Inner Melbourne on track for 35,000 new homes after Victoria locks in two final rail zones

Jul 2026
Two new train and tram zones in inner Melbourne has the government eyeing a 300,000 new homes target by 20151. Photo: ANDREW KACIMAIWAI
Two new rail zones in inner Melbourne has the government eyeing 300,000 new homes by 2051. Photo: ANDREW KACIMAIWAI

Inner Melbourne is a tram bell ring closer to 35,000 more homes after Victoria locked in planning controls for the city’s final two rail zones.

The new zones will result in 35,000 new homes across the Melbourne and Yarra council areas, government says.

It will also allow them to build 300,000 new homes close to trains, trams and jobs by 2051, they add.

The new planning controls will apply to four precincts:

  • Macaulay in North Melbourne: close to Macaulay, Arden, Kensington, Flemington Bridge and Newmarket stations, and to tram routes 57 and 59.
  • Fitzroy and Collingwood: including Brunswick Street, Gertrude St, Smith St and Victoria Parade, and close to tram routes 11, 86 and 109.
  • Richmond: along Bridge Road and Victoria St, close to North Richmond and West Richmond stations, and to tram routes 48, 75 and 109.
  • Alphington: along Heidelberg Road, close to Dennis, Fairfield and Alphington stations, and served by Route 546 buses.

Click here for the Transport Victoria website

UNLOCKING NEW INNER CITY LAND

State Planning Minister Sonya Kilkenny says: “For years, some of Melbourne’s best-connected suburbs have been locked up and it’s pushing young people and families out.

“We’re changing that,” she says.

“Our reforms are about making sure more Victorians can live close to great trains, trams, schools and jobs.”

The government says that too much land close to the CBD has been ‘locked away’ from new housing development despite a strong train and tram network.

The new planning controls will fast-track developments, it says, and highlights the following changes as a result.

In the inner city at Macaulay, buildings four to 15 storeys high will be allowed; taller buildings will be located closer to CityLink and lower heights applying to buildings in the transition ‘out’ to surrounding suburbs.

In Yarra City, building heights will range from two to five storeys in the heritage areas of Fitzroy and Collingwood.

At certain sites like the former Porter Factory in Alphington, heights will reach up to eight storeys and up to 10 storeys around North Richmond Station.

Buildings of up to 12 storeys will be supported along major tram corridors including Victoria Parade.

The government says they will work with Melbourne and Yarra councils to identify more sites for future housing.

TRY BEFORE YOU RIDE DAY: Click here for details about the event on October 15.


OTHER VICTORIAN NEWS: New freight rail hub to link to Melbourne Port

Scroll to Top