Melbourne's Middle-Ring Suburbs Get a Makeover: 20-Storey Towers and New Activity Centres (2026)

Melbourne's Southeast Transformed: New Activity Centres and Housing Plans Unveiled

The Allan government has unveiled a comprehensive plan to reshape Melbourne's southeast, introducing towers up to 20 storeys and large townhouse-friendly areas. This initiative aims to boost higher-density housing around train and tram lines, addressing the need for more homes in the region. The government has released draft maps for 23 train and tram activity centres, inviting public feedback.

The maps reveal that Caulfield train station's surrounding area will have the highest height limits, with some zones reaching 20 storeys. Malvern, Prahran, South Yarra, and Springvale will also accommodate buildings up to 16 storeys. Height restrictions are proposed for sites near railway stations and Toorak Village, a tram-served area.

Two strategic sites on the western side of Caulfield Racecourse are yet to have their height limits determined. The government plans to identify key sites for housing in the City of Melbourne and the City of Yarra, working closely with local councils. Lower-density areas are designated for townhouses and low-rise apartments within walking distance of stations, comprising a larger portion of the suburbs.

Streets within a five-minute walk from a station can have up to four storeys, or six storeys on blocks over 1000 square metres. Areas within a 10-minute walk will have limits of three or four storeys. These boundaries overlap in closely spaced train stations, merging South Yarra, Hawksburn, Prahran, and Windsor into a larger activity centre.

Planning Minister Sonya Kilkenny emphasized the reforms' focus on providing housing choices, including homes near public transport, townhouses in inner suburbs, and family homes with backyards. However, the government's activity centres have faced backlash in some suburbs, with Brighton locals opposing the plans led by Liberal MP James Newbury.

The centres include Liberal strongholds like Caulfield, where deputy party leader David Southwick's seat is located. Malvern, Prahran, and other areas have raised concerns over the distribution of new hubs. MP Michael O'Brien, retiring at the state election, has argued for a fairer approach. The government expects these plans to deliver over 300,000 new homes by 2051, but opposition leader Jess Wilson has criticized the program for lacking public input.

The draft maps are open for further consultation, and the government plans to finalize all 60 activity centre plans by mid-year. This initiative marks a significant step in Melbourne's urban development, aiming to address housing needs and shape the city's future.

Melbourne's Middle-Ring Suburbs Get a Makeover: 20-Storey Towers and New Activity Centres (2026)

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