use policies are reflected in the Local Planning Policy Framework (LPPF) which comprises the Municipal Strategic Statement (MSS) and Local Planning Policies.

There are a number of Boroondara policies and/or strategies relevant to the consideration of provision of housing within the City of Boroondara. This includes:

Our Boroondara - Our City Our Future (2008)

‘Our Boroondara’ is the long-term vision for Boroondara and was developed in consultation with the community. It addresses social, economic and environmental wellbeing issues through a number of themes. Themes of direct relevance to this housing strategy include “Community wellbeing” (Vision Theme 1) and “planning a well-designed sustainable city” (Vision Theme 3).

Council Plan (2013-17)

The Council Plan 2013-2017 sets the strategic direction and activities that Council will focus upon in the near future. The key Strategic Objective of relevance to this housing strategy is to protect and improve the character of our neighbourhoods.

Boroondara Public Health and Wellbeing Plan (2013 - 2017)

The Boroondara Public Health and Wellbeing Plan (BPHWP) seeks to enhance the health, wellbeing and safety of the Boroondara community.

Theme 2 - Liveable, sustainable, health promoting City and the associated strategic objective to ‘enhance and develop our neighbourhoods to support health and wellbeing’ have the greatest relevance to this housing strategy. Key strategies to achieve this objective include:

• Consideration of health promoting principles when planning and developing the built environment (Strategy 2.1) • Supporting practices that assist Council and the community maintain and enhance our natural environment for future generations (Strategy 2.2) • supporting and promote safe and accessible environments for all (Strategy 2.3) • Reducing car dependency and promote active transport (Strategy 2.4).

The BPHWP also identifies the cost of housing as a key influence on the community’s wellbeing.

28 Boroondara Housing Strategy (December 2015)

Creating an Age-friendly Boroondara (2014-2019)

The strategy identifies housing diversity able to accommodate older people’s changing needs as an important issue in creating an age-friendly Boroondara.

Local Planning Policy Framework

The LPPF sets out a number of housing related policy objectives and strategies. Contained within the Municipal Strategic Statement (MSS) and various local planning policies, the following objectives are of particular relevance:

• Clause 21.04 The Vision for Boroondara identifies the preservation and enhancement of the City’s amenity and high quality urban environment as key issues and seeks to facilitate appropriate development. • Clause 21.05 Heritage, Landscapes and Urban Character seeks to ensure that the City has its own distinctive urban character identity, setting it apart from other areas in Melbourne. • Clause 21.06 Environment encourages all new development to be energy efficient and environmentally clean and sensitive, and seeks to enhance the well-being of residential and commercial environments for future generations. • Clause 21.07 Residential Land Use encourages the provision of a range of housing types to meet the housing needs of a diverse community while also maintaining and enhancing the City’s present degree of residential amenity and high standard of residential development. • Clause 21.08 Activity Centres, Neighbourhood Centres and Commercial Corridors seeks to encourage higher density residential development which visually enhances the streetscape and has regard to the amenity of adjoining residential properties. These locations are also identified as appropriate locations for social and affordable housing. • Clause 21.12 Movement encourages new higher density residential development to be located in and around existing commercial centres and close to public transport. • Clause 22.02 Camberwell Junction Policy encourages a variety of forms of housing in and around the Junction, high standards of design and seeks to protect the amenity of surrounding residential areas. This policy is based on the 1993 version of the Camberwell Junction Structure Plan and has not been updated to reflect the new structure plan adopted by Council in 2008 (updated in 2011). • Clause 22.05 Heritage Policy encourages the retention and conservation of heritage places in Boroondara. It promotes urban and architectural design which supports the ongoing significance of heritage places and requires development within activity centres to respect, protect and enhance the cultural heritage significance of identified heritage places.

29 Boroondara Housing Strategy (December 2015)

• Clause 22.07 Neighbourhood Character Policy encourages design solutions which enhance and respond positively and creatively to the existing neighbourhood character of residential areas. New residential development has to achieve the preferred character outcomes set out in the relevant Neighbourhood Character Precinct Statement 2013. A new local planning policy is currently proposed as part of the Boroondara Planning Scheme Update to reflect the adopted Neighbourhood Character Study 2012. • Clause 22.10 Neighbourhood Centres and Commercial Corridors Land Use and Urban Design Policy encourages higher density residential development, including social and affordable housing in appropriate locations. This policy implements the objectives, strategies and guidelines set out in the Neighbourhood Centres and Commercial Corridor Guidelines 2014. • Clause 22.15 West Hawthorn Area Policy recognises West Hawthorn’s potential to provide for a diversity of higher density housing opportunities and urban consolidation. This policy implements the objectives, strategies and guidelines set out in the West Hawthorn Urban Design Framework 2006.

In addition to the above, Council also has adopted a number of strategies that are yet to be implemented into the Boroondara Planning Scheme. These include:

• Glenferrie Structure Plan (GSP), 2011: Adopted by Council in August 2010 (and updated in 2011) the GSP sets out guidelines for built form, height, land use, character, heritage, traffic, parking and access. The GSP is proposed to be implemented into the Boroondara Planning Scheme through Amendment C139 currently awaiting the Minister for Planning’s approval. The proposed local planning policy (Clause 22.18) sets out land use guidance and seeks to increase housing diversity in the centre for all age groups, including the provision of housing for lower income households and student housing. • Kew Junction Structure Plan (KJSP), 2009: Adopted by Council in November 2009 (and updated in 2011) the KJSP sets out guidelines for built form, height, land use, character, heritage, traffic, parking and access. The KJSP is proposed to be implemented into the Boroondara Planning Scheme through Amendment C138 currently awaiting the Minister for Planning’s approval. A proposed local planning policy (Clause 22.17) sets out land use guidance for the centre. Specifically, the proposed policy promotes Kew Junction as a desirable location for housing diversity including higher density residential development; encourages a stronger expression of the local identity of Kew Junction in the design of new buildings and spaces; and encourages development that is environmentally sustainable. • Residential Design Policy (RDP). Adopted in 2003 and updated in 2011, the policy sets out design standards for residential development over and above the general ResCode (Clause 54 and 55) standards (e.g. front, side and rear setbacks, private open space, car parking and the site coverage). The RDP is considered when assessing development applications for residential developments within the residential zones.

30 Boroondara Housing Strategy (December 2015)

New residential zones

The new residential zones were introduced by the Victorian Government on 1 July 2013 with the aim of better managing growth and protect liveability and neighbourhood character.

The three new residential zones were introduced in the City of Boroondara on 16 June 2014 through Amendment C190 to the Boroondara Planning Scheme and are based on the Boroondara Neighbourhood Character Study 2012.

The zones provide a housing framework that protects the valued neighbourhood character of the City’s residential areas. The overarching objective to protect the established character is balanced with the need to allow for new residential developments to occur in areas where the existing character can absorb additional housing.

Table 5.1 shows the different residential zones applied throughout the City of Boroondara. In addition the table also includes the Commercial 1 Zone and Mixed Use Zone, as they also allow for residential uses to occur and play an important role in the provision of housing within the municipality.

31 Boroondara Housing Strategy (December 2015)

Table 5.1: Zones allowing for residential uses9 Zone Purpose/preferred development outcomes Supports minimal change and protection of preferred Neighbourhood Residential neighbourhood character. Zone 3 Limits development to 8 metres in height and a maximum of two dwellings to a lot. Supports moderate change consisting of 1 to 2 storey General Residential Zone detached dwellings, villa and townhouse style Schedule 1 developments. Provides a 9 metre mandatory height limit. Supports moderate change reflecting a mixture of 1-2 General Residential Zone storey detached dwellings, villas and townhouses and 2- Schedule 2 3 storey apartment buildings. Provides a 10.5 metre mandatory height limit. Supports moderate change reflecting a mixture of 1-2 General Residential Zone storey detached dwellings, villas and townhouses and 2- Schedule 3 3 storey apartment buildings. Provides a 10.5 metre mandatory height limit. Supports development at greater density and height General Residential Zone than the surrounding area and precinct, while Schedule 4 - Supersized lots maintaining amenity and character.

Provides a 9 metre discretionary height limit. General Residential Zone Development outcomes in accordance with any Schedule 4 - Residential adopted structure plan and/or Design and Development land in commercial centres Overlay. Supports moderate change consistent with preferred General Residential Zone neighbourhood character. Schedule 5 Provides a 9 metre discretionary height limit. Encourage increased housing density and diversity in the context of a transition between the Commercial 1 Residential Growth Zone Zone and the General Residential Zone, and in some Schedule 1 cases, the Neighbourhood Residential Zone. Provides a 13.5 metre discretionary height limit. Encourage increased housing density and diversity at the upper levels above commercial uses in accordance Commercial 1 Zone with an adopted structure plan, guidelines or Design and Development Overlay. Encourage high density residential development whilst recognising a commercial context in accordance with an Mixed Use Zone adopted structure plan, guidelines or Design and Development Overlay.

9 Excludes Priority Development Zone, Comprehensive Development Zone and public use zones that may also allow for residential uses to occur. These zones play only a marginal role in the provision of housing within the municipality.

32 Boroondara Housing Strategy (December 2015)

6 Housing Profile and Analysis

6.1 Housing and Households in Boroondara

Key Messages:

• In 2014, the estimated resident population for the City of Boroondara was 172,612. • From 2006 to 2011, there were less “young families” living in Boroondara and a significant increase in the number of “empty nesters and retirees”, indicating an aging population. • In the City of Boroondara, “couples with children” is the largest household type, followed by “lone person” and “couples without children” households. • In 2011, the majority of the dwellings in Boroondara were separate houses which were preferred by most (85%) “couples with children” households. In contrast, more than half of lone person and group households lived in either medium or high density dwellings. • Dwellings with three plus bedrooms dominate most suburbs in Boroondara. Smaller dwellings, in particular one-bedroom dwellings are concentrated in Hawthorn and Hawthorn East. • Large detached dwellings will continue to be sought after by families. However, it is important to provide a diverse range of housing stock including smaller dwellings for young families and the aging population.

6.1.1 Population

The 2011 Australian Bureau of Statistics (ABS) Census counted 159,181 persons living in the City of Boroondara.

In 2014, the ABS estimated resident population10 for the City of Boroondara was 172,612, with a population density of 28.79 persons per hectare.

6.1.2 Age profile

In 2011, the City of Boroondara had a lower proportion of pre-schoolers and a higher proportion of persons at post-retirement age than Greater Melbourne, as shown in Table 6.1.

10 The estimated residential population is the official City of Boroondara population for 2014.

33 Boroondara Housing Strategy (December 2015)

Table 6.1: Age Structure in Boroondara (2011) City of Greater Boroondara Melbourne (2011) (2011) Service age group11 (years) Number % % Babies and pre-schoolers (0 to 4) 8,176 5.1 6.5 Primary schoolers (5 to 11) 13,492 8.5 8.4 Secondary schoolers (12 to 17) 12,909 8.1 7.3 Tertiary education and independence (18 to 24) 17,732 11.1 10.1 Young workforce (25 to 34) 20,414 12.8 15.4 Parents and homebuilders (35 to 49) 33,313 20.9 22.0 Older workers and pre-retirees (50 to 59) 20,936 13.2 12.1 Empty nesters and retirees (60 to 69) 14,987 9.4 9.0 Seniors (70 to 84) 12,601 7.9 7.4 Elderly aged (85 and over) 4,621 2.9 1.8 Total population 159,181 100.0 100.0 Source: ABS Census (2011) and .id Consulting (2015)

Between 2006 and 2011, the largest change in the age structure was the increase in ‘empty nesters and retirees’, demonstrating an aging population in Boroondara (Figure 6.1). There was also a decrease in the number of babies and pre-schoolers as well as parents, indicating a decrease of young families living in the municipality.

Figure 6.1: Change in Age Structure in Boroondara (2006 - 2011) Source: .id Consulting (2015)

Future planning for housing must take into consideration the changing housing needs of the aging population, as well as providing housing options for young families to maintain a balanced age structure.

11 Service age groups divide the population into age categories that reflect typical life-stages. They indicate the level of demand for services that target people at different stages in life and how that demand is changing.

34 Boroondara Housing Strategy (December 2015)

6.1.3 Migration flows

Between 2006 and 2011, there were some notable migration flows in and out of the City of Boroondara as shown in Figure 6.2 below.

Figure 6.2: Migration flows 2006-2011 Source: .id Consulting (2015)

There were notable large in-bound migration flows from overseas and Regional Victoria to the municipality. As shown in Figure 6.3, between 2006 and 2011 a large number of secondary and tertiary aged residents moved to Boroondara, followed by residents aged between 35 to 44 and young children aged between 0 to 14. The large gain of tertiary students in their late teens and early twenties were likely due to Swinburne University of Technology in Hawthorn, which may have contributed to the large in-flow migration to Hawthorn area as shown in Figure 6.2.

35 Boroondara Housing Strategy (December 2015)

3,000

2,500

2,000

2011) 1,500

1,000

500

0 Net Migration (2006 - 90+ 0-4 5-9

-500 85-89 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84

-1,000

-1,500 Age Groups

Figure 6.3: Net migration by age groups in the City of Boroondara

Migration flows out of the City were to neighbouring municipalities and the Mornington Peninsula. The strongest outward migration was to the City of Whitehorse. The migrations flows out of the City (in particular residents aged between 25-29 and 55+) are consistent with the increased number of “empty nesters and retirees” and the decreased number of “young families”, who may have moved out of the City due to lifestyle choices or the availability of suitable dwellings elsewhere.

Research found that different areas in the City have developed different roles within the housing market overtime, which can be generalized as follows:

• areas that typically attract young adults and tertiary students, such as Hawthorn and Hawthorn East due to the proximity of Swinburne University and access to other tertiary education facilities in the inner City; and • areas that typically attract established and mature families, such as Surrey Hills, Glen Iris, Ashburton, Canterbury, Balwyn, Deepdene and Balwyn North, where the housing stock, the amenity and attractiveness of the areas drive local migration patterns. • Kew, Kew East and Camberwell tend to combine elements of both migration patterns.

Planning for future housing needs will need to consider providing a mix of housing options to cater for a variety of local housing needs.

36 Boroondara Housing Strategy (December 2015)

6.1.4 Household type

As shown in Table 6.2, the largest household type in the City of Boroondara is “Couples with children” representing approximately 35% of all households in 2006 and 36% in 2011.

The second largest household type is “Lone person” households (24% of all households in 2006 and 23% in 2011), consistent with an aging population.

Table 6.2: Change in household types in Boroondara (2006 - 2011) City of Boroondara 2006 2011 Change Households by type Number % Number % 2006 to 2011 Couples with children 20,313 34.9 21,156 35.5 +843 (4.2%) Couples without children 12,742 21.9 13,530 22.7 +788 (6.2%) One parent families 4,588 7.9 4,623 7.8 +35 (0.8%) Other families 1,016 1.7 918 1.5 -98 (-9.6%) Group household 3,139 5.4 3,148 5.3 +9 (0.3%) Lone person 13,977 24.0 13,849 23.2 -128 (0.9%) Other not classifiable 1,934 3.3 1,727 2.9 -207 (-10.7%) household Visitor only households 490 0.8 640 1.1 +150 (30.6%) Total households 58,199 100.0 59,591 100.0 +1,392 (2.4%) Source: ABS Census (2011), .id Consulting (2015)

“Couples with children” and “Couples without children” households experienced the biggest increase between 2006 and 2011. The demand for family housing stocks is likely to continue in the municipality, however, future housing planning should also consider providing housing options for smaller households, such as “Couples without children” households.

6.1.5 Dwelling type and density

“Separate house” has been the dominant dwelling type in the City of Boroondara (61.6% in 2006 and 61.7% in 2011). In 2011, Boroondara also had a large proportion of medium or high density12 dwelling (37.8%)13.

As shown in Table 6.3 and Table 6.4, dwellings with three bedrooms were the most common in the municipality (approx. 35% in 2006 and 34% in 2011). However, between 2006 and 2011, the biggest change was the 18% increase in

12 The ABS Census 2011 defines dwelling types as follows: • separate house - all free-standing dwelling separated from neighbouring dwellings by a gap of at least half a metre. • medium density - all semi- detached, row, terrace, townhouses and villa units, flats and apartments in one or two storey blocks, and flats attached to houses. • high density - flats and apartments in three storey and larger blocks

13 Source: ABS Census,.id Consulting 2015

37 Boroondara Housing Strategy (December 2015)

the number of studios and one bedroom dwellings, indicating an increasing level of high density residential development in the municipality. There was also a 13.4% increase of five plus bedroom properties, most likely existing buildings being demolished and rebuilt for larger family homes.

Table 6.3: Number of bedrooms per dwelling City of Boroondara 2006 2011 Change Number of bedrooms Number % Number % 2006 to 2011 0 or 1 bedrooms 3,171 5.4 3,743 6.3 +572 (18%) 2 bedrooms 15,633 26.9 15,617 26.2 -16 (-0.1%) 3 bedrooms 20,545 35.3 20,060 33.7 -485 (-2.4%) 4 bedrooms 12,285 21.1 13,429 22.5 +1,144 (9.3%) 5 bedrooms or more 3,749 6.4 4,253 7.1 +504 (13.4%) Not stated 2,818 4.8 2,489 4.2 -329 (-11.7%) Total dwellings 58,201 100.0 59,591 100.0 +1,390 (2.4%) Source: ABS Census (2011), .id Consulting (2015)

Dwellings with two or less bedrooms

Research found that 1-2 bedroom high density dwellings are likely to attract students, single workers and young couples, whereas 2-3 bedroom high density dwellings attract more empty nesters and some families14.

Geographically, smaller 1 and 2 bedroom dwellings are concentrated in Hawthorn and Hawthorn East. In 2011, Hawthorn had significantly more dwellings with two or less bedrooms than any other suburbs in Boroondara. It also accommodated the largest increase in the number of household between 2006 and 2011 compared to other suburbs.

Most other suburbs had a relatively low proportion of one-bedroom dwellings (between 1-4% of the suburb’s housing stock) but a more balanced distribution of two-bedroom dwellings (around 25% of each suburb’s housing stock).

Dwellings with three or more bedrooms

Dwellings with three plus bedrooms traditionally attract more family households. These “family friendly” or more traditional housing stock dominate most suburbs in Boroondara. In 2011, over 40% of housing stock in Ashburton, Balwyn North and Kew East and over 30% of housing stock in most other suburbs (except for Hawthorn and Hawthorn East) were three-bedroom dwellings; over 30% of housing stock in Balwyn North were four-bedroom dwellings.

Table 6.4 provides a detailed breakdown of the number of occupied dwellings (and their sizes) in each suburb based on 2006 and 2011 Census data.

14 Source: .id Consulting (2015)

38 Boroondara Housing Strategy (December 2015)

The data represents a useful indication of the development trend from 2006- 2011 in regards to dwelling size in each suburb. It does not represent the total number of dwellings in each suburb.

39 Boroondara Housing Strategy (December 2015)

Table 6.4: Number of bedrooms per dwelling by suburb

Number of occupied dwellings* and the number of bedrooms per dwelling

Suburb 0-1 2 3 4 5+ Not stated

Change Change Change Change Change Change 2011 % 2011 % 2011 % 2011 % 2011 % 2011 % (2006-2011) (2006-2011) (2006-2011) (2006-2011) (2006-2011) (2006-2011)

Ashburton 67 2% 7 612 23% -36 1177 43% -53 588 22% 89 176 6% 55 92 3% -2 Balwyn 148 3% 22 1245 26% -55 1690 35% -133 1195 25% 51 419 9% 69 171 4% -11 Balwyn 37 1% 15 801 12% -103 2933 43% -131 2289 33% 151 639 9% 89 193 3% -44 North Camberwell 163 2% -24 1844 25% -42 2642 35% 42 1994 27% 148 626 8% 89 190 3% -82 Canterbury 107 4% -3 589 22% -10 885 32% -23 792 29% 27 269 10% -10 103 4% -7 Deepdene 7 1% 0 176 24% 55 232 31% 28 192 26% 24 88 12% 34 42 6% 33 Glen Iris 144 3% 72 1114 20% 45 2140 39% -69 1458 27% 138 402 7% 48 185 3% -1 Hawthorn 1982 21% 399 3521 37% 222 1930 20% -81 1012 11% 97 403 4% 27 573 6% -106 Hawthorn 676 13% 67 1810 35% -58 1430 27% -87 729 14% 22 249 5% 24 345 7% 1 East Kew 325 4% 84 2501 29% 9 2959 34% -4 1894 22% 273 636 7% 44 451 5% -27 Kew East 32 1% -8 609 26% -11 989 42% 6 531 23% 79 124 5% 22 70 3% -57 Surrey Hills 90 3% 5 809 27% -31 1014 34% -34 810 27% 82 221 7% 19 72 2% -29 *Represent the number of occupied dwellings on census night, not the total number of dwellings per suburb. Source: .id Consulting (2015), compiled by the City of Boroondara

40 Boroondara Housing Strategy (December 2015)

6.1.6 Housing preference

In 2011, 85% of couples with children lived in separate houses and 14% lived in high density dwellings. In contrast, more than half of lone person and group households lived in either medium or high density dwellings (Figure 6.4).

Separate house Medium density High density Other 100%

80%

60%

40%

20% % of dwellings/households % of

0% Dwellings Couple only Couple with One parent Lone person Group households children households households households households Household type

Figure 6.4: Proportion of dwellings and households by dwelling density, Boroondara (2011) Source: ABS Census, compiled and presented by City of Boroondara 2014

Different households are likely to live in different dwelling types. The 2011 Census data suggests that detached dwellings are preferred by most family households and smaller dwellings are preferred by young adults and retirees.

6.1.7 Household income and housing costs

In the City of Boroondara there is a larger proportion of high income households (those earning $2,500 per week or more) and a lower proportion of low income households (those earning less than $1000 per week) compared to Greater Melbourne (Figure 6.5).

41 Boroondara Housing Strategy (December 2015)

Figure 6.5: Weekly household income (2011) Source: ABS Census, compiled by .id Consulting

This indicates that there was a larger proportion of high income households (those earning $2,500+ per week) and a lower proportion of low income households (those earning less than $600 per week) in the City of Boroondara compared to Greater Melbourne. Overall, approx. 35% of the Boroondara households were high income households and approx. 15% were low income households.

Housing costs in Boroondara are also relatively high (Table 6.5 and Table 6.6). However, the cost of housing in Boroondara reflects the quality housing stock, high amenity and well serviced neighbourhoods and proximity to the city. Housing costs in Boroondara are more comparable to the inner Melbourne region.

Table 6.5 Median weekly rent, December quarter 2014 Type of housing Boroondara Greater Melbourne One-bedroom flat $295 $320 Two-bedroom flat $385 $370 Three-bedroom flat $518 $400 Two-bedroom house $450 $400 Three-bedroom house $580 $360 Four-bedroom house $900 $410 Source: Department of Human Services - Quarterly Rental Reports

Table 6.6: Median house and unit prices (real, adjusted in line with CPI), 2013 Type of housing Boroondara Inner Melbourne Greater Melbourne Houses $1,410,000 $1,056,500 $520,000 Units $600,000 $515,000 $441,000 Source: Housing in Victoria - custom report

42 Boroondara Housing Strategy (December 2015)

6.1.8 Other housing

There are a range of non-private dwellings including nursing homes, hostels, boarding houses and hospitals in Boroondara, managed by private organisations.

The Department of Human Services (DHS) also manages public housing in the municipality. Social housing is provided and managed by the Victorian government and non-government organisations, supported by funding from the Australian Government, to assist those who are in greatest need.

The City of Boroondara is not directly involved in the management of these housing types but plays an active advocate role with relevant government agencies.

6.1.9 Conclusions

“Couples with children” remains to be the largest household type in the City of Boroondara. Detached houses with three plus bedrooms also remain the dominant dwelling type. In 2011, 85% of couples with children lived in separate houses and 14% lived in high density dwellings. Large detached dwellings will continue to be sought after by families.

However, the number of “lone person” and the increase in “couples without children” households from 2006 to 2011 indicates that there is an aging population in the City of Boroondara and potentially increased demand for smaller dwellings. There was also a large increase in the number of high density dwellings being developed since 2006 indicating a market demand for smaller households such as young adults and retirees. In 2011, more than half of lone person and group households lived in either medium or high density dwellings. Future planning for housing must take into consideration the aging population, which is likely to have changing housing needs.

Housing costs, especially for large detached houses in Boroondara are relatively high. However, the cost of housing in Boroondara reflects the quality housing stock, high amenity and well serviced neighbourhoods and proximity to the city. Providing a diverse range of housing options, e.g. smaller dwellings in appropriate locations will help young families to settle in the municipality as well as older residents to age in place.

43 Boroondara Housing Strategy (December 2015)

6.2 Housing Demand

Key Messages:

A number of housing demand factors in the City of Boroondara are evident, including the need to: • Provide an additional 15,567 dwellings to cater for an additional 30,235 residents and 14,352 households by 2031. • Maintain sufficient supply of “family homes” for families with children. • Provide greater diversity of housing particularly for smaller households such as “couples without dependents” and “lone person households’” to cater for the aging population. • Ensure that there is a distribution of new dwellings across the municipality including a considerable proportion within commercial centres.

6.2.1 Population forecast

Based on .id Consulting’s modelling for the City of Boroondara in 2015, the population is projected to increase by 30,235 persons to 197,297 by 2031. The change in population across the service age groups between 2011 and 2031 is shown in Table 6.7.

Comparatively, VIF2015 projects the estimate resident population in 2031 to be 195,806 which presents an increase of 28,744 persons from the estimated resident population in 2011 of 167,062.

Whilst both the VIF2015 and .id Consulting modelling is derived from the ABS Census (2011), the forecast.id modelling also considers local drivers of population change including current and planned residential development activity. This ensures that the .id Consulting modelling most accurately reflects local population characteristics.

44 Boroondara Housing Strategy (December 2015)

Table 6.7: Forecast age structure - Service Age Groups (2011-2031) City of Boroondara - Change between 2011 2031 Total persons 2011 and 2031 Age group (years) Number % Number % Number % Babies and pre-schoolers 8,410 5.0 9,825 5.0 1,415 16.8 (0 to 4) Primary schoolers (5 to 13,774 8.2 14,665 7.4 891 6.5 11) Secondary schoolers 13,056 7.8 14,269 7.2 1,213 9.3 (12 to 17) Tertiary education and 19,637 11.8 21,333 10.8 1,696 8.6 independence (18 to 24) Young workforce (25 to 22,529 13.5 27,327 13.9 4,798 21.3 34) Parents and 34,471 20.6 38,535 19.5 4,064 11.8 homebuilders (35 to 49) Older workers and pre- 21,740 13.0 24,325 12.3 2,585 11.9 retirees (50 to 59) Empty nesters and 15,747 9.4 19,591 9.9 3,844 24.4 retirees (60 to 69) Seniors (70 to 84) 13,074 7.8 21,388 10.8 8,314 63.6 Elderly aged (85 +) 4,624 2.8 6,037 3.1 1,413 30.6 Total persons 167,06215 100 197,297 100 30,235 18.1% Source: .id Consulting (2015)

The significant increase in the “seniors” age group (70 to 84) is notable. The estimated additional 8,314 senior persons living in the City of Boroondara in 2031 presents an increase of 63.6% from the 2011 population. Together with the increases of “elderly aged” (30.6% increase) and “empty nesters and retirees” (24.4% increase), the ageing population is clearly one of the major housing issues to be addressed in the future.

Other notable increases include the number of residents aged between 25 to 34 (Young workforce, +4,800) and 35 to 49 (Parents and homebuilders, +4,064). These age groups are likely to have slightly different housing needs, potentially smaller and more affordable housing for younger residents and 3 plus bedroom dwellings for growing families.

The City of Boroondara’s housing stock will need to cater for the City’s growing population and changing demographics. A diverse range of housing stock will be required for a range of housing needs as demonstrated above.

15 Population numbers for the 2011 base year are derived from Estimated Resident Population from the Australian Bureau of Statistics. These differ from (and are usually higher than) Census counts as they factor in population missed by the Census and population overseas on Census night. They are generally considered a more accurate measure of population size than Census counts (source:.id Consulting).

45 Boroondara Housing Strategy (December 2015)

6.2.2 Housing forecast

It is estimated that in 2031 there will be an additional 14,352 households16 and 15,567 private dwellings17 in the City of Boroondara (Table 6.8 and Table 6.9).

Table 6.8: Forecast households and dwelling 2011-2031 City of Boroondara Forecast year Summary 2011 2031 Change Households 62,555 76,907 14,352 Population in non-private dwellings 3,596 4,044 448 Total private dwellings 65,575 81,142 15,567 Source: .id Consulting (2015)

Table 6.9: Forecast households types 2011-2031 City of Boroondara 2011 2031 Change Type Number % Number % Number Couple families with dependents 22,476 35.9 25,417 33.0 +2,942 Couples without dependents 15,065 24.1 20,436 26.6 +5,371 One parent family 4,758 7.6 5,473 7.1 +715 Other families 1,390 2.2 1,678 2.2 +289 Lone person households 15,310 24.5 19,725 25.6 +4,415 Group households 3,556 5.7 4,177 5.4 +620 Total 62,555 100 76,907 100 +14,352 Source: .id Consulting (2015)

As shown in Table 6.9, “couple families with dependents” are projected to remain as the most significant household type in the City of Boroondara. However, the greatest increase in the number of households between 2011 and 2031 will be “couples without dependents” and “lone person households”. This is consistent with the existing situation and the changes that occurred between 2006 and 2011 (refer to section 6.1.4).

It is important to ensure that housing suitable for “families with children” is maintained and expanded throughout the City. However, greater housing diversity for smaller households such as “couples without dependents” and “lone person households” must also be provided in appropriate locations.

In addition, opportunities are required to enable non-private dwellings to expand or new facilities to be built in order to cater for the increased number of persons

16 A household is defined for the purposes of the Census of Population and Housing as one or more persons, usually resident in the same private dwelling.

17 A dwelling is defined for the purposes of the Census of Population and Housing as a structure which is intended to have people live in it. Note- both occupied and unoccupied dwellings are counted in the Census.

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living in non-private dwellings, particularly those for older residents (e.g. aged care)

6.2.3 Housing distribution forecast

A breakdown of the projected additional dwelling by suburb in Boroondara is shown in Table 6.10.

Table 6.10: Forecast residential development, 2011-2031 City of Boroondara Change in dwellings between 2011 and 2031 Area number % Ashburton +349 +11.9 Balwyn +1,202 +22.4 Balwyn North +622 +8.3 Camberwell +2,641 +32.4 Canterbury +387 +12.7 Deepdene +202 +24.6 Glen Iris +614 +10.5 Hawthorn +3,569 +34.3 Hawthorn East +2,506 +42.3 Kew +2,610 +26.7 Kew East +247 +9.9 Surrey Hills +618 +19.0 City of Boroondara +15,567 +23.7 Source: .id Consulting (2015)

As shown in Table 6.10, suburbs that are projected to accommodate the most number of additional dwellings include Hawthorn East, Hawthorn, Camberwell and Kew. This is likely due to the larger commercial centres in these suburbs being able to absorb a large number of higher density residential developments in the future, such as Camberwell Junction, Kew Junction, Glenferrie activity centres and Burwood Road Commercial Corridor etc. Projected new dwellings are otherwise more evenly distributed across the City.

The projection is consistent with Council’s adopted structure plans and relevant policies, which encourage higher density residential development to be located within the large commercial centres (refer to Section 0). The projection also reflects the application of the GRZ areas and their ability to absorb additional development based on the established neighbourhood character.

6.2.4 Conclusion

The population forecasts indicate that “couple families with dependents” will remain the most significant household type in the City of Boroondara. However, there is a significant increase in the “seniors” age group (70 to 84) living in the City of Boroondara (an additional 8,314 senior persons or an increase of 63.6%

47 Boroondara Housing Strategy (December 2015)

from the 2011 population). Together with the increases of “elderly aged” (85+, 30.6% increase) and “empty nesters and retirees” (60-69, 24.4% increase), the ageing population’s housing needs is clearly one of the biggest housing issues to be addressed in the future. This is consistent with the household forecast which shows that the greatest increase in the number of households between 2011 and 2031 will be “couples without dependents” and “lone person households”.

The forecast population and households indicate a distinctive trend of an aging population which is also consistent with the City’s historic profile (Section 6.1). Future planning will need to ensure that housing suitable for “families with children” is maintained and expanded throughout the City. However, it also needs to provide a greater housing diversity for the aging population and smaller households such as “couples without dependents” and “lone person households”.

Projections also suggest that suburbs such as Hawthorn East, Hawthorn, Camberwell and Kew will accommodate the largest number of additional dwellings. This is likely due to the larger commercial centres being able to absorb a large number of higher density residential developments in the future, such as Camberwell Junction, Kew Junction, Glenferrie activity centres and Burwood Road Commercial Corridor etc. Council’s adopted structure plans and relevant policies also encourage higher density residential development to be located within the large commercial centres.

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6.3 Housing Capacity

Key Messages:

• Within the City of Boroondara there is capacity for an additional 62,546 dwellings. • An additional 38,291 dwellings can be accommodated in the residential areas and 24,255 additional dwellings can be accommodated in the commercial areas, including 2,369 dwellings on residential land within activity centres. • There is sufficient capacity to cater for the 15,567 dwellings projected to be required by 2031.

6.3.1 Methodology and assumptions

The analysis in this section has been derived from the Boroondara Housing Capacity Analysis - Technical Report (June 2015) prepared by SGS Economics and Planning.

The capacity analysis presents an individual lot level capacity assessment for the whole municipality and involved the identification of residential zoned land, Commercial 1 Zone (C1Z) and Mixed Use Zone (MUZ) that is available for additional residential development.

The analysis used the following criteria to exclude land that would not be available to accommodate additional residential dwellings:

• Properties affected by a single dwelling covenant; • strata titled buildings and shared lots; • small lots (<650m2 in NRZ; <500 other residential zones except supersized lots) which cannot be further subdivided; • Public infrastructure and facilities; • Properties recently developed; • Properties within the Heritage Overlay (individually significant and contributory buildings below certain lots size only).

The following criteria were applied to identify available land in commercial areas and the MUZ:

• Properties in a single dwelling covenant; • Properties recently developed (GRZ4 sites); • Properties with a significantly higher Capital Improved Value ratio (Capital Improved Value vs Site Value) (commercial properties); • Public infrastructure and facilities; • Small lots (less than 300sqm) and shared lots (e.g. driveways)

49 Boroondara Housing Strategy (December 2015)

Using the available land analysis, estimates were then derived at the lot level of potential yield under a ‘full build out’ scenario. The yield estimates recognise the constraints of each zone including a maximum number of dwellings and mandatory height limits (where applicable).

A full build out scenario does not consider dwelling take up rates, the propensity of individual landowners to develop land, nor an overall time horizon. This makes a housing capacity assessment different from an assessment of dwelling take up rates and a dwelling demand projection. However, the likelihood for development to occur within a particular horizon can be easily calculated by assuming a percentage take up of the overall dwelling capacity during particular periods.

A summary of the capacity methodology is provided below (Figure 6.6).

Figure 6.6: Housing capacity methodology overview Source: Boroondara Housing Capacity Analysis (Technical Report), SGS Economics and Planning, June 2015

6.3.2 Available residential land

Available land represents all residential and commercial zoned land that has the potential to accommodate additional housing. As stated, this does not mean that it is necessarily feasible or that landowners are ready or willing to develop a site. Typically only a small portion of available lots are likely to change in any one year. In turn, any realisation of Boroondara’s ‘dwelling capacity’ may take many decades to materialise depending on market conditions and the demand generated by an increasing population.

The available land assessment shows that 37.5% of Boroondara’s residential and commercial zoned land is potentially available for future housing supply (Table

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6.11). The available land within Boroondara consists of 1,770 hectares (ha), consisting of 20,387 lots.

6.3.3 Potential yield - residential land

To accurately calculate the potential number of additional dwellings within a location, a comparison of total capacity (or potential yield) to existing stock is required. This is referred to as ‘net capacity’ as described in the diagram below (Figure 6.7).

Figure 6.7: Net dwelling capacity definition Source: Boroondara Housing Capacity Analysis (Technical Report); SGS Economics and Planning, June 2015

The net dwelling capacity is provided for each residential zone and suburb. The analysis concluded that Boroondara has the capacity to accommodate an additional 62,546 dwellings on land which has been identified as being available. This includes net capacity of 38,291 dwellings on residential land and net capacity of 24,079 dwellings on commercial zoned land and GRZ4 sites in centres. There is net capacity of 176 dwellings in the Mixed Use Zone (MUZ). This has been derived by applying a series of yield and site density assumptions to the available land reflecting the mandatory controls for each zone (where applicable) and the policy intent of each zone.

Table 6.11 shows that approximately 35% of net capacity will be derived from residential development in the C1Z, and will yield an additional 21,710 dwellings out of the overall capacity of 62,546 additional dwellings. Approximately 29% of net capacity will be derived from low yield lots (1 additional dwelling) in the NRZ3, and will yield 17,857 additional dwellings. The second highest share of net capacity is in the GRZ1 (approx. 13%), followed by the GRZ3 (approx. 9%).

It is worth noting that although smaller in share of net capacity, the GRZ4 (supersized lots and residential land in centres) represents a substantial opportunity for intensification with net capacity significantly exceeding current dwelling stock. This is based on the assumption that these sites are currently underutilised from a dwelling capacity perspective. The area of Residential Growth Zone can also accommodate higher yields on a lot basis.

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Table 6.11: Summary of net capacity, by zone, Boroondara Land (HA) Lots Dwellings Total Net % Net Total Available Total Available (2012) Capacity Capacity NRZ3 3,619 1,296 43,892 14,963 45,223 17,857 28.6% GRZ1 513 234 6,546 2,835 7,115 8,064 12.9% GRZ2 86 19 929 194 1,766 1,906 3.0% GRZ3 180 59 2,664 734 5,719 5,378 8.6% GRZ4 (Supersized 27 9 32 8 373 811 1.3% lots) GRZ5 76 43 1,177 505 1,545 2,569 4.1% RGZ1 39 12 439 127 2,197 1,706 2.7% Residential 4,540 1,672 55,679 19,366 63,938 38,291 61% area subtotal C1Z 166 87 3,855 927 3,934 21,710 34.7% GRZ4 (Residential 15 10 153 82 340 2,369 3.8% land in centres) MUZ 2 1 23 12 179 176 0.3% Commercial 183 98 4,031 1,021 4,453 24,255 39% area subtotal Total 4,722 1,770 59,710 20,387 68,391 62,546 100% Source: Boroondara Housing Capacity Analysis (Technical Report), SGS Economics and Planning, June 2015, reformatted by Council.

Table 6.12 shows new capacity for each of Boroondara’s suburbs. Table 6.13 shows net capacity for each suburb, by zone. The key findings area as follows:

• Approximately one third of Boroondara’s net capacity will come from land in the C1Z. Table 6.12 suggests the greatest capacity exists in the suburbs of Camberwell, Kew and Hawthorn. This suggests that the 3 largest activity centres of Camberwell Junction, Kew Junction and Glenferrie and the Burwood/Camberwell Road Commercial Corridor will be expected to account for a significant share of net capacity in these suburbs. This is consistent with Council’s planning objective which is to focus as much new housing supply as possible into commercial areas, whilst also allowing for increased housing in residential areas, on the basis of preferred neighbourhood character. • Hawthorn and Camberwell could each potentially accommodate 20% of net capacity. This is largely associated with net capacity in the C1Z in Glenferrie and Camberwell Junction. Hawthorn has smaller relative net capacity in the NRZ3 but has the largest amount of net capacity in the RGZ1 and GRZ2, and the second highest net capacity in the GRZ3. Camberwell has significant net capacity in the NRZ3, and the largest net capacity in the GRZ1.

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• Kew could potentially accommodate 17% of net capacity. This is largely associated with net capacity in Kew Junction and net capacity in the GRZ3 and the NRZ3. • Hawthorn East accounts for a significant share of net capacity in the C1Z, mostly because this suburb includes a portion of Camberwell Junction. • The remaining suburbs account for shares of between 1% and 9% of net capacity. These suburbs include Ashburton, Balwyn, Balwyn North, Canterbury, Deepdene, Glen Iris, Kew East and Surrey Hills. Most of the net capacity in these suburbs in the NRZ3.

The net capacity of the GRZ5 is generally distributed across Boroondara’s suburbs reflecting the location of the zone. The notable exception is Hawthorn.

Table 6.12: Summary of dwelling capacity, by suburb, Boroondara Land (HA) Lots Dwellings

18 Total Net % Net Suburb Total Available Total Available (2012) Capacity Capacity Ashburton 241 93 3,036 1,156 3,071 1,936 3.1% Balwyn 409 167 5,517 1,960 5,583 5,351 8.6% Balwyn 689 231 7,945 2,941 7,585 3,885 6.2% North Camberwell 670 303 8,601 3,484 8,135 11,890 19.0% Canterbury 282 123 3,033 1,224 2,958 2,662 4.3% Deepdene 73 28 985 310 981 1,007 1.6% Glen Iris 458 129 6,070 1,625 5,980 2,648 4.2% Hawthorn 445 133 6,168 1,322 11,676 12,812 20.5% Hawthorn 287 97 4,422 1,105 6,576 5,601 9.0% East Kew 730 284 8,292 3,020 10,329 10,758 17.2% Kew East 196 82 2,356 1,071 2,405 1,939 3.1% Surrey Hills 242 100 3,285 1,170 3,112 2,057 3.3% Total 4,722 1,770 59,710 20,388 68,391 62,546 100%

Source: Boroondara Housing Capacity Analysis (Technical Report), SGS Economics and Planning, June 2015, reformatted by Council.

18 There is a small section of Mont Albert within Boroondara. For capacity and forecasting purposes, this has been merged with Balwyn and is not separately itemised.

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Table 6.13: Summary of net dwelling capacity by suburb and zone, Boroondara

Suburb NRZ3 GRZ1 GRZ2 GRZ3 GRZ4 GRZ5 RGZ1 C1Z MUZ Net Capacity % Net Capacity

Ashburton 1,116 0 0 0 285 320 0 215 0 1,936 3.1% Balwyn 1,680 1,466 0 0 495 117 0 1,593 0 5,351 8.6% Balwyn North 3,001 0 0 0 90 246 0 548 0 3,885 6.2% Camberwell 2,273 3,610 0 51 826 452 0 4,678 0 11,890 19.0% Canterbury 1,404 627 0 0 67 240 0 324 0 2,662 4.3% Deepdene 376 39 0 0 32 96 0 464 0 1,007 1.6% Glen Iris 1,388 680 0 0 0 218 0 362 0 2,648 4.2% Hawthorn 910 0 1,509 1,441 464 0 1,421 7,067 0 12,812 20.5% Hawthorn East 1,027 0 62 1,054 177 273 285 2,547 176 5,601 9.0% Kew 2,545 1,629 335 2,639 489 325 0 2,796 0 10,758 17.2% Kew East 977 0 0 193 189 123 0 457 0 1,939 3.1% Surrey Hills 1,160 13 0 0 66 159 0 659 0 2,057 3.3% Total 17,857 8,064 1,906 5,378 3,180 2,569 1,706 21,710 176 62,546 100% % by zone 29% 13% 3% 9% 5% 4% 3% 35% 0% 100%

Source: Boroondara Housing Capacity Analysis (Technical Report), SGS Economics and Planning, June 2015, reformatted by Council.

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6.3.4 Additional land

Within the City of Boroondara there are various parcels of land that may provide additional opportunities for housing. Much of this land is currently within a Public Use Zone (PUZ) and owned by a public agency. Further investigation is required in respect to parcels which may be suitable for housing and the potential capacity of these parcels to provide housing.

It is anticipated this design assessment and capacity analysis be undertaken on a case-by-case basis to ensure specific opportunities and constraints for each site are properly examined.

6.3.5 Alignment of housing demand and capacity

Table 6.14 reviews the alignment of housing demand and net capacity by each suburb in Boroondara. The purpose of this analysis is to assess whether there is sufficient capacity in Boroondara’s suburbs to accommodate projected housing demand by suburb to 2031. The analysis shows that Boroondara can comfortably meet projected housing demand to 2031 and beyond in all suburbs. In all, Boroondara can provide sufficient net capacity to accommodate at least four times the level of projected housing demand to 2031, assuming full build out.

Table 6.14: Summary of housing demand (2031) and net dwelling capacity by suburb, Boroondara Suburb Demand to 2031 Net Capacity Difference Ashburton 349 1,936 1,587 Balwyn 1,202 5,351 4,149 Balwyn North 622 3,885 3,263 Camberwell 2,641 11,890 9,249 Canterbury 387 2,662 2,275 Deepdene 202 1,007 805 Glen Iris 614 2,648 2,034 Hawthorn 3,569 12,812 9,243 Hawthorn East 2,506 5,601 3,095 Kew 2,610 10,758 8,148 Kew East 247 1,939 1,692 Surrey Hills 618 2,057 1,439 Total 15,567 62,546 46,979 Source: .id Consulting; Boroondara Housing Capacity Analysis (Technical Report), SGS Economics and Planning, June 2015; formatted by Council.

Significant demand for new housing is expected to come from Hawthorn, Camberwell, Kew and Hawthorn East. This aligns with where the greatest net capacity exists in Boroondara on a suburb basis and in particular the location of Boroondara’s three largest activity centres of Camberwell Junction, Kew Junction and Hawthorn-Glenferrie.

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Given the large disparity which exists between demand and net capacity in Camberwell Junction, Kew Junction and Hawthorn- Glenferrie, it could be expected that these areas account for a greater level of demand than just their immediate host suburbs. This would have the effect of the 3 activity centres absorbing housing demand from other suburbs in Boroondara, which would assist in alleviating pressure on infrastructure and neighbourhood character in other suburbs, neighbourhood centres and local centres.

It is noted that Deepdene may approach its net capacity in a shorter time period than other suburbs, where the difference between housing demand to 2031 and net capacity is 701 dwellings. However, given the capacity of the remaining suburbs in Boroondara, it is possible that should housing demand in Deepdene eventually approach capacity, this demand may be provided in the adjoining or nearby suburbs of Boroondara.

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7 Issues and Opportunities

What areas do we need to focus on over the next 15 years?

Council’s current strategic framework, implemented through the new residential zones, Neighbourhood Centres and Commercial Corridors Guidelines as well as various structure plans, provides a sound strategic basis to meet the housing needs of current and future residents.

As detailed in Chapters 3 and 6, the current mix of residential zones along with Boroondara’s commercial areas provide more than sufficient capacity to meet projected house needs to 2031 and beyond.

However, Council’s obligations are not only to provide enough capacity to meet projected housing demand, but to provide housing that meets the expectations and needs of all existing and future residents.

In the short to medium term (next 1 to 6 years), natural changes to Boroondara’s demographics is expected to generate the need for approximately 5000 additional dwellings (.id Consulting 2015). In the medium to long term (7 to 15 years) it is projected that Boroondara will need to accommodate a further 10,000+ dwellings to meet housing need. Consequently, the current mix of zones provides amply capacity to provide a mix of house types to meet short to medium term housing demand. However, continued monitoring is needed to ensure changes to Boroondara’s housing needs can be met over the medium to long term. In particular changes to the age structure, which is projected to see an increased demand for smaller dwellings.

7.1 Protection of Neighbourhood Character

Residents in Boroondara place a high value on the unique characteristics of the municipality, including its heritage buildings and tree lined streets. This will continue to be a key driver for housing outcomes over the next 15 years.

Consultation on the new residential zones in 2014 identified a number of precincts that required further investigation to ensure the valued character attributes are protected. This process also resulted in an undertaking to review the treatment of main roads in Boroondara to establish principles that would guide development along main roads and provide strategic direction for the ultimate zone of areas that were included in the General Residential Zone - Schedule 5 (GRZ5). Council gave residents a commitment it would investigate these areas following the completion of a housing strategy.

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Furthermore, given that the use of the Neighbourhood Character Precinct Statements in the assessment of planning permit applications is only new, Council needs to monitor and review how the Neighbourhood Character Precinct Statements are assisting with the assessment of planning permit applications, and refine the statement, as needed, to ensure the desired built form outcomes are being achieved. This could also include changes to the Neighbourhood Character Precinct Statements, schedules to the residential zones, and new overlays.

Consultation on the draft BHS in 2015 found that the majority of submitters supported the continued protection of neighbourhood character. Many submitters also expressed their concerns on the loss of vegetation and canopy trees in recent years due to new residential development (including single and multi-dwelling development). As identified in Council’s Urban Biodiversity Strategy (2013-2023), it is important to continue the protection of significant habitat trees on public and private land.

7.2 Identification and Protection of Heritage Places

Heritage buildings and places contribute to the character of Boroondara and the community's sense of pride and connection to where they live. Identification and protection of heritage places will continue to be a key driver for housing outcomes over the next 15 years.

Council’s adopted Heritage Action Plan 2012 (HAP) provides the foundation for Council’s heritage work program. The HAP will be reviewed and updated as part of an ongoing monitoring and review of the HAP to ensure Council allocates resources to the most appropriate and ‘under threat’ areas across the municipality necessary assessments.

There is an opportunity for Council to give greater consideration to housing needs when establishing the future program of heritage assessments. Council will need to strike an appropriate balance between heritage and non-heritage places to ensure we continue to provide a range of housing options for future generations.

7.3 Continue to Encourage Housing in Commercial Areas

In recent years, a number of projects relating to Boroondara’s commercial areas have been completed and are now in effect.

It is now time to take stock of the planning controls we have and monitor built form outcomes in these areas. We also need to complete outstanding work, such as the Council’s review of the Camberwell Junction Structure Plan, preparation of built form controls for local shopping centres, and finalise implementation of the Glenferrie Road and Kew Junction structure plans.

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In the longer term there may also be opportunities to consider the rezoning of land within Commercial 2 Zone to facilitate housing in these areas.

7.4 Providing Housing that Meets the Needs of All Residents

Boroondara’s population is ageing. Many of today’s families with children will become couples only and lone person households over the next 15 years. Accordingly, the most significant change in household types between now and 2031 will come from lone person households (approx. 4,415 additional households) and couples without children (approx. 5,371 additional households), followed by couples with children.

Notwithstanding this, families with children are the largest household type in Boroondara, and family-friendly houses will continue to be the primary house type in Boroondara.

The forecasted demographic change is likely to generate greater demand for smaller housing options than at present. These smaller housing options typically include semi-detached houses, townhouses, flats and units.

The capacity analysis shows that there is sufficient capacity within the General Residential and Residential Growth Zone areas to accommodate such increased demand. However, Council needs to carefully monitor the operation of the new residential zones and the housing outcomes they deliver. This will allow Council to identify any gaps in the provision of housing and the need for zoning changes to respond to any changes in housing need and demand.

7.5 Providing the Right Housing in the Right Locations

Council’s approach to the application of the new residential zones provides a strong foundation for protecting the character of Boroondara’s residential areas. For the most part, the character-based approach to the application of the new residential zones has resulted in the GRZ or RGZ being applied to areas that have good access to public transport and retail and non-retail services. These areas are able to accommodate additional development without unduly impacting on the preferred character.

The NRZ has generally been applied to residential areas that are characterised by detached dwellings, or in areas that are not supported by public transport and other services. The NRZ has also been applied to areas close to public transport and services that have a strong and consistent character that warrants their inclusion in the NRZ, such as areas within existing heritage overlays that have a low level of non-contributory buildings within the heritage precinct.

However, some residential areas in Boroondara that are zoned NRZ and have excellent access to public transport and services, and are unconstrained by heritage or other restrictions. These areas could provide greater housing

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diversity, subject to further investigation and consultation with affected communities. In particular, this could include residential areas along main roads or close to public transport and medium to large commercial areas - which are defined as Activity Centres (Camberwell Junction, Kew Junction and Glenferrie), some Neighbourhood Shopping Centres19, and commercial corridors.

Furthermore, a high percentage of Ashburton, Balwyn, Balwyn North, Kew East and Glen Iris are zoned NRZ. In the long term, this could limit housing choice in these locations and lead to an inability for people to age in place. In the future, Council may need to look at these areas to ensure that they can provide a wide range of housing types to allow existing residents to find housing that suits their life stage.

Council also needs to monitor the housing outcomes in the short to medium term to understand the types of planning applications being considered and buildings constructed to understand if the new residential zones are delivering the right housing outcomes in the right locations.

The need for housing diversity also needs to be considered in conjunction with the capacity and functions of key infrastructure and services, such as roads, sewerage, drainage, public services and public transport. If these services cannot sustain additional population in the area it would be unsustainable to increase densities in these locations until the necessary infrastructure can support the change.

19 Neighbourhood shopping centres that typically offer a wide range of services and already contain a mix of retail, commercial (other than retail) and residential uses; and are typically supported by tram routes and/or close to a train station. These centres are considered more capable of accommodating new services to support greater housing diversity in the surrounding area. Neighbourhood shopping centres that typically have a local convenience function and offer a limited range of services are not considered viable nodes to support greater housing diversity. Further investigation areas will be subject to Council’s endorsement.

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7.6 Improving the Quality of Housing in Boroondara

The City of Boroondara encourages high-quality design that respects the existing character, displays high-quality architecture and contributes positively to the urban environment20. However, the quality and design of new housing remains an important issue to Council and the community.

Medium density residential development such as townhouses, units and villas is regulated under Clause 55 of the Boroondara Planning Scheme (ResCode). Ongoing monitoring of planning permit applications will determine whether any variations to residential zone schedules may be required in the future to improve amenity standards for dwellings.

In addition, the lack of measurable standards in the Victorian planning system for high-density residential, student accommodation and mixed-use development has resulted in some less than satisfactory design outcomes in the past.

The City of Boroondara has experienced an increase in the number of high density dwellings of +31% (total increase of 1,469) between 2006 and 2011 in high density dwellings. Boroondara also has the fifth highest number of apartments in developments of four or more storeys between 2011 and 201421.

Council is also observing a highly concerning trend regarding the quality of apartment buildings - in particular with regards to the internal amenity for future residents.

Poorly designed apartments result in compromised living quality and dwellings that are not adaptable to future needs. Housing needs to meet the long term needs of occupants and the broader community.

Without a focus on the design quality of new apartments, there is a risk we will be creating homes in which no one wants to live and which are not flexible and adaptable for future residents.

Council undertook a review of 22 apartment developments between 2010 and 2014. The developments reviewed comprised a combined total of 1156 bedrooms in buildings ranging from 4 to 12 storeys in height. This detailed analysis has identified the following key issues and trends:

20 The Boroondara Urban Design Awards recognise high quality design in various categories. The 2014 categories included "best small-medium scale multi dwelling residential development", "best heritage conservation, additions and alterations", "best institutional development", "best apartment/mixed-use development" and "best commercial/office development".

21 Better Apartments - A Discussion Paper, Department of Environment, Land, Water & Planning and Office of the Victorian Government Architect, May 2015.

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• Lack of genuine mix of dwellings with a predominance of one (49%) and two (48%) bedroom apartments. • A significant under-provision of more adaptable and family-friendly 3+ bedroom apartments (<3%). • Significant variation in apartment sizes with some 1 bedroom apartments as small as 37m2 and others 80+m2 and two bedroom apartments ranging from 45m2 to 156m2. • Average sizes of 1 and 2 bedroom apartments are below what is recommended in other jurisdictions such as the NSW Residential Flat Design Code. • Predominance of single aspect apartments (68%) and missed opportunities to make use of dual orientation in some instances. • A majority (88%) of bedrooms having direct daylight access with only a small number relying on borrowed light (4%) or light courts (8%).

The analysis shows significant variation across developments which highlights that:

• good internal design and amenity depend on the willingness of the developer to deliver such outcomes and/or on Council officers’ ability to negotiate better outcomes. • the current assessment and decision making framework does not provide the tools required to deliver good internal design outcomes on a consistent basis.

The planning system is primarily focussed on the external appearance of apartment developments, their interface with adjoining public areas and - to a lesser extent - their impacts on adjoining properties. There is an urgent need for a framework that delivers consistent and improved development outcomes.

The Victorian Government is currently investigating the need for state-wide apartment design standards and has recently undertaken a consultation process with local councils, the community and other industry stakeholders.

Council supports the development of state-wide design standards that would improve the quality of apartment development (including accommodation for students) for greater enjoyment by future occupants, adjoining property owners/occupiers and the broader community. The state-wide approach is preferable to relying on individual councils to prepare locally-specific controls to manage this issue. Should the Victorian Government ultimately decide not to introduce state-wide apartment design standards, Council can investigate the need for local controls to deal with the apartment deficiencies specific to Boroondara.

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7.7 Improving the Environmental Performance of Housing

With housing making up the majority of development within the City of Boroondara, it is important to consider its environmental impact.

Currently, there is limited guidance provided in State and Local Planning Policy with regard to sustainable development. A number of other municipalities have adopted Environmentally Sustainable Design (ESD) policies and strategies that aim to deliver a sustainable built environment through a range of tools.

Matters that should be covered in an ESD policy include ensuring that housing is designed to minimise energy and water use and to ensure that new housing provides a suitable level of indoor quality.

Boroondara has developed a Sustainable Buildings Policy which sets out Council's commitments to achieving greater sustainability in the way its buildings are designed, built and used.

Council is in a position to provide leadership in promoting environmentally sustainable design in new and existing housing, consistent with increasing awareness across Australia that climate change and other environmental risks must be an important consideration when deliberating on a development.

Council will advocate to the Victorian Government to provide a suite of ESD guidelines that apply to all developments throughout the state, to ensure that there is uniform consideration of ESD matters and suitable minimum standards for housing. This should preferably be done under the building regulations, or alternatively through the Victorian Planning Provisions.

Council should also investigate the benefits of becoming a full financial member of Council Alliance for a Sustainable Built Environment (CASBE), or a similar organisation. CASBE comprises a group of Council committed to the creation of sustainable built environments. Council is currently part of CASBE but is not a full financial member. Becoming a financial member of CASBE would give Council access to additional training and other resources.

Alternatively, an ESD policy could be investigated and prepared for the City of Boroondara to improve the sustainability of development within Boroondara. This policy would be incorporated into the Boroondara Planning Scheme and would assist Council in providing clarity and guidance for the consideration of development applications.

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7.8 Housing Affordability

In 2013, Boroondara had a median house price of $1,410,000 and a median unit price of $600,000. Boroondara’s median house price has increased by nearly $90,000 since 2011 ($1,321,808), and by over $458,000 since 2006 ($951,299)22. In 2015, all suburbs in Boroondara had a medium house prices in excess of $1,000,000.

While price and vacancy rates will change over time, it is likely that private property in Boroondara will remain unaffordable to low income earners. Social housing, therefore, provides a crucial housing option for these residents.

Council has limited capacity to influence housing affordability in Boroondara. Council primarily manages housing development through the Boroondara Planning Scheme through the application of zones and overlays. The impact on property values from applying these planning controls is not a consideration used in decision-making from a planning point of view. There may be consequential price movements up or down from applying planning controls, and this is something that will be monitored overtime in the consideration of the distribution of zones in the future.

The availability and direct provision of social housing is also outside Council’s role and sphere of influence. These matters are determined, in the most part, by Victorian and Australian Government funding schemes and housing policies, and by market forces. The City of Boroondara does not offer financial subsidies or assets for the development of social housing as this housing is the responsibility of other levels of government. Council does, however, play a very active role in advocating to other levels of government for social housing for those most in need.

Council will advocate to the Victorian Government to take initiatives to explore various planning mechanisms to support affordable and social housing in appropriate locations, including applying “inclusionary zoning” to land owned by the Victorian Government and all designated urban renewal areas. This mechanism mandates a stated percentage of housing within a development must be sold or rented below market rate and helps to support the development of social and affordable housing.

22 Housing in Victoria custom report (http://www.housinginvictoria.com.au)

64 Boroondara Housing Strategy (December 2015)

8 Housing Objectives and Strategies

8.1 Protect the Character of Boroondara’s Residential Areas

Objective 1.1

Ensure new development retains and enhances the key character attributes that contribute to a precinct’s preferred character.

Strategies

• Apply mandatory height controls in residential areas where appropriate to protect preferred neighbourhood character. • Ensure all planning permit applications for development in residential areas achieve the preferred character outcomes and design guidelines in the relevant Neighbourhood Character Precinct Statements. • Ensure the preferred character outcome is provided along contiguous sections of a street. • Consider if a change of preferred character is warranted (in local residential streets proximate to medium to large commercial areas23 and public transport) to deliver housing diversity outcomes. • Direct and encourage new housing to locate in Boroondara’s commercial areas, neighbourhood shopping centres and along key main roads.

Further strategic work

Short term (1 to 3 years)

• Update Clause 22.07 Neighbourhood Character Policy to better reflect the adopted Neighbourhood Character Precinct Statements and recently introduced new residential zones. • Review the content of the Neighbourhood Character Precinct Statements in conjunction with the preparation of an updated Clause 22.07.

23 Medium to large commercial areas are defined as Activity Centres (Camberwell Junction, Kew Junction and Glenferrie), commercial corridors, and Neighbourhood shopping centres that typically offer a wide range of services and already contain a mix of retail, commercial (other than retail) and residential uses; and are typically supported by tram routes and/or close to a train station. These centres are considered more capable of accommodating new services to support greater housing diversity in the surrounding area. Neighbourhood shopping centres that typically have a local convenience function and offer a limited range of services are not considered viable nodes to support greater housing diversity. Further investigation areas will be subject to Council’s endorsement.

65 Boroondara Housing Strategy (December 2015)

• Monitor planning permit approvals to understand how the new zones and Neighbourhood Character Precinct Statements are functioning and if they are delivering the outcomes anticipated by the new residential zones and Neighbourhood Character Precinct Statements. • Undertake the review of the appropriateness of the residential zones in Precinct 74 and Precinct 24 and the respective Neighbourhood Character Precinct Statements in accordance with Council’s resolution on 11 December 2014.

Medium term (3 to 6 years)

• Following the completion of the planning permit approvals review, investigate if Council should vary any schedules to the residential zones or apply new planning overlays to provide requirements on dwelling setbacks, private open space, site coverage etc. in order to ensure the preferred neighbourhood character objectives in the Neighbourhood Character Precinct Statements are being achieved.

Objective 1.2

Ensure continued identification and protection of places of heritage significance and ongoing assessment of possible heritage places.

Strategies

• Continue to investigate and assess possible heritage places in the City of Boroondara in accordance with the adopted Heritage Action Plan (HAP, 2012) or any updated version of the HAP.

Further strategic work

Short term (1 to 3 years)

• Review the priorities of the Heritage Action Plan 2012. • Review and update the use of/properties on Council’s Possible Heritage List to improve the value and function of this list.

Ongoing

Continue to undertake heritage assessments for areas not included in a Heritage Overlay in accordance with the adopted Boroondara Heritage Action Plan.

• Continue to seek interim heritage controls for individually significance heritage buildings on Council’s Possible Heritage List.

66 Boroondara Housing Strategy (December 2015)

8.2 Provide Housing that Meets the Needs of All Residents

Objective 2.1

Ensure the provision of a diverse range of housing.

Strategies

Further strategic work

Short term (1 to 3 years)

• Monitor planning permit approvals to understand how the new residential zones are functioning in specified locations (by suburb) and broadly around the municipality to determine if they are delivering the housing outcomes anticipated by the new residential zones. • Monitor planning permit approval for mixed used developments containing dwellings within commercial areas to understand the types and mix of housing being accommodated in the commercial centres.

67 Boroondara Housing Strategy (December 2015)

8.3 Encourage Housing Diversity in Appropriate Locations

Objective 3.1

Ensure new multi-dwelling developments in the Neighbourhood and General Residential Zones reinforce a precinct’s preferred character.

Strategies

Further strategic work

Short term (1 to 3 years)

• Develop a set of principles that provide a holistic approach to the treatment of main roads and GRZ5 areas in Boroondara. Apply alternative zones if appropriate and update the relevant Neighbourhood Character Precinct Statements accordingly.

Short to medium term (2 to 4 years)

• Investigate if a multi-storey residential design policy should be introduced into the Boroondara Planning Scheme to encourage greater housing diversity within new residential and mixed-use developments.

68 Boroondara Housing Strategy (December 2015)

Objective 3.2

Support greater housing diversity in areas with better access to services and public transport.

Strategies

• Support housing diversity along main roads (excluding areas subject to Heritage Overlays and other restrictions) that are proximate24 to medium to large commercial areas and public transport. • Consider greater housing diversity in local residential streets (excluding areas subject to Heritage Overlays and other restrictions) that are proximate to medium to large commercial areas and fixed public transport. • In areas where greater housing diversity is supported the following should be considered when deciding what alternative zone could be applied: o The size and function of the closest commercial area. o The height limit that applies to the closest commercial area. o The scale and use of surrounding properties. o The residential zone applied to all or part of the road. o Housing diversity in that part of the municipality. • Facilitate housing diversity in all suburbs and consider whether an alternative zone could be applied to areas with relatively lower housing diversity (when compared with other Boroondara suburbs). • Continue to advocate to the Victorian Government in the provision and upgrading of key infrastructure in the municipality such as public transport facilities, arterial roads and Melbourne Water managed drainage and sewage systems.

Further strategic work

Short term (1 to 3 years)

24 Further investigations of appropriate areas may be required in the event that the Victorian Government requests local Councils to investigate actions (including a direction to review the residential zones) to achieve the objectives identified in the metropolitan planning strategy Plan Melbourne. This includes a direction to create a city of 20-minute neighbourhoods and a short term action to update the State Planning Policy Framework to reflect this direction. The Victorian Government considers that creating a city of 20-minute neighbourhoods would facilitate a diversity of housing choices and support the vibrancy of the local shopping centres. Ultimately, it may be that no further investigation will be required. However, should there be a need for housing diversity, the further investigation areas will be determined at the discretion of Council.

69 Boroondara Housing Strategy (December 2015)

Short to medium term (2 to 4 years)

• Investigate if modifications to the current mix of zones are needed to meet future housing needs, and develop a set of principles to guide where housing diversity could be encouraged. • Investigate if any main roads, that are not zoned GRZ5 and are in areas where greater housing diversity is encouraged, should be rezoned to meet future housing needs in Boroondara and the available capacity of existing infrastructure.

Objective 3.3

Ensure Boroondara’s commercial areas continue to provide for a dynamic mix of retail, commercial (other than retail) and residential uses.

Strategies

• Encourage a diverse range of housing in Boroondara’s commercial areas, including housing for a range of household types.

Further strategic work

Short term (1 to 3 years)

• Complete the Camberwell Junction Structure Plan review. • Implement the Glenferrie and Kew Junction structure plans. • Commence the preparation of built form guidelines for local shopping centres.

Short to medium term (2 to 4 years)

• Monitor planning permit application requests and approvals to understand the types of applications that are being received for new dwellings in commercially zoned land. • Investigate if a multi-storey residential design policy should be introduced into the Boroondara Planning Scheme to encourage greater housing diversity within new residential and mixed-use developments.

Medium term (3 to 6 years)

• Investigate the introduction of a Development Contributions Policy or Overlay in the Boroondara Planning Scheme to allow for a levy on development to support the provision of new and upgraded infrastructure.

70 Boroondara Housing Strategy (December 2015)

Long term (6+ years)

• Investigate if any areas within the Commercial 2 Zone should be rezoned to allow for residential development. • Investigate removal of the Public Acquisition Overlay from commercial land such as Canterbury Road.

Objective 3.4

Encourage the use of under-utilised government landholding for housing (excluding land identified in the Boroondara Open Space Strategy as open space).

Strategies

• Advocate to the Victorian Government to explore various planning mechanisms to support affordable housing in appropriate locations, such as applying “inclusionary zoning” to land owned by the Victorian Government and all designated urban renewal areas. • Advocate to the Victorian Government to develop underutilised Victorian Government land holding (e.g unused Victrack landholdings) for affordable and/or social housing where appropriate (excluding land identified in the Boroondara Open Space Strategy as open space).

Further strategic work

Short term (1 to 3 years)

• Undertake a review of Victorian Government landholdings within the City of Boroondara.

71 Boroondara Housing Strategy (December 2015)

8.4 Improve the Design Standards of New Housing

Objective 4.1

Encourage high quality residential design.

Strategies

Further strategic work

Short term (1 to 3 years)

• Continue to advocate for a Victorian Apartment Design Standards.

72 Boroondara Housing Strategy (December 2015)

• Review Clause 22.12 to the Boroondara Planning Scheme - Neighbourhood Centres and Enterprise Corridors Urban Design Policy and consider whether this policy can be applied to developments within a residential zone.

Short to medium term (2 to 4 years)

• If a statewide apartment design standards have not been introduced in the Victorian Planning Provisions, investigate and prepare a local planning policy to introduce measurable apartment design standards into the Boroondara planning scheme. • Monitor and review planning permit approvals for new medium density developments to ensure these developments provide residents with a high level of internal amenity.

Medium term (3 to 6 years)

• Review recent planning permit approvals for new student housing accommodation to gain a better understanding of the quality and issues Council may need to address through changes to the Boroondara Planning Scheme. • Investigate if any changes to zone schedules or new overlays are required to provide requirements on dwelling setbacks, private open space, site coverage etc. to achieve housing designs that are in keeping with the preferred neighbourhood character.

73 Boroondara Housing Strategy (December 2015)

8.5 Improve the Environmental Sustainability of New Residential Development

Objective 5.1

Advocate for new residential developments to incorporate environmentally sustainable practices into their design.

Strategies

Further strategic work

Ongoing

• Advocate for the preparation of Environmentally Sustainable Design (ESD) policy by the Victorian Government through the Building Regulations or the Victorian Planning Provisions.

Short to medium term (2 to 4 years)

• Develop an Environmentally Sustainable Design (ESD) local planning policy to improve the sustainability of new housing for local circumstances (Boroondara), if the Victorian Government has not implemented a state wide approach. • Investigate the value of becoming a financial member of CASBE, or other similar organisation.

74 Boroondara Housing Strategy (December 2015)

9 References

City of Boroondara Community Profile, .id Consulting (2015)

City of Boroondara Population Forecasts, .id Consulting (2015)

Boroondara Housing Capacity Analysis, SGS Economics and Planning (2015)

Boroondara City Council, 2011 Housing Preferences Survey, July 2011, Metropolis Research

Boroondara Neighbourhood Character Study - Stage 1 Consultation Report, October 2011, Collaborations

Neighbourhood Centres and Commercial Corridors Guidelines 2014, City of Boroondara

Neighbourhood Character Precinct Statements 2013, City of Boroondara

Neighbourhood Character Study and New Residential Zones: Methodology and Implementation report 2013, City of Boroondara

Our Boroondara, Our City Our Future, City of Boroondara (2008)

Appendix B. An excerpt of Council’s Submission to the Plan Melbourne Refresh Discussion Paper as relevant to housing

Adopted by the Urban Planning Special Committee on 14 December 2015

HOUSING The Discussion Paper foreshadows a significant change to managing housing provision across Melbourne. This section has the most substantial implications for Boroondara.

The key elements include the potential reintroduction of housing targets and development goals, and a focus on ‘unlocking’ housing supply in established areas. The MAC identifies increasing housing supply and diversity, especially in established areas as a key part of the Plan Melbourne Refresh.

THE BALANCE BETWEEN ESTABLISHED AND GROWTH AREA DEVELOPMENT The Discussion Paper establishes a different balance to housing growth between established and growth area development than Plan Melbourne, with an emphasis on the middle suburbs. The Discussion Paper sets the rationale for establishing a 70/30 housing target whilst also identifying planning tools and reforms to boost established area housing supply.

Options for Discussion Support Increase established area housing supply by one or more of: Establishing a 70/30 target where established areas provide 70 per cent of No Melbourne’s new housing supply and greenfield growth areas provide 30 per cent. Investigate a mechanism to manage the sequence and density of the remaining Yes Precinct Structure Plans based on land supply needs. Focus metropolitan planning on unlocking housing supply in established areas, Partly particularly within areas specifically targeted for growth and intensification. Identify planning tools and reforms to boost established area housing supply. No

Establishing a 70/30 housing target

Council supports the intention of reducing the amount of land being redeveloped on the urban fringe from a sustainability point of view. However, Council is concerned that the proposed 70/30 housing target and a revised Plan Melbourne could be used by the Minister for Planning to weaken the planning controls currently operating in the Boroondara Planning Scheme. Council will continue to defend its position on its residential zones with regard to new dwelling approvals, future dwelling demand, dwelling capacity and neighbourhood character.

Council does not support the proposed 70/30 housing target outlined in the Discussion Paper, particularly noting that the Discussion Paper identifies the middle ring suburbs as being a focus for the 70/30 target. The Discussion Paper seeks to justify the middle suburbs providing a higher proportion of new housing by stating that “Due to their activity centre networks, access to jobs and existing infrastructure the middle suburbs are seen as ideally positioned to support greater housing supply.” This is overly simplistic and ignores local circumstances in Boroondara around neighbourhood character protection, and is not supported by Council. There is no mention of neighbourhood character or any recognition of the residential amenity which residents of Boroondara recognise, value and wish to maintain for future generations.

The proposed housing target ignores the expectations which Boroondara has around the quality of new development. Importantly though, it makes broad based assumptions around the capacity of existing infrastructure in established areas such as Boroondara to support such intensification. In many instances, local development and social infrastructure already operates at or above capacity. Further, increasing development within these areas will only exacerbate the situation. Established area councils therefore require better infrastructure funding mechanisms to meet increasing demand and renewal of infrastructure assets.

The Minister for Planning has not committed to providing a simplified and easier to implement development contributions framework for established suburbs despite infrastructure being at capacity and the Minister for Local Government introducing rate capping. The current process for introducing a Development Contributions Plan into an established municipality to assist with meeting the costs of increased infrastructure demand is onerous and inefficient. Established municipalities have limited financial capacity to support current infrastructure demands let alone increased future demand.

This failure and unwillingness by successive Victorian State Governments to establish better infrastructure funding measures will detrimentally affect the ability of established municipalities such as Boroondara to upgrade ageing infrastructure to cope with the imposition of a possible 70/30 housing target. This will be made worse by the current Victorian Government’s decision to introduce rate capping.

Council also refutes the claim being made in the Discussion Paper that Melbourne’s middle ring suburbs are accommodating a steadily increasing share of Melbourne’s housing growth - from 25% of building approvals in 2002 to 40% in 2014. This is on the basis of Footnote 6 in the Discussion Paper which states “This is an indicative measure of change in middle suburbs as building approvals include knock down and rebuild developments and therefore not necessarily net additional dwellings. While knock down rebuilds distort the data, overall, new supply has increased in middle suburbs.” In other words, the Discussion Paper cannot readily point to any data which suggests that new dwelling supply in the middle suburbs has increased to a level which can justify a 70/30 target or sub-regional or municipal wide housing targets more generally. Further, the Discussion Paper notes that Melbourne 2030 aspired to a (roughly) 70/30 housing target, but (at best) Melbourne is being planned on the basis of 61% of new dwellings being located in established areas to 2051 under Victoria in Future 2015.

The Discussion Paper does not sufficiently recognise the role of regional cities in supporting greater population growth. Recommendation 75 in Appendix A to the Discussion Paper mentions that Geelong should be designated as Victoria’s second city but this is noted as part of ‘changes to be incorporated’ in the revised Plan Melbourne. Geelong, Ballarat, Bendigo and the towns of the La Trobe Valley could play a major role in absorbing increased population. Higher population and housing densities are already being sought in these locations, and infrastructure and services are being improved including transport, hospitals and schools.

Council does not believe the MAC or the Minister for Planning has strategically justified the imposition of a 70/30 housing target.

Managing the sequencing and density of remaining PSPs

Council is supportive of investigating a mechanism to improve land sequencing and density in the remaining Precinct Structure Planning areas based on land supply needs. This concern is created by land banking on the urban fringe, high infrastructure servicing costs and delayed roll out of new housing stock to meet demand. It also creates pressure on the established suburbs to accommodate housing demand where infrastructure coordination and upgrades are equally as challenging and demand for housing is high.

Unlocking housing supply in established areas, particularly within areas specifically targeted for growth and intensification.

Council offers partial support for this option. Council does not support a blanket position of ‘unlocking of housing supply in established suburbs’ but does support focussing new housing within areas targeted for growth and intensification. Council recognises that the activity centres of Camberwell Junction, Kew Junction and Glenferrie have a role to play in providing for diverse housing types.

In addition, there are larger sites available outside established suburban areas that have the potential to provide for substantial housing. Council has identified various strategic sites, areas and precincts which could accommodate higher density housing. Table 1 provides a summary of key sites and precincts which have been foreshadowed as providing for significant new dwelling supply. Over 552,100 new dwellings are expected to be provided in these areas, accounting for substantial dwelling need.

Table 1: Dwelling yields - Strategic sites, centres and precincts (rounded)

Forecast Additional dwelling yield Information source year Strategic sites and precincts No fixed City of Melbourne: Future Living Discussion Arden-Macaulay 9,500 year Paper; p. 13 No fixed City of Melbourne: Future Living Discussion City North 5,000 year Paper; p. 13 No fixed City of Melbourne: Future Living Discussion E-gate 6,000 year Paper; p. 13 No fixed Fishermans Bend 40,000 40+ year plan; FBURA Strategic Framework Plan year No fixed City of Melbourne: Future Living Discussion Melbourne CBD 10,500 year Paper; p. 13 No fixed City of Melbourne: Future Living Discussion Melbourne Docklands 5,500 year Paper; p. 13 No fixed City of Melbourne: Future Living Discussion Southbank 42,000 year Paper; p. 13 Sub-total 118,500 Nominated centres in Plan Melbourne Box Hill Transit City Structure Plan; June 2007. Box Hill 2,050 Unknown Range 1,400-2,700 new dwellings Broadmeadows Structure Plan; June 2012. Covers Broadmeadows 6,500 2031 whole Broadmeadows Activities Area. Dandenong Urban Master Plan Summary. Dandenong 4,000 2026 Forecast over ‘next 15-20 years.’ Epping Transit City Structure Plan. Range 2,000- Epping 3,250 2030 4,500 new dwellings Footscray 7,000 2031 Footscray Structure Plan; March 2014 Fountain Gate – Narre Warren CBD Development Fountain Gate/Narre Warren 1,000 2033 Contributions Plan Frankston Metropolitan Activity Centre Structure Frankston 1,150 2031 Plan. Range 700-1,600 new dwellings Ringwood 5,800 2031 ringwoodgoingplaces.com.au Sunshine 2,850 2021 Sunshine Town Centre Structure Plan Sub-total 33,600 Growth Corridors No fixed Metropolitan Planning Authority. Defined as Growth Corridors1 400,000 year demand in PSP areas. Total 552,100

Council is particularly concerned and disappointed with the failure of the Discussion Paper to adequately address the important role which Places Victoria and other agencies should be playing in catalysing urban renewal on brownfield land. The Discussion Paper does not recognise the Urban

1 Growth Corridors include the Metropolitan Activity Centres of Toolern and Lockerbie

Renewal Authority Act 2003 and its powers to declare project areas, compulsorily acquire land and capture land value uplifts in the process. Places Victoria has the ability to capture the land value uplifts of these planning initiatives and reinvest the funds back into the area through initiatives that might catalyse urban renewal and private investment.

Many sites in the inner western and northern suburbs have planning frameworks and (in some cases) planning permits in place to deliver new housing supply. However, these projects have not been ‘unlocked’ for many years despite the best efforts of the local councils to put the necessary planning frameworks in place.

The Victorian State Government could play a major role through an enhanced Places Victoria to coordinate the infrastructure investment needed or to use its powers under the Urban Renewal Victoria Act 2003 to declare project areas, compulsorily acquire land and begin delivering projects. These projects would make meaningful contributions to new housing supply in areas where new housing supply and liveability enhancements are desirable. On this basis, Council considers that the Discussion Paper lacks vision and is simplistic in its directions around new housing development, with a focus mostly on the role and limitations of the current planning system.

In its current operation, Places Victoria is under-resourced and ill-equipped with the skills and experience needed to implement its legislative mandate with regard to brownfield sites. Further, there is ongoing uncertainty over the role of Major Projects Victoria, Infrastructure Victoria and the Metropolitan/Victorian Planning Authority in planning and delivering new housing supply in established areas. The Victorian State Government should bear some of the responsibility for driving new housing supply through its own institutions and legislative frameworks on key sites and precincts. The Discussion Paper reflects the persistent reliance of the Victorian State Government on the planning system to facilitate private investment and market-led development outcomes, as opposed to initiating and leading strategic projects through its own institutions.

Identify planning tools and reforms to boost established area housing supply

Council does not support the final option for discussion which states “Identify planning tools and reforms to boost established area housing supply.” The Discussion Paper provides minimal elaboration apart from “lot consolidation incentives, reforms to the planning scheme amendment process and codified planning processes” which in themselves are generic theories which have been thrown around in planning discourse for many years.

Council does not support the introduction of a codified planning process. The Boroondara community has an expectation that it will be involved in the planning process and maintain its rights to provide input into planning permit applications including standard third party appeal processes.

Minimal detail is provided on ‘lot consolidation incentives’ and reforming the planning scheme amendment process.’ Lot consolidation is understandable in activity centres but is not supported in established residential areas. Lot consolidation in established residential areas could undermine neighbourhood character objectives.

Given that the Discussion Paper lacks sufficient detail on reforming the planning scheme amendment process, Council suggests the following changes:

 Removal of the need for authorisation to prepare and exhibit planning scheme amendments. This step adds unnecessary time to the amendment process.  A comprehensive review of Planning Panels Victoria in light of the excessive costs of panel hearings being borne by local councils and a lack of accountability in the advice of Panel members set out in panel reports. Previous panel recommendations are often cited during panel hearings as justification for why another Council should take a particular course of action. This discredits the legitimate strategic work undertaken by local councils and fails to recognise whether the Minister for Planning ultimately accepted that advice in the approval of an amendment or not. In cases where a local council or the Minister for Planning has not accepted the recommendations of a Panel, that Panel recommendation should be discounted from future decision-making processes.

To improve accountability, Panel members should hold a subsequent Hearing where their recommendations are tabled and discussed. Those who were party to the original panel hearing should be allowed to attend and ask questions of the Panel members. This would ensure that any misunderstandings are addressed, and recommendations are altered accordingly. The cost of this forum should be borne by Planning Panels Victoria. This process is considered necessary to improve accountability, recognising the excessive costs being incurred by councils to fund panel hearings.  Enforcing accountability within the Department of Environment, Land, Water and Planning around compliance with Ministerial Direction 15 ensuring approval of adopted planning scheme amendments within 40 days of lodgement with the Minister for Planning.

Council reserves its position to provide a response to any proposed reforms as more detail is provided by the Minister for Planning.

POPULATION GROWTH AND HOUSING This section of the Discussion Paper describes the basis for the creation of sub-regional housing targets. This is based on a specific recommendation made by the MAC in their 2015 review report of Plan Melbourne. It also discusses the experience of housing targets elsewhere and proposes the completion of a Metropolitan Housing Strategy.

Options for Discussion Support Better define and communicate Melbourne’s housing needs by either: No Setting housing targets for metropolitan Melbourne and each sub-region relating to housing diversity, supply and affordability.

Developing a metropolitan Housing Strategy that includes a Housing Plan which: Yes • Identifies preferred housing outcomes (rather than targets) • Specifies key Victorian and local government actions • Includes preferred housing scenarios for sub-regions and defined locations.

Setting housing targets for metropolitan Melbourne and each sub-region relating to housing diversity, supply and affordability

Council and the Boroondara community have long objected to the imposition of sub-regional and municipal wide housing targets by the Victorian State Government for the following reasons:

 Housing targets ignore locally significant attributes such as neighbourhood character as a basis for determining the quantum, location and type of new housing provision. Council used neighbourhood character as the strategic basis for the application of the new residential zones into Boroondara, not a State or Local Government devised housing target.  Council is unclear how a housing target would be enforced in day-to-day decision making, if a housing target should carry greater weight in decision-making, and what the decision-making process should be if the housing target is or is not met over a given time period.  Housing targets are vague in their preparation and application. A housing target could be measured in the quantum of new dwellings approved or constructed. The role of Council is to consider planning permit applications for multi-unit development. Council has no influence over whether approvals are acted on by landowners and therefore whether a planning approval ultimately results in more housing supply in support of a housing target. The achievement of a housing target by way of new dwelling approvals means very little if the dwellings are not ultimately developed, thereby contributing to new dwelling supply.  Council does not consider individual planning permit applications from the perspective of new dwelling yield and the impact this has on housing supply. Council assesses planning permit applications using the provisions of the Boroondara Planning Scheme including ResCode and local planning policies. This is a performance based approach which has regard to development opportunities versus off-site impacts. Council is unlikely to modify this approach given its emphasis on dwelling design and neighbourhood character issues, as opposed to dwelling yield. Further, the entire Victorian planning system predicates itself to this performance based approach. Dwelling targets will encourage the competing objective of facilitating development for development’s sake and without appropriate regard to local conditions.  Housing targets are a blunt instrument which does not consider the characteristics of the local housing market, wider goals of the community around issues such as aging in place, and broader housing demand and need.

Council does not agree that housing targets would encourage more ownership of sub-regional planning goals. This is because Council does not ultimately consider dwelling yield in its assessment of planning permit applications. It would not matter if a housing target was devised voluntarily at the sub-regional level, if a development being proposed was inconsistent with the provisions of the Planning Scheme.

Developing a metropolitan Housing Strategy

Council accepts there may be a need for a metropolitan Housing Strategy to deal with the challenges around housing demand and supply issues. Council would welcome the opportunity to be involved in the preparation of a metropolitan Housing Strategy, if the opportunity arose. The three points mentioned within this option appear reasonable, including:

 Identifying preferred housing outcomes (rather than targets)

 Specifying key Victorian and local government actions  Preferred housing scenarios for sub-regions and defined locations.

This approach has the potential to be more collaborative between the Victorian State Government and the local government sector in line with the principle of partnership at section 2.9 of the Discussion Paper. Council already sets out preferred housing outcomes in its adopted Neighbourhood Character Precinct Statements and structure plans and policies, and would be prepared to contribute these expected outcomes to a wider forum.

Council has previously been involved in the eastern sub-regional planning group and could continue this involvement around the formulation of housing scenarios at the sub-regional level and within defined locations. However, Council will not support the imposition of sub-regional housing scenarios into its decision-making processes that do not suit local circumstances. Council has its own expectations around housing development outcomes as communicated through adopted strategic work such as the Neighbourhood Character Precinct Statements, the Neighbourhood Shopping Centres and Commercial Corridors Guidelines (2014) and various activity centre structure plans. These expected housing outcomes reflect local circumstances and have been adopted by Council.

CLARIFY LOCATIONS THAT SUPPORT POPULATION GROWTH AND NEW HOUSING This section seeks to resolve a perceived tension between providing policy guidance around future residential change and ‘protect the suburbs.’ The Discussion Paper proposes to resolve this tension by providing clarity around development expectations with regard to supporting increased densities in ‘defined locations’ with planning controls generally favouring change and increased densities in these locations. It appears to narrow the scope of ‘protection’ to specific areas such as heritage precincts or other existing values that require protection.

Options for Discussion Support Introduce a policy statement in Plan Melbourne 2016: Partly • To support population and housing growth in defined locations • That acknowledges that some areas within defined locations will require planning protection based on their valued character. Clarify the direction to ‘protect the suburbs’ No

The Discussion Paper provides no definition of ‘defined locations.’ However, the implementation of the new residential zones in Boroondara focusses new housing development into what Council considers ‘defined locations.’ This includes the Commercial 1 Zone and the Residential Growth Zone. Council clarified these defined locations through the preparation of the Neighbourhood Character Precinct Statements and Amendment C190.

Council will oppose any attempt by the Minister for Planning to undermine Council’s residential zones where this seeks to make available other areas for dwelling intensification. Council’s Neighbourhood Character Precinct Statements were prepared following a 2 year consultation process, including public hearings. Council used this study as a basis for translating the residential zones into the Boroondara Planning Scheme because neighbourhood character is a key principle for decision-making on new housing development in Boroondara.

Clarify the direction to ‘protect the suburbs’

The rebalancing of objectives away from ‘protect the suburbs’ is not supported. The protection of Boroondara’s suburbs from inappropriate development is a primary objective of the Boroondara Planning Scheme. A statement that suggests that planning controls favour increased housing densities could see the erosion of valued neighbourhood character and heritage in favour of new housing. For example, Council has already seen a planning approval granted by VCAT to demolish an individually significant heritage dwelling to accommodate a low-rise apartment building on the basis of proximity to public transport and an activity centre, even though these are not considerations within the Heritage Overlay. This simplistic approach to housing development could be perpetuated with a shift away from protecting the suburbs towards development facilitation.

HOUSING DIVERSITY This section discusses why housing diversity is relevant and also sets out the barriers and opportunities for achieving housing diversity across Melbourne. The Discussion Paper notes that housing diversity matters from the perspectives of housing choice, downsizing, price competitiveness, supporting activity centre vitality, and supporting wider urban consolidation objectives.

The Discussion Paper links the attainment of housing diversity goals with the residential zones, renewal and design. Each will be discussed in turn.

What is the role of the Reformed Residential Zones in delivering diversity?

Options for Discussion Support Clarify the action to apply the Neighbourhood Residential Zone to at least 50 per cent of residential land by:  Deleting the action and replacing it with a direction that clarifies how Partly the residential zones should be applied to respect valued character and deliver housing diversity.  Retain at least 50 per cent as a guide but expand the criteria to be applied in No variations between municipalities.

Council accepts that housing diversity is an important element of planning and recognises that Boroondara should provide for diverse housing types whilst protecting neighbourhood character. However, Council opposes the application of new ‘directions’ which would have the effect of winding back the Neighbourhood Residential Zone based on new criteria that have not been released for comment in the Discussion Paper.

In principle, Council does not oppose the removal of the guideline to include at least 50% of residential zoned land in the Neighbourhood Residential Zone in metropolitan Melbourne. Applying the zones purely based on an arbitrary % figure does not represent proper strategic planning and cannot be justified.

However, Council is concerned that the removal of this guideline could be used as a back-door to target municipalities such as Boroondara that have more than 50% of land within the NRZ to potentially reduce the amount based on a set of unknown criteria.

Each Council had the opportunity to apply the reformed residential zones to suit the local circumstances using the criteria set out in the various practice and advisory notes. This resulted in some local government areas having more and some less than 50% of land in the Neighbourhood Residential Zone. In accordance with the relevant practice and advisory notes, Council used the protection of the established neighbourhood character as the strategic basis for the new residential zones. This resulted in more than 50% of residential land being included in the Neighbourhood Residential Zone, thereby contributing to Plan Melbourne’s Strategic Direction 4.2 - Protect Melbourne and its suburbs from inappropriate development.

At the recent Plan Melbourne Refresh local government workshop for the eastern region, representatives from the Department of Environment, Land, Water and Planning advised that approximately 20% of residential land within metropolitan Melbourne is within the Neighbourhood Residential Zone. It was also noted that 36% of residential land in the eastern region is in the Neighbourhood Residential Zone.

These figures clearly demonstrate that there is no need to review the application and distribution of the new residential zones at the municipal level - particularly the Neighbourhood Residential Zone. It is evident that across metropolitan Melbourne, there is an appropriate mix of the new residential zones to allow for a diversity of housing to occur, and well below the 50% Neighbourhood Residential Zone benchmark. This indicates that from a broader perspective, the application of the new residential zones has not been conservative or ad-hoc, instead implemented relative to local circumstances.

As noted above, Council applied the new residential zones based on neighbourhood character considerations and did not consider the percentage share of land in each zone, including the 50% Neighbourhood Residential Zone guideline. Issues around the percentage of land in each of the proposed residential zones was only raised by the former Minister for Planning after Council had lodged its section 20 (4) amendment request (Amendment C190) to implement the new residential zones into the Boroondara Planning Scheme. This had not been part of any prior discussions with the Minister for Planning.

Following Council’s lodgement of Amendment C190, discussions with the former Minister for Planning shifted away from the merits of Amendment C190, based on neighbourhood character, to become about dwelling capacity and the percentages of land in each residential zone. Whilst Amendment C190 was approved, the confusion perpetuated by the former Minister for Planning led to Amendment C199 and the consideration of an additional 1.7% of residential land for the Residential Growth Zone (RGZ) by the Residential Zones Standing Advisory Committee (RZSAC).

The RZSAC ultimately recommended that the additional land nominated for the RGZ that was already zoned NRZ3 under Amendment C190, be rezoned to the General Residential Zone - Schedule 5, after a two week long hearing. Land nominated by Council for consideration for the RGZ that was already in the GRZ, was ultimately retained in the GRZ.

Council was never convinced by the arguments put forward by the former Minister for Planning after lodgement of Amendment C190 that the residential zones should be implemented based on adhering to various percentages of land across the different residential zones. Further, Council remains committed in defending the residential zones as approved under Amendment C190. Council

10 considers that reviewing the implementation of the residential zones on the basis of the allocation of land areas within each zone would not be strategic, and is not supported by Council.

The options for discussion are not specific about whether it is sought to achieve housing diversity within a development, within a suburb, municipality or within the metropolitan area. Council believes the residential zones achieve sufficient housing diversity when all the residential zones are considered together with the Commercial 1 Zone. The Commercial 1 Zone applies to all of Boroondara’s activity centres, neighbourhood centres and local centres and to the Burwood/Camberwell Road Commercial Corridor. These areas provide opportunities for extensive housing diversity.

Council is concerned about the comment “The Victorian Government has committed to reviewing the application of the Reformed Residential Zones. This includes considering the process used to apply the zones in 2013/14 and the contents of the practice note.” Council provided a submission on the Technical Review of the Residential Zones but remains unclear what the terms of reference will be for a wider review of the zones. Council remains unconvinced about what any review of the previous process for implementing the zones in 2013/14 will show and what the Victorian State Government intends to do with any findings.

Greyfield renewal

The Discussion Paper defines greyfield land as residential areas which include building stock which is near or ending its physical life and land values make residential redevelopment attractive. The Discussion Paper suggests these areas are mostly characterised by ‘uncoordinated small scale infill development.’ It is expected that renewal of these areas may become more feasible and attractive as the city’s dwelling stock ages.

Options for Discussion Support Introduce a policy statement in Plan Melbourne 2016 supporting greyfield renewal and Partly investigate planning scheme mechanisms to achieve coordinated and sustainable renewal of established suburbs.

At the Plan Melbourne Refresh local government workshop, officers heard that the intention of identifying greyfield renewal areas was to reduce uncoordinated urban infill development occurring across the established suburbs. Officers heard that the intention of greyfield renewal areas would be to use a precinct approach where new housing supply can be targeted, and yields maximised in an efficient manner, thereby reducing pressure on the surrounding established suburbs. This could be done by way of an Urban Renewal Zone which allows a Government agency (such as Places Victoria or a local council) to capture land value uplifts from urban renewal activities, improve infrastructure coordination and deliver integrated land use planning. The uplifts can then be reinvested back into the urban renewal area to deliver further public benefits.

In principle, Council supports the creation of a policy position in a revised Plan Melbourne on greyfield renewal areas. Council recognises that there are areas within metropolitan Melbourne where the existing housing does not meet modern living standards and that redevelopment could occur at greater densities than currently exist.

However, Council is concerned about the specific details of how this would work. The following questions require clarification:

 How are greyfield renewal areas to be defined at the local level?  What are the obligations on local councils to identify these areas and proactively plan their redevelopment, or will these areas be identified by the Victorian State Government for consideration?  What is the extent of strategic analysis envisaged to plan for these areas and will assistance be provided by the Victorian State Government?  How would coordinated redevelopment be carried out?

Specifically, Council is unclear how large areas, possibly containing hundreds of individually owned and occupied properties, could be treated as a single precinct and redeveloped in a coordinated way. Not every land owner will want their land to be redeveloped. It is unclear how this approach would address the issue of uncoordinated infill development, without compulsory acquisition and compensation. Local councils would not be able to carry the cost of such redevelopment efforts. It seems that large, strategic redevelopment sites are most suited for such a State Government approach as discussed earlier in this section of the submission.

The identification and redevelopment of greyfield areas could also be a sensitive community issue. These are not brownfield areas that are currently vacant and underutilised, but established residential areas. In many instances people have lived in these areas for many decades, consider these places their ‘home’ and value their character. Residents have established strong connections to place and formed social networks. The Victorian State Government needs to tread carefully so not to be perceived as identifying ‘slums’ and embarking on a new ‘slum clearing’ program without regard to the local residents.

Promoting housing diversity through design

The Discussion Paper raises the possibility of investigating changes to the building and planning systems to facilitate adaptable housing as a way of increasing housing diversity.

Options for Discussion Support Include an action in Plan Melbourne 2016 to investigate how the building and planning Yes system can facilitate housing that readily adapts to the changing needs of households over the life of a dwelling.

This concept is supported to allow residents to retain their houses whilst progressing through the older years. The concept could be expanded to include the adaptive use of heritage houses and updating existing dwellings to improve environmentally sustainable development outcomes for individual dwellings.

AFFORDABLE HOUSING The Discussion Paper places considerable emphasis on creating mechanisms to increase the supply of affordable housing through the planning system. It builds on Plan Melbourne which had a focus on ‘facilitating’ social and affordable housing but with little detail on using the planning system to increase the supply of affordable housing. Inclusionary zoning is being considered as is the use of

12 development incentives for designated urban renewal precincts and areas to increase the supply of social and affordable housing.

Options for Discussion Support Affirm that the Minister for Planning should be the responsible authority for No social housing planning applications recommended by the Director of Housing (and include definitions of housing affordability and social and affordable housing in planning schemes). Introduce expedited planning approvals processes for selected social housing projects, No including modified third-party appeal rights. Consider introducing planning tools that mandate or facilitate or provide incentives Yes to increase social and affordable housing supply. Evaluate the pilot affordable housing initiative on land sold by government Yes to determine whether to extend this to other suitable land sold by government. Identify planning scheme requirements that could be waived or reduced without No compromising the amenity of social and affordable housing or neighbouring properties.

Council did not support amending the Victoria Planning Provisions to make the Minister for Planning the responsible authority for selected social housing planning permit applications that are recommended by the Director of Housing for priority consideration. Council consults with the local community when social housing permit applications are received in such a way to achieve an acceptable outcome for all parties. The loss of third party appeal rights is not supported. It is agreed that definitions of housing affordability and social and affordable housing would be useful in the Victoria Planning Provisions.

Changing planning controls to have a mandatory inclusionary housing obligation that requires developments of a particular size to contribute to land or money is supported. A system which is similar to public open space contributions could be considered. However, it is important that the parameters of such a system are subject to full consultation with the local government sector. Council reserves its position to make submissions on any specific proposals put forward by the Minister for Planning for regulatory reform in this area.

The provision of development incentives such as additional building height or increased setbacks is not supported. Councils undertake extensive strategic policy work in relation to neighbourhood character and built form policy guidance to inform planning scheme amendments, and proposals for social and affordable housing should respond positively to this policy guidance as much as other forms of development.

Council supports the Victorian State Government undertaking an evaluation of the pilot affordable housing initiative relating to surplus government land to determine whether to extend this to other suitable land sold by government. As a key land holder, the Victorian State Government and its agencies (Department of Education, VicRoads and VicTrack) should take the lead in the provision of social and affordable housing and not simply try to sell land to the highest bidder on the basis of the land being redundant. Public benefit can be derived in measures other than financial return. This could include building in a social and affordable housing target into future sales agreements on surplus government land sales or public private partnership arrangements. This would require the

Department of Treasury to review its Business Case assessment processes to ensure that wider public policy benefits can be achieved through surplus government land sales. This would ensure that the continued emphasis on leveraging maximum financial return from private development companies can be balanced against a lower profit margin, but higher practical public benefit outcomes.

Alternatively, Places Victoria could declare project areas under the Urban Renewal Authority Act 2003 in the form surplus Government land. Places Victoria could become the planning and responsible authority for the project and undertake rezoning of land to facilitate redevelopment (subject to consultation with the local council and community). The uplifts in land value could be reinvested into the declared project area to fund social and affordable provision.

The Victorian State Government has access to affordable housing waiting lists together with the legislative capacity to undertake projects on State Government owned land. In this regard, Victorian State Government agencies should also work to increase the number of social and affordable housing units based on the identified annual need for such housing. It should not be the intention to simply maintain the current quantum of housing stock when new development opportunities arise. Further, the Victorian State Government should look at introducing a standard percentage increase of affordable housing stock as part of public private partnerships on surplus government land. This standard increase should be able to meet current demand (based on current waiting lists) and projected increase in demand. Otherwise, the provision of affordable and social housing will never be able to keep up with demand.

Council does not support the identification of planning scheme requirements that could be waived or reduced without compromising the amenity of social and affordable housing or neighbourhood properties. Planning controls relating to building design standards and car parking provision are discretionary in nature already. Any regulatory reform which sought to exempt whole provisions of the planning scheme simply on the basis that a development includes social and affordable housing is not supported. Social and affordable housing should be required to comply with the relevant development standards similar to other forms of development.

Appendix C. Council’s Submission on the Technical Review of the New Residential Zones

Adopted by the Urban Planning Special Committee on 19 October 2015

Submission from Boroondara City Council on the technical review of the new residential zones (October 2015)

What is the issue? Why is this an issue? What is Council’s suggested change? Technical Issues All Zones Building height The definition of building height does not This is a general issue of lack of definition Update definition of “building height” and definition - exclude elements such as plant rooms, air and clarity which results in the need for “wall height” at Clause 72 to the following: Clause 72. conditioning, lift overruns, roof top discussion on a case-by-case basis with gardens, decks and communal outdoor planning permit applicants about what is Building height: The vertical distance spaces and ancillary facilities. This is and is not included in the definition of measured from the top of the roof ridge or despite this Council and other councils building height. If appropriately addressed parapet to natural ground level directly clarifying these exemptions for it would provide greater certainty and would below that part of the building being commercial areas through other allow for more efficient assessment. measured. mechanisms such as Design and Development Overlays. Specifically, this is an issue in instances Wall height: The vertical distance between where mandatory heights are in effect the top of the eaves at the wall line, (such as in the majority of Boroondara’s parapet or flat roof (not including a residential zones). Officers need to be able chimney), whichever is the highest, and the to accurately determine where building natural ground level directly below that part height should be measured because this of the building being measured. could mean the difference between a planning permit being refused or being granted.

Council has already sought to address this issue in commercial areas through site specific controls such as Design and Development - Schedule 16 (DDO16). The DDO16 specifies that certain elements such as plant rooms, air conditioning, lift overruns, roof top gardens, decks and communal outdoor spaces and ancillary facilities are not included in the definition of building height. This suggests an issue also exists in this regard for the residential zones.

What is the issue? Why is this an issue? What is Council’s suggested change? It is the practice of some architects to On sloping sites, if building height is measure building height from the top of measured from natural ground level at the the roof ridge or parapet to the natural title boundary, it will enable physical ground level at the title boundary, rather structures that have a height in metres than to the natural ground level directly above natural ground level that exceeds below the part of the building being the mandatory maximum height limits measured. prescribed within the residential zones/schedules.

Clause 32.07-4, The transitional provisions in all the zones Officers need to continually remind Rewrite the clause as follows: 32.08-4, 32.09-5: state “Despite the amendments made to themselves of the gazettal date of Transitional Clause 55 by Amendment VC100, Clause Amendment VC100 to determine what “Despite the amendments made to Clause provisions (VC100) 55 does not apply:…” changes were made to Clause 55 and 55 by Amendment VC100 (15 July 2013), whether the transitional provisions apply to Clause 55 does not apply:…” The above text does not include the date a particular application. of gazettal of Amendment VC100.

Clause 32.07 Residential Growth Zone Zone purpose The purpose of the zone includes “To This change is required to maintain The second dot point under application provide housing at increased densities in consistency between the purpose of the requirements in the RGZ should be buildings up to and including four storeys.” zone and the provisions which are intended deleted. to realise it. However, contrary to this, the provisions The 4th dot point under ‘dwellings and set out in dot point 2 of Clause 32.07-9 Further, both provisions create uncertainty residential buildings’ at Clause 32.07-11 Application requirements and Clause with regard to desired development Decision guidelines should be deleted. 32.07-11 Decision guidelines (4th dot point outcomes compared with the purpose of under ‘dwellings and residential buildings’) the zone, and create a situation where Alternatively, both the application suggest that development in the RGZ negotiations are required on a case-by- requirement and decision guideline could could be of five or more storeys. case basis. be applied only to applications which Specifically, that the developments would benefit from transitional arrangements at be subject to an assessment against Given the risks over case-by-case Clause 32.07-8. Clause 52.35. The decision guideline negotiations, this could ultimately lead to states: “For a development of five or more increased VCAT appeals and storeys, excluding a basement, the Design inconsistencies in meeting community Guidelines for Higher Density Residential expectations for new development in the Development (Department of RGZ - the purpose being for development

What is the issue? Why is this an issue? What is Council’s suggested change? Sustainability and Environment 2004).” up to 4 storeys.

Further, the requirement to assess an These references are contradictory with the application for five or more storeys already purpose of the zone to provide housing up exists at Clause 52.35 of the Planning to and including four storeys. Scheme. Its reference in Clause 32.07 is thought a duplication of a requirement that already exists in another provision and is not required.

Clause 32.08 General Residential Zone Zone purpose The lack of a definition relating to An Advisory Note should be provided which The purpose of the zone refers to ‘moderate housing growth’ is creating clarifies what ‘moderate housing growth’ ‘moderate housing growth’ without confusion for officers, Councillors and means or a clearer term provided. defining this term. VCAT about what is considered to be ‘moderate housing growth.’

Officers have reviewed at least 3 VCAT decisions which have suggested that anything from 4-80 dwellings can be considered as ‘moderate housing growth.’ The words ‘moderate housing growth’ therefore does not provide any real assistance for the assessment of a planning permit application. Further, what is ‘moderate’ appears to depend on the physical and policy context of the application.

The GRZ was initially used as the default zone to be applied to municipalities across Victoria when the new residential zones were introduced by the former Minister for Planning. Many councils applied this zone without undertaking any strategic work to justify it. The words ‘moderate housing

What is the issue? Why is this an issue? What is Council’s suggested change? growth’ may lead to councils being forced to undertake further strategic work for different areas (which may not have been expected) to assist decision-makers in determining what these words mean for a local context, and then seeking to achieve ‘moderate housing growth’ outcomes through individual planning permit application assessments.

This makes its inclusion as a purpose of the zone problematic and ineffective. The purpose of the zone should be unambiguous and clear without the need for extensive interpretation.

Clause 32.09 Neighbourhood Residential Zone Zone purpose The purpose of the NRZ suggests “To The exemption of non-residential buildings The maximum building height requirement manage and ensure that development from the maximum building height limit should extend to all buildings in the NRZ. respects the identified neighbourhood could result in built form outcomes in the character guidelines.” NRZ which are in contradiction to the purpose of the zone. This is exacerbated However, the mandatory building height by the fact that non-residential buildings requirement does not apply to non- are also exempt from the discretionary residential buildings. height control of 9 metres in ResCode.

This could lead to increased VCAT appeals given the discretion and uncertainty available for non-residential buildings.

Therefore there is a complete absence of planning controls with regards to the maximum building height of non-residential buildings in the NRZ. This leaves a policy vacuum and lack of clarity with regard to expected built form outcomes for non-

What is the issue? Why is this an issue? What is Council’s suggested change? residential buildings in areas that should be protected due to their identified character values.

This change is required to maintain consistency between the purpose of the zone and the provisions which are intended to realise it.

Vacant lot Clause 32.09-3 limits development to a The provisions of Clause 32.09-3 are Clause 32.09-3 in the NRZ should be subdivisions - Clause maximum of two dwellings on a lot limited to the number of ‘dwellings’ on a lot, revised to include a maximum of 2 32.09-3: Maximum of (irrespective of the size of the property). not the number of lots which can be dwellings and ‘lots.’ 2 dwellings on a lot However, the control is silent on any limit created. This has already lead to a small on the number of vacant lots that can be increase in planning permit applications for Some other options are provided below: created within the NRZ through a vacant lot subdivisions with a view to  Introduce standardised lot size subdivision application. applicants making separate applications to thresholds into the header provisions of construct 2 dwellings on each lot. the NRZ. It is therefore unclear whether the  Provide a mechanism to allow councils intention was to encourage (or at a This situation has the potential to create to specify tailored lot size thresholds to minimum allow for) vacant lot subdivisions impacts on neighbourhood character and suit local circumstances through a into more than 2 lots, followed by a inconsistencies in community expectations Schedule to the NRZ. subsequent planning permit application for about how lots are to be developed in the  Provide an opt-in mechanism which development of each lot with a maximum NRZ. could allow councils to adopt of 2 dwellings on each. standardised thresholds prepared by It also leaves the door open for property the Victorian State Government, or owners to create more than two lots, which retain the flexibility of preparing their is inconsistent with the overall intent of own analysis and strategic work and limiting development with the NRZ to two have it implemented through a local dwellings on a lot. planning scheme amendment.

Vacant lot The cap specified in Clause 32.09-3 Assuming an applicant was successful in Clause 32.09-8 should be revised to clarify subdivisions - Clause relating to 2 dwellings on a lot combined obtaining a planning permit to create 3 lots that only one dwelling can be constructed 32.09-3: with the uncertainty over any intentions for on a particular land parcel, separate on newly created lots when a vacant lot Resubdivision of vacant lot subdivision applications (see planning permit applications could then be subdivision has already been approved. newly created lots above), means that parent lots in the NRZ made to develop 2 dwellings on each lot. could ultimately contain more than 2 The use of lot size thresholds could allow

What is the issue? Why is this an issue? What is Council’s suggested change? dwellings. This would ultimately result in the for more tailoring of site yields in the NRZ circumventing of the maximum of 2 to suit local circumstances. Councils could dwellings on the ‘parent lot’ through determine their own thresholds and have applying for vacant lot subdivision first. them applied through a Schedule to the NRZ. While Council may not necessarily approve such an outcome, the fact that the control allows applicants to apply for such an outcome is a problem in itself. It would be preferable for the control to be clear to avoid unnecessary development proposals which are inconsistent with the purpose and intent of the zone.

Clause 32.09-8: There is a lack of clarity around the The implications of this exemption are: The exemption should be reworded to Building height building height exemption associated with provide better clarity around built form exemption ‘an extension of an existing building that 1. Depending on the roof pitch and the fall outcomes when it is applied to planning exceeds the specified building height of the land, extensions to existing dwellings permit applications. provided that the extension does not could achieve significant building heights exceed the existing building height.’ under this exemption, especially on sloping It is anticipated that the exemption is sites. This would risk creating amenity intended to maintain the existing roof The issue is two-fold: impacts on adjoining properties from ridgeline. excessive visual bulk. 1. Is the control intended to maintain the existing roof ridgeline of an existing 2. If the intention of the exemption is to building regardless of its height measured retain existing overall building height in a directly below at natural ground level? In dwelling extension, this could create issues which case, the building height (measured with building and construction. The roofline from natural ground level) could increase would need to alter to reflect the profile of over the length of the dwelling extension natural ground level or step down to ensure to maintain the roof ridge line, depending that the existing overall building height can on the slope of the land. be retained over the length or width of the site. and,

2. Is the intention that the existing building

What is the issue? Why is this an issue? What is Council’s suggested change? height be retained as the measure of a dwelling extension? In which case, the slope and form of a roof over a new dwelling extension would change to ensure that a consistent building height can be maintained, depending on the slope of the land.

Clause 32.09-8: There is a lack of clarity around the Officers understand the general intent of The wording of the exemption should be Building height building height exemption associated with this exemption to mean that where the clarified to improve certainty around how it exemption ‘the height of immediately adjacent neighbourhood character varies (as is to be applied. buildings facing the same street.’ determined by the heights of both directly adjoining buildings which are greater than 8 This could either be done through metres), that a building could exceed the 8 amending the exemption or issuing an metre mandatory height limit. Advisory Note.

However its implementation creates uncertainty for officers and decision- makers in the following ways:  It is unclear how the exemption is to be applied when one adjoining building height is equal to or less than 8 metres, and the other dwelling is in excess of 8 metres in building height.  Assuming both adjoining buildings exceed 8 metres in building height, it is unclear which height should be taken as the reference point for the mandatory height as pertaining to the subject site, or whether an average should be applied.

There is also the risk of a ‘domino effect’ occurring when building heights in excess of the mandatory 8 metres become normalised and then applied to

What is the issue? Why is this an issue? What is Council’s suggested change? progressively justify the exemption as development progresses. This will ultimately have the effect of significantly changing the very neighbourhood character which the NRZ is intended to protect.

There is an issue about how this provision The exemption reads as only being The wording of the exemption should be would apply to corner sites where one applicable when both adjoining buildings clarified to improve certainty around if and adjoining building faces the same street face the same street, however there is a how it is to be applied to corner sites. as the subject property, and whether the lack of clarity around how this would apply building on the opposite corner would to a corner site. This could either be done through qualify as the other adjoining building. amending the exemption or issuing an Officers need to be able to accurately Advisory Note. A further issue is the circumstances under determine when this exemption can be which the exemption might apply where a applied because this could mean the building located on the opposite corner to difference between a proposal being a subject site fronts the same street or a prohibited or having an assessment side street. triggered.

It also creates uncertainty for applicants and the community about development expectations in local areas and can also lead to requirements for case-by-case negotiations. This could ultimately lead to increased VCAT appeals.

NRZ and the SBO The maximum mandatory building height The Special Building Overlay triggers the Clause 32.09-8 should be amended in limit in the NRZ could result in need for a referral to Melbourne Water for accordance with the recommendation of compromised built form outcomes if the consideration. A condition will usually be the RZSAC. land is also covered by the Special applied that the ground floor level needs to Building Overlay which requires raised be raised 300mm above the nominated floor levels. flood level.

This has the potential to restrict the capacity for dwelling extensions to existing dwellings or new dwellings or residential

What is the issue? Why is this an issue? What is Council’s suggested change? buildings given the application of an 8 metre mandatory overall building height. The consequence is that ceiling heights could be shortened, with a reliance on flat roof structures to ensure reasonable ceiling heights for liveability.

This issue was highlighted by the Residential Zones Standing Advisory Committee in the Overarching Issues Report. The RZSAC recommended the provisions in Clause 32.09-8 be amended “to enable the overall building height to be measured from natural ground level, as generally defined by the planning scheme, with the maximum height being eight metres, plus any applicable flood level. This enables the effective ground level of the new building to be placed at the applicable flood level, or at natural ground level where no flood level applies.”

Policy Issues Supermarkets in the Officers are concerned about the Discretion available over supermarkets in The Table of Uses in the RGZ should be RGZ discretion available over supermarkets in the RGZ runs the risk of undermining amended to specifically prohibit the RGZ. activity centres policies, particularly in the supermarkets. established areas of Melbourne such as Boroondara. Council is directing these uses Alternatively the Table of Uses in the RGZ in the Commercial 1 Zone, not into should be amended to introduce a residential zones irrespective of proximity floorspace cap for shops (including to an activity centre. supermarkets) which might allow for local convenience supermarkets in the RGZ. There is also a concern about the impacts which full line supermarkets can have on residential amenity, particularly if these supermarkets are permissible in a

What is the issue? Why is this an issue? What is Council’s suggested change? residential zone. Council submits that just because new development can achieve higher densities in the RGZ, that residential amenity should not be compromised by excessive non-residential uses, particularly uses which should be an anchor for an activity centre and lead to high trip generation.

ResCode variation There is no capacity for Council to prevent Applicants seeking to construct residential Officers suggest that the capacity of this (Clause 54.04-2 and walls on boundaries given the schedule to buildings are increasingly looking to ResCode variation be extended to afford Clause 55.04-2: Walls the zone only allows a limitation on the maximise their building footprint and build councils greater discretion to prohibit the on boundaries length of a boundary wall. to boundaries to the maximum extent construction of walls on boundaries in objective) possible. some circumstances, not just their length. The schedule and ResCode do not allow for a prohibition on boundary walls. This is creating challenges to maintain high quality neighbourhood character, This may also require an update to the particularly in the NRZ which has been Building Regulations. applied to areas of highly valued neighbourhood character. A character element may include minimal walls on boundaries and this is something which Council might be seeking to protect.

Additional ResCode The ResCode variations available to This issue has arisen with new Introduce the capacity for councils to vary variations councils through zone schedules do not developments which might be built to or the following additional ResCode standards allow for variations to these standards: within close proximity of a northern through the schedule template for the boundary or an adjoining boundary. residential zones:  Clause 54.04-3 and Clause 55.04-3 - Daylight to existing windows objective At present, Council cannot influence built  Clause 54.04-3 and Clause 55.04-3 - (Standards A12 and B19) form outcomes in this way because the Daylight to existing windows objective scope of ResCode variations available to (Standards A12 and B19)  Clause 54.04-4 and Clause 55.04-4 - councils does not extend to these clauses. North-facing windows objective  Clause 54.04-4 and Clause 55.04-4 - (Standard A13 and B20) This often results in poor internal and North-facing windows objective external amenity from lack of sunlight (Standard A13 and B20)

What is the issue? Why is this an issue? What is Council’s suggested change?  Clause 54.05-1 and Clause 55.05-3 access. Daylight to new windows objective  Clause 54.05-1 and Clause 55.05-3 (Standard A16 and B27) Daylight to new windows objective (Standard A16 and B27)  Clause 54.05-3 and Clause 55.05-5 Solar access to open space objective  Clause 54.05-3 and Clause 55.05-5 (Standard A18 and B29) Solar access to open space objective (Standard A18 and B29)

Appendix D. Council’s Comments on the List of Suggested Improvements to the New Residential Zones

Endorsed by the Urban Planning Special Committee on 7 March 2016

List of Suggested Improvements to the Residential Zones

Table One: List of suggested improvements to the residential zones

The following has been prepared by the Managing Residential Development Taskforce (the Taskforce) in accordance with Clause 11.b Terms of Reference for the Managing Residential Development Advisory Committee (MRDAC).

The Taskforce has compiled this list based suggestions from a number of sources including Council, Industry Bodies, and the submissions and the recommendations of the Residential Zones Standing Advisory Committee.

The following list is provided for comment only and the Taskforce (or the MRDAC) has not formed an opinion on the validity or rationale for the suggestions.

No. Zone(s)* Proposed amendment Council’s Comment (Compiled by the Taskforce) 1 NRZ Increase the NRZ maximum building height limit to 9 metres. Context and rationale behind the suggestion required to enable a meaningful discussion. e.g. does this allow for an extra 1.0 metre if the topography of the land is more than 2.5 degrees? 2 NRZ Provide for the maximum number of dwellings in the NRZ to Disagree. Keep existing wording. not be less than 2 dwellings. 3 NRZ Remove mandatory height requirements (performance Disagree. Mandatory heights provide certainty for all based). parties. 4 NRZ Reduce maximum building footprint allowable for a single In principal support to review the need to introduce dwelling. additional requirements in the Schedule to the Zones on site coverage, setbacks, open space etc. 5 NRZ Prohibit subdivision permit without a concurrent dwelling Context and rationale behind the suggestion required planning permit. to enable a meaningful discussion. e.g. boundary realignments considerations; considerations of subdivisions that results in no development, etc. 6 NRZ Review zoning across Melbourne for a more equal distribution Context and rationale behind the suggestion required of NRZ land. to enable a meaningful discussion. No. Zone(s)* Proposed amendment Council’s Comment (Compiled by the Taskforce) 7 NRZ Discourage unoccupied dwellings (Clause 52.11 Home Context and rationale behind the suggestion required Occupation). to enable a meaningful discussion.

Home occupations should have an operator living on the site to prevent commercial creep into residential area. Home occupation provisions are satisfactory. 8 NRZ Create maximum lot size. The intent of the suggestion is not clear. Context and rationale behind the suggestion required to enable a meaningful discussion. 9 NRZ Include Council’s neighbourhood objective in schedule to the In principal support for the review of the need to NRZ. introduce additional requirements in the Schedule to the Zones on site coverage, setbacks, open space etc. 10 NRZ Clarify “appropriate development” (built form, intense Individual Councils will have different views on what development across multiple smaller lots etc.) appropriate development.

Most Councils will have a neighbourhood character policy or reference document that will assist in this definition. 11 NRZ Amend subdivision loophole allowing for multiple lot In principal support. Minimum lot size would assist. subdivision. 12 NRZ Include a ‘no net dwelling loss’ clause for existing multiunits Context and rationale behind the suggestion required to be redeveloped to enable a meaningful discussion. 13 NRZ Remove principle under Practice Note 78: Council has no issues with this existing principle. If ‘Areas where more than 80 percent of lots currently this principle is removed, further guidance should be accommodate detached dwellings’. provided in the application of the NRZ. 14 NRZ Apply maximum building height requirement to all buildings. In principal support. 15 GRZ Introduce a Building Design Guideline for multi•level In principal support. developments. 16 GRZ Require section 1 uses to submit design response. Context and rationale behind the suggestion required to enable a meaningful discussion. 17 GRZ Amend NRZ and GRZ purpose of zone for clearer distinction: Insufficient information for comment. To encourage the implementation of neighbourhood character policy and adopted neighbourhood character guidelines No. Zone(s)* Proposed amendment Council’s Comment (Compiled by the Taskforce) 18 GRZ Remove the permit trigger for lots under 500 sqm. Disagree. 19 GRZ Define “moderate housing growth” to provide clearer direction Need to recognise that definition will be different for for Council of expected growth. each Council. 20 RGZ Delete reference to four storey development from the purpose Disagree. Should further clarify with a mandatory of zone. height limit. 21 RGZ Amend Rescode to trigger the need for assessment for low In principal support of the use of ResCode for the rise apartments where the provisions within RGZ contradict assessment of all apartment buildings in the RGZ. that of Rescode. 22 RGZ Include provisions for ‘as of right’ mixed use applications. Context and rationale behind the suggestion required to enable a meaningful discussion. 23 RGZ Apply mandatory boundary of RGZ to be commercial zone or Disagree. Council would not support the automatic to be within 100m of commercial zone or Activity Centre Zone. provision of a mandatory RGZ within 100 metres of a commercial zone as neighbourhood character and heritage considerations will be relevant. 24 RGZ Remove the requirement for locational conditions of section 2: Disagree. This could lead to commercial development in residential side streets. The land must have the same street frontage as the land in the commercial zone. 25 RGZ Amend the purpose of the zone to provide clarity for Context and rationale behind the suggestion required underdevelopment of land. to enable a meaningful discussion. 26 RGZ Include front setbacks, open space and wall boundaries In principal support for the review of the need to requirements. introduce additional requirements in the Schedule to the Zones on site coverage, setbacks, open space etc.

In principal support for specific building design requirements for multi-level developments. 27 RGZ Remove ‘as of right’ uses under 250 square metres. Context and rationale behind the suggestion required to enable a meaningful discussion. 28 RGZ Review of non•residential land uses in residential area which Context and rationale behind the suggestion required reduce commercial uses beyond activity centres. to enable a meaningful discussion. In principal support for where commercial creep into residential areas is reduced. 29 RGZ Review of peripheral area for RGZ to avoid conflict of Context and rationale behind the suggestion required No. Zone(s)* Proposed amendment Council’s Comment (Compiled by the Taskforce) inappropriate commercial development. to enable a meaningful discussion. Land use conflict between commercial and residential areas should always be a relevant consideration. 30 RGZ Apply Clause 55 to multi dwellings greater than four storeys. In principal support. Apartment Design Code would assist. 31 RGZ Provide mechanisms for social/affordable housing. Insufficient information for comment.

Refer to Appendix B of Council’s submission for Council’s position on social/affordable housing. 32 RGZ Review the need for notification/advertisement for certain Insufficient information for comment. e.g. in what applications within zone. circumstances would these apply? 33 RGZ Establish urban area infrastructure development contribution In principal support for standardised infrastructure scheme for residential areas. contribution in established areas. 34 RGZ Include classification for lot sizes and developments expected Context and rationale behind the suggestion required to achieve higher density. to enable a meaningful discussion. 35 RGZ Restrict type of residential development to prevent Context and rationale behind the suggestion required underdevelopment areas. to enable a meaningful discussion. 36 RGZ Prohibit section 2 commercial uses allowed within 100 metres Not applicable to Boroondara. if residential areas in regional locations. 37 RGZ Clearer application of RGZ to direct Council’s on areas of Context and rationale behind the suggestion required growth. to enable a meaningful discussion. 38 RGZ Provide definition for height requirements (Clause 32.09•8). In principal support. Refer to Appendix C of Council’s submission. 39 RGZ The transitions between RGZ and other residential zones In principal support. should be more comprehensively addressed in Clause 32.07•8. 40 RGZ Include references of relevant policy documents (structure In principal support. plans and urban design frameworks etc.) 41 RGZ Under Clause 32.07•9 Application requirements, delete: Disagree, unless superseded by other requirements as For residential development of five or more storeys, an urban part of any future Apartment Design Code. context report and design response as required in Clause 52.35. 42 RGZ Under Clause 32.07•11 Dwelling and residential building, Disagree, unless superseded by other requirements as No. Zone(s)* Proposed amendment Council’s Comment (Compiled by the Taskforce) delete: part of any future Apartment Design Code. For a development of five or more storeys, excluding a basement, the Design Guidelines for Higher Density Residential Development. 43 RGZ Prohibit supermarkets in Table of Uses. In principal support.

44 RGZ Prohibit walls on boundaries at Council’s discretion. Context and rationale behind the suggestion required to enable a meaningful discussion.

Site responsive design is required for all development. 45 RGZ Review schedules to zone to vary daylight to: In principal support for new provisions to deal with  existing windows; equitable development rights and orientation of  north facing windows; apartments, saddleback windows, borrowed light.  new windows; and  solar access to open space objectives 46 GRZ Amend reference to building heights in the purpose of the Insufficient information for comment. zone with the provision of the zone and Practice Note 78: Applying the Residential Zones (2013) 47 NRZ and GRZ Amend wording for permit requirements for front fence to: Context and rationale behind the suggestion required to enable a meaningful discussion. A permit is required to construct or extend a front fence within 3 metres of a street if: The fence is associated with 2 or more dwellings on a lot or a residential building, and the fence exceeds the maximum height specified in Clause 55.06•2. 48 NRZ and GRZ Include level of appropriateness for extent of exemptions Context and rationale behind the suggestion required (depending on the location, neighbourhood character and to enable a meaningful discussion. schedule etc.) 49 NRZ and RGZ Require physical barrier (e.g. road) between to RGZ and NRZ Context and rationale behind the suggestion required to ensure the objective of the zones are met. to enable a meaningful discussion. 50 NRZ and RGZ Clarification of definition for differing natural ground scenarios. In principal support. Definition would be helpful to prevent significant earthworks being carried out prior to lodging applications. No. Zone(s)* Proposed amendment Council’s Comment (Compiled by the Taskforce) 51 GRZ and RGZ Rename the RGZ and GRZ to avoid confusion between the Context and rationale behind the suggestion required two acronyms. to enable a meaningful discussion. 52 GRZ and RGZ Review conditions associated with Section 1 and 2 uses: Only reviewing the conditions is not sufficient. Food Food and Drink Premises is a conditioned Section 1 use and drink premises should be a section 2 use in RGZ. under Residential Growth Zone. Food and Drink Premises under a General Residential Zone is not a conditioned use under a Section 2 use. 53 GRZ and RGZ Amend colour differentiation on the zoning map for clarity. In principal support. 54 GRZ and RGZ Vary building heights through zone schedules. In principal support. 55 GRZ and RGZ Prohibit establishment of shops, offices and food and drink In principal support. This will prevent commercial premises (subject to floor area limits), within 100 metres of creep into residential areas. commercial zone with the same road frontage without planning permit. 56 GRZ and RGZ Apply mandatory height limits. Support. 57 NRZ, GRZ Rename the zones to a neutral naming convention such as A, Insufficient information for comment. and RGZ B, C or 1, 2, 3. 58 NRZ, GRZ Update and merge into a consolidated practice note, PN43: PN43 and PN 28 should be updated and merged as and RGZ Understanding Neighbourhood Character (2001) and PN28: they relate to development applications. Using the Neighbourhood Character Provision in Planning Schemes (2004) to address neighbourhood character and PN78 should stand alone as a guide to applying principles for addressing it in planning schemes in conjunction zones. with PN78: Applying the Residential Zones (2013) 59 NRZ, GRZ Review the operation of the schedules and consider Context and rationale behind the suggestion required and RGZ consolidation for better clarity for planners and broader to enable a meaningful discussion. community. 60 NRZ, GRZ Review process and authorization for Councils to apply Context and rationale behind the suggestion required and RGZ multiple schedules to address the role and character of to enable a meaningful discussion. different areas. 61 NRZ, GRZ Review zoning maps so they form relationship to ‘on ground Disagree. and RGZ circumstances’. Zones should not change mid street. 62 NRZ, GRZ Apply schedules to all Council’s across Melbourne. Context and rationale behind the suggestion required and RGZ to enable a meaningful discussion. 63 NRZ, GRZ Amend the use of land for a Store (section 2 use) to exempt Context and rationale behind the suggestion required No. Zone(s)* Proposed amendment Council’s Comment (Compiled by the Taskforce) and RGZ the storage of one motor vehicle. to enable a meaningful discussion. 64 NRZ, GRZ Allow variation of Rescode requirements through zone Support. and RGZ schedules.

65 NRZ, GRZ Amend to include Council’s vision within schedule. Unnecessary. Neighbourhood character statement and RGZ reference would be appropriate. 66 NRZ, GRZ Consideration for additional clause for describing: Insufficient information for comment. and RGZ Desired Future Character or Vision for the Area. 67 NRZ, GRZ Provide articulation of the role of each municipality for the Disagree. Individual local housing targets do not and RGZ provision of housing with greater parameters for application of properly reflect the development opportunities or zones to guide Council’s at local level with any expectations constraints of particular municipalities, e.g. brownfield clear and transparent. sites vs. heritage areas. 68 NRZ, GRZ Amend section 1 uses to be subject to building and works Insufficient information for comment. and RGZ controls. 69 NRZ, GRZ Specify maintenance of on•street parking spaces in zone with Insufficient information for comment. and RGZ provisions with any reduction (cross•over) assessed. 70 NRZ, GRZ Review Practice Notes relating to residential zones for In principal support. and RGZ consistency. 71 NRZ, GRZ Amend each zone to include level of change expected Insufficient information for comment. and RGZ (minimal/natural/substantial). 72 NRZ Include minimum setbacks from the side or rear boundary (as In principal support to introduce additional per A11 and B18/ Building regulation 414). requirements in the Schedule to the Zones on site coverage, setbacks, open space etc. 73 NRZ Detail side setback requirements (as per A11 and B18/ In principal support to introduce additional Building regulation 414). requirements in the Schedule to the Zones on site coverage, setbacks, open space etc. 74 NRZ Review setback requirements which do not guide irregular lot In principal support to introduce additional sizes. requirements in the Schedule to the Zones on site coverage, setbacks, open space etc.

Key to zone notations: NRZ – Neighbourhood Residential Zone, GRZ – General Residential Zone, RGZ – Residential Growth Zone, TZ – Township Zone and MUZ – Mixed Use Zone.