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What are Activity Centres and Catchment Areas?

The Victorian Government's activity centre proposal is an urban planning strategy designed to increase housing density in established suburbs. It introduces the concept of activity centres and catchment zones as areas earmarked for the highest-density development. Activity centres will accommodate buildings up to 20 storeys in most locations, with a limit of 12 storeys in Moonee Valley, while catchment zones will allow buildings up to six stories. These catchment zones will extend up to 800 meters around each activity centre, covering significant parts of suburban neighbourhoods. A natural consequence of this plan is that suburban homes will often be adjacent to large apartment blocks, raising concerns about privacy, overshadowing, and the broader impact on neighbourhood amenity.

To give effect to these proposals the Minister for Planning of Victoria, Sonya Kilkenny, is revising regulations that include reduced setback requirements, increased overshadowing allowances, lower parking requirements, and “deemed-to-comply” proposals which risk diminishing privacy, sunlight, and amenity for existing residents.

The Government hopes that reducing planning constraints will lower development costs by enabling builders to construct more homes on smaller parcels of land with less oversight and fewer regulatory hurdles. This aligns with the principle of trickle-down economics, where cost savings for developers are expected to flow through the housing market, resulting in more affordable prices for homebuyers. By making it easier and cheaper to build, the government anticipates an increase in housing supply, which could temper rising property prices and improve accessibility for first-time buyers. However, this relies on two things - the assumption that developers will pass on these savings, and any price reduction as a result of increased supply doesn't of itself lead to a downward adjustment in supply.

  • A key aspect of the proposed 2024 reform is to increase height and reduce setback requirements allowing a greater number of apartments to be build on a site. So what exactly is a setback?

    The distance between the property boundary and a building on the site is commonly called a setback. There are different setback requirements for the front, rear and side boundaries, also as a building gets higher there is a requirement for a greater setback. It is proposed that each of these setback requirements will be reduced:

    If these changes are implemented, existing residents may face several potential disadvantages:

    1. Front Setback: Currently must be more than 6 meters and up to 9 meters. It is proposed that these should be reduced to 3-4 meters. 

    2. Side Setback: It is proposed that the side setback be reduced to 1 meter or less. Zero-lot-line developments (where one wall of the dwelling is built directly on the property line) are allowed in certain medium- or high-density housing zones.

    3. Rear Setback: currently require a significant separation of usually 3-5 meters. It is proposed that the setback would be eliminated altogether in spaces that back onto public spaces, or reduced significantly to 1-2 meters otherwise.

    4. Height-based setbacks: These require higher buildings to be setback further. Under the proposed arrangement taller dwellings or multi-story developments in catchment areas less setback than before. While over shadowing rules remain they have been reduced.

    Impacts on Residents
    Loss of Privacy: Closer proximity to boundaries means that homes will be built nearer to each other:

    • Overlooking into neighbouring yards or windows.

    • Less space for landscaping or barriers to block views between properties.

    • Zero-lot-line developments could further exacerbate the feeling of overcrowding.


    Reduced Green Space: Less room for front and back gardens, impacting:

    • The aesthetic character of neighbourhoods.

    • The ability to plant trees or maintain private outdoor space

    • Opportunities for children’s play or relaxation in private yards.


    Increased Urban Heat: Reduced setbacks will lead to fewer trees and green spaces, contributing to the urban heat island effect, particularly in areas where developments are densified with minimal landscaping.


    Increased Noise and Light Pollution: Homes which are closer together will expose residents to greater levels of noise from neighbours (e.g., conversations, parties, or appliances) and light pollution, especially in high-density areas.


    Changes to Neighbourhood Character: Established suburbs with larger setbacks and significant greenery will see their character eroded, as compact developments are introduced to areas traditionally dominated by detached homes with spacious lots.


    Traffic and Parking Issues: With reduced setbacks, on-site parking spaces may be limited, forcing more cars onto streets. Narrower front setbacks may also mean less room for driveways, exacerbating local parking shortages.


    Reduced Access to Sunlight: Closer spacing between buildings will block sunlight to neighbouring homes and outdoor spaces, leading to shadowing effects and darker interiors in smaller properties. 


    Strain on Local Infrastructure: Increased density resulting from reduced setbacks could place pressure on:

    • Roads, schools and public transport, don’t keep pace with development.

    • Utilities (water, sewer, electricity, NBN). In a shameful lack of transparency the government has not released reports into these systems that were never designed for high-density living.


    Potential for Conflict Between Neighbours: After the developer has sold and moved on, innocent neighbours will be left to resolve disputes over issues such as privacy, noise, boundary fencing, and landscaping.

  • Overshadowing regulations are rules designed to prevent new developments from blocking sunlight and casting excessive shadows over neighbouring properties, particularly residential areas. These regulations aim to balance the needs of developers to build new structures with the rights of existing residents to maintain access to natural light and outdoor spaces, which are important for health, wellbeing, and quality of life.

    Typically, overshadowing regulations specify the amount of sunlight that must be maintained for neighboring properties, particularly in areas like:

    1. Private open spaces (e.g., backyards, gardens).

    2. Windows (especially those that are primary sources of light for living areas).

    3. Solar panels, which are increasingly common as a sustainable energy solution.

    These regulations might include limitations on:

    • The height and mass of new buildings: Ensuring that taller buildings don't block sunlight from reaching lower properties.

    • The position of new developments: For example, there may be rules on how far a building can be set back from the boundary or how much of a shadow a new building can cast on neighbouring properties during certain times of the day or year (e.g., in mid-winter when sunlight is more limited).

    Proposed Changes to Overshadowing Regulations

    The Victorian government is proposing changes to these overshadowing rules, which might include:

    1. Relaxing the rules to allow new developments to cast more shadow on neighbouring properties than they currently do.

    2. Reducing the amount of sunlight required for neighbours' outdoor spaces or windows.

    3. Changing the measurement criteria for how much shadow is permissible (e.g., adjusting the time of day or the amount of area that can be overshadowed).

    What does this mean for you?

    If these changes are implemented, existing residents may face several potential disadvantages:

    1. Reduced Access to Natural Light: More buildings casting longer or larger shadows could significantly reduce the amount of sunlight that reaches residents' homes, gardens, and outdoor spaces, especially during the winter months when sunlight is already limited.

    2. Loss of Privacy: Taller buildings may overshadow not only the property itself but also intrude on residents' privacy by being closer to windows and private spaces. This could lead to a sense of being overlooked or exposed.

    3. Diminished Quality of Life: Less sunlight can have various effects on residents' wellbeing, including lower mood, poorer mental health, and a less comfortable living environment. Gardens and outdoor spaces could become unusable or less enjoyable, especially if they are deprived of natural light for large parts of the day.

    4. Decreased Property Value: Properties that are overshadowed for large portions of the day may see a decline in value due to reduced amenity, privacy, and natural light. 

    5. Environmental Impact: Less sunlight may also reduce the effectiveness of solar panels, potentially increasing energy costs for residents who rely on renewable energy sources. Additionally, outdoor areas may be less useful for gardening or recreational purposes, affecting the quality of green spaces in the neighbourhood.

    While changes to overshadowing regulations might benefit developers by allowing for more flexible or denser construction, they could significantly disadvantage existing residents by reducing sunlight, privacy, and amenity, potentially lowering property values and impacting the overall quality of life in affected areas. 

  • Deemed-to-comply provisions are specific rules that automatically allow a development proposal to proceed without the need for detailed planning assessments or discretionary approval processes. Essentially, these provisions outline what a developer can do by right. These provisions "streamline" the approval process by reducing your right to be be informed of new developments in your neighbourhood or have your concerns  adjudicated on by an unbiased authority (local council, the Victorian Building Authority or the Victorian Civil and Administrative Tribunal) 

    How do these provisions work?

    If a developer’s proposal falls within the boundaries of the deemed-to-comply criteria, it automatically complies with the planning regulations. In other words, the proposal does not require additional review, negotiation, or assessment by the planning authority, and it is likely to be approved quickly.

    How the removal of review processes could impact you

    1. Less Community Input and Oversight: If a development complies with deemed-to-comply provisions, there will be little or no opportunity for residents or local communities to object to or review the proposal. 

    2. Loss of Flexibility in Planning: Review processes typically allow planning authorities to exercise discretion in assessing the broader context of a development, such as its fit with the neighbourhood, its impact on local infrastructure, or its environmental footprint. Removing these review processes could mean developments are approved simply because they meet technical or prescriptive criteria, without considering their wider effects on the community.

    3. Reduced Scrutiny of Potential Negative Impacts: Without review processes, there might be less detailed scrutiny of developments, particularly those that fall into grey areas between compliance and potential harm to the neighbourhood. For example, a building that technically meets the height limit could still have a significant negative impact on neighbours due to its design, materials, or location.

    4. Decreased Transparency: Development approval process will become more opaque. Decisions made solely based on whether a proposal meets deemed-to-comply provisions eliminate opportunity for community engagement and buy-in.

    The current review process

    Currently, most planning processes involve some form of review or discretionary approval. These typically include:

    • Public notification: Residents and community members are notified about development proposals, giving them an opportunity to comment or object.

    • Planning assessments: Development applications undergo detailed assessments by planning officers, who take into account factors like overshadowing, traffic impact, neighbourhood character, and more.

    • Public hearings or consultation: In some cases, formal hearings or meetings are held to discuss proposals and concerns from residents or local groups.

    • Appeals process: If a development is approved or rejected, affected parties (such as residents or developers) can often appeal the decision, providing a check on the planning authority’s decision-making.

    How removing review processes affects you

    If review processes are removed or diminished, the impacts will include:

    1. Limited Opportunity to Object: You will be deprived of an opportunity to voice concerns or objections —such as increased overshadowing, loss of privacy, or strain on local infrastructure.

    2. Fewer Safeguards Against Inappropriate or Overdevelopment: Review processes help ensure that developments are in line with broader planning principles, including preserving neighbourhood character, protecting environmental resources, and ensuring the provision of necessary public services. Without such reviews, unchecked overdevelopment is a risk.

    3. Unintended Consequences: Developments that technically comply with deemed-to-comply provisions can have negative consequences. The removal of a review process may result in decisions that fail to take into account the full, nuanced impact on the community—like traffic congestion, parking shortages, or pressure on public amenities.

    4. Loss of Engagement: More people will be less connected to their communities when they no longer have have a voice in the planning process.

    The introduction or expansion of deemed-to-comply provisions combined with the removal of review processes will make the planning approval process faster and easier for developers however this will be at the expense of existing residents. 

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