Victoria Approves Plan for Nearly 12,000 New Homes in Melbourne’s West
MELBOURNE, The Victorian Government has approved a major planning framework for Melton East, paving the way for nearly 12,000 new homes, seven schools, parks, community facilities and thousands of jobs in Melbourne’s growing west. More
Victorian Planning Minister Sonya Kilkenny approved the Melton East Precinct Structure Plan (PSP) on 21 August. The precinct is expected to accommodate more than 36,000 residents and support around 1,600 jobs once fully developed.
Located about 35 kilometres north-west of Melbourne’s CBD, east of the existing Melton township, Melton East covers about 1,005 hectares. Planning documents envisage a new residential and commercial community supported by schools, employment areas, roads, parks and community infrastructure.
Nearly 12,000 homes and new infrastructure
The development is planned to include four community hubs, shopping areas and more than five MCGs worth of parks and reserves.
Transport infrastructure will include three major roads, 14 intersections and five bridges, along with improved walking and cycling connections. The government says the project will be delivered in two stages so housing construction can progress alongside roads, schools and other essential infrastructure.
Kilkenny said the plan was about more than increasing housing supply, with infrastructure also needed to support future residents.
“We’re unlocking space to deliver thousands of more homes – as we deliver the infrastructure these communities need,” she said.
The Victorian Government said the wider Melton area is also benefiting from major infrastructure investment, including the Melton railway line electrification, the construction of Melton Hospital and upgrades to roads and schools. Source
Development to take decades
The approval does not mean all 12,000 homes will be built immediately. Instead, the PSP establishes the long-term planning framework for the precinct.
The Victorian Government expects Melton East to be developed progressively over the next 20 to 30 years, with developers able to proceed with permit applications under the approved planning framework.
Planning Panels Victoria records show the Melton East PSP and Infrastructure Contributions Plan went through a formal planning process, including a public hearing in 2025. The Victorian Planning Authority referred the draft planning scheme amendment and supporting documents to the VPA Projects Standing Advisory Committee in April 2025. Source :
Part of Victoria’s broader housing strategy
Melton East forms part of Victoria’s broader 10-year plan for Melbourne’s greenfield areas. The plan provides a framework for industry and government to plan for 180,000 homes in Melbourne’s newest suburbs and emphasises coordinating housing development with infrastructure such as transport, schools and community facilities.
The government has also said future precinct plans will include staging provisions where necessary to ensure infrastructure keeps pace with development.
Infrastructure remains a key challenge
While the Melton East plan is expected to significantly increase housing supply, the rapid growth of Melbourne’s western suburbs has also raised concerns about whether infrastructure and services can keep pace with population growth.
The challenge will be ensuring roads, schools, public transport and community facilities are delivered at the same time as new housing, particularly as thousands of additional residents move into the area over the coming decades.
With Melton East expected to grow to more than 36,000 residents, the success of the project will depend not only on the number of homes delivered but also on whether essential infrastructure is available as the new community develops.
