A new discussion paper reveals the Victorian Government could save nearly $2 billion and deliver up to 26,000 new social homes over the next decade by enabling community housing organisations to purchase land adjacent to existing community housing properties.

Prepared by Swinburne University and Ys Housing, in partnership with CHIA Victoria and 10 community housing providers, the paper identifies 1,637 potential redevelopment sites across Melbourne, Geelong, Ballarat and Bendigo that could be amalgamated with neighbouring social housing, providing a transformative approach to boosting housing supply.

A state government investment of $80 million a year for ten years would allow the purchase of 1,000 lots, unlocking land to build between 10,500 and 26,000 social housing units; save taxpayers $1.99 billion through lower land costs, efficient land use, and more cost-effective project delivery; and create savings of $250,000 per new dwelling.

Over the longer term and with additional investment, the model could deliver up to 65,000 social homes, sufficient to clear Victoria’s social housing waitlist entirely.

“Victoria faces a golden but narrow window of opportunity to unlock land that could deliver thousands of new social housing dwellings across Melbourne and regional Victoria,” says Community Housing Industry Association (CHIA Vic) Chief Executive Sarah Toohey.

“By buying properties next door to ageing community housing dwellings, we can create larger blocks, and deliver more social homes at scale. This would switch the dial on the housing crisis while saving taxpayers money in the long run.”

Toohey believes this is an opportunity for not-for-profit organisations to develop more homes that are genuinely affordable, rather than allowing private developers to transform these sites into premium properties designed to boost prices and profit margins.

“This would also help the Victorian Government achieve its goal of delivering more homes in existing suburbs,” she notes.

“If we don’t act quickly, it will mean less homes that are affordable for Victorians, and inevitably a more expensive social housing budget in the long run to catch up.”

Any delay in implementing the recommendation would further reduce the options to bring these sites together, which would mean having to build further away, sacrificing proximity, services, and amenities for lower cost, Toohey adds.

Echoing the call for urgent action, Ys Housing CEO Oscar McLennan observes that the strategy would not only secure the future of community housing in Victoria but also save the government $250,000 per new dwelling.

“We know it's absurdly hard to deliver housing at a reasonable price-point at the moment, yet site amalgamation presents a viable pathway to do just that,” says McLennan.

“Amalgamating ageing community housing with neighbouring properties would involve voluntary transactions, providing property owners who may already be considering selling with the opportunity to do so.

"Site amalgamation is a strategic and sustainable way to help safeguard Victoria's social housing future. But the state government, in partnership with the community housing sector, must act decisively to seize this opportunity now before rising land prices and missed acquisition chances reduce its potential. The greatest challenge we face isn't the strategy itself but the urgent need for upfront investment and swift action to secure these sites while we still can.”

Image: Anna O’Gorman Architects | Credit: Christopher Frederick Jones | Supplied

Architecture News & Editorial Desk

Let’s connect!