This version of the Melbourne Facts, November 2012 has been prepared for use with screen reader software.
The PDF version also available at www.planmelbourne.vic.gov.au is recommended for general access.
SECTION 1: MELBOURNE’S STORY
Melbourne is regarded as the world’s most liveable city.
Melbourne continues to be ranked as the World’s Most Liveable City and has been voted number one, two
years running.
We are also the 16th most globally competitive city in the world, demonstrating an ability to attract capital,
businesses, talent and visitors.
Image: Map of world’s most liveable cities
We have achieved this through careful planning.
1837
Robert Hoddle designed the CBD’s Hoddle Grid.
1929
Melbourne’s first strategic plan.
1954
Plan led to the planning scheme.
1969
Melbourne Transportation Study identified the future freeway network for Melbourne, including the City
Loop.
1971
Melbourne Metropolitan Board of Works plan introduced the green wedges.
1980
Metropolitan Board of Works Metropolitan Strategy sought to concentrate housing, transport,
employment and community facilities at highly accessible points.
1994
Creating Prosperity: Victoria’s Capital City Policy laid the path for central city revitalisation.
2002
Melbourne 2030 introduced an Urban Growth Boundary.
2009
Delivering Melbourne’s Newest Sustainable Communities reserved land for the Regional Rail Link,
Outer Metropolitan Ring (road and train corridor), and the land for grassland reserves in Melbourne’s
west.
Image: Images of previous planning policies front covers
The new Metropolitan Planning Strategy will help identify and implement Melbourne’s next city shaping
ideas.
Melbourne is a fast growing city
Melbourne continues to grow substantially faster than Sydney, with a growth rate in 2010-11 of 1.6%, to
Sydney’s 1.2%.
Over the past 50 years Melbourne’s population has doubled and over the next 30-40 years is expected to reach
6 million.
Out of the top 10 most liveable cites, one is over 6 million and only three are over 2 million.
As a city of 6 million we will face new challenges.
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Challenge: What will and won’t we be able to do in a city of 6 million people?
Image: Historical and Projected Population, Victoria, Melbourne SD and Regional Victoria, 1991-2051
Image: Growth in Population for Australian Cities
As well as growing, our population is changing.
The proportion of people aged over 65 is expected to double and people 85 years or over is expected to
quadruple.
As the population ages, there is projected to be a lower proportion of families with children and a higher
proportion of lone person and couple-only households.
Currently one-in-three Melbourne households is a family with children. By 2051 this is expected to decrease to
one-in-four.
As the average household size gradually decreases, the number of households is projected to exceed the rate of
change in the population. It is anticipated over the next 30-40 yrs Melbourne may require 1 million more homes.
Continuing current trends is unlikely to provide sufficient homes for these changes
Challenge: What do we need to change to provide for a changing population?
Image: Current and Projected Number of Persons by Household Type, Melbourne, 2011 and 2031
Image: Population by Age and Sex, Melbourne SD, 2010 and 2030
Our changing population will require a mix of homes at a range of prices.
Diversity in communities is fostered through a mix of housing that suits different population groups at different
stages of their lifecycle. Two factors have the potential to significantly impact on this type of diversity in local
areas: affordability and a lack of dwelling choice.
Housing Types
Up until now about half of all new housing in Melbourne has been constructed in the established areas. Between
2004-2008 around 70% of homes built in the established areas were detached houses, villas or townhouses. In
many suburbs traditional detached homes will have surplus bedrooms. The new residential zones provide a good
starting point, however community feedback via councils will be critical.
Housing Affordability
Decreasing housing affordability is affecting some people’s housing location choice and their ability to age in
place and maintain their social connections.
Since 2000 the median house price has almost tripled, increasing from $190,000 to $500,000 in 2011 and the
median weekly rent for a three bedroom home in Melbourne has increased from $190 per week to $340.
Affordable opportunities for low to moderate income first home buyers and renters have become increasingly
limited to Melbourne’s outer suburbs.
Challenge: How can we encourage more diverse homes in the established areas?
Image: Income required to purchase median house (Couple with 2 children)
Image: Proportion of Different Dwelling Types by Region, 2011: Metropolitan Melbourne (occupied private
dwellings)
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Our changing population will need new jobs in a wider mix of locations.
Employment densities and locations vary according to job type.
The inner area of Melbourne is a key focus for the location of white collar employment, particularly the CBD and
the inner to mid eastern suburbs.
There are comparatively few white collar jobs in the outer suburbs and the western and northern suburbs.
Blue collar jobs are associated with industrial areas in outer suburban locations, particularly Laverton North,
Dandenong and Hume.
These clusters of employment are major contributors to our productivity and global competitiveness.
Challenge: How can we attract different kinds of employment to areas that are traditionally white or blue
collar to provide more choice?
Image: Location of Blue Collar Jobs by SLA, 2011
Image: Location of White Collar Jobs by SLA, 2011
Victoria is a compact state
Victoria is Australia’s most compact mainland state. Almost three-quarters of Victoria’s population live in Greater
Melbourne.
Over 82% of Victoria’s population live within 100 kilometres of the Central City
Nearly nine out of ten Victorians (89%) live within 150km.
This compares with 79% of the population of New South Wales and 72% of the population of Queensland, living
with 150km of the central business district of the state capital
Image : graphic of population density in 100km and 150km ring
…And Melbourne is Australia’s second most dense capital city.
Melbourne is Australia’s second most dense capital city, with an average of 1,520 persons per square kilometre
(p/sqkm) across the built up area.
Sydney is 30% more dense, at 2,020 p/sqkm.
Further afield, Melbourne’s density is comparable to Chicago or Vancouver, but lower than most European
centres.
Assuming Melbourne’s population growth over the next forty years is accommodated within the Urban Growth
Boundary, density will increase to over 2,200 p/sqkm by 2051.
In other words, by 2051, Melbourne will be more dense than Sydney is today.
Image: Comparison of the density of people located in Melbourne and Sydney
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The availability of jobs for local residents is a key driver of sustainability.
Working locally is a key issue, however the majority of residents work in their local catchment, not in the inner
area as many may think.
Journey to work data shows that around 65% of people now travel to work in their own or neighbouring region.
The key issue is that a large proportion of people use their car to access employment. Even very short trips
under one kilometre in the outer suburbs are made by car.
Around 90% of people in the outer areas and 40% of people in the inner areas drive to work.
Challenge: How can we improve local connections to reduce car dependency for journey to work trips?
Image: % of persons working in own or adjacent LGA, 2011
Image: Private Vehicle to Work Usage in Melbourne, 2011
Planning for growth should consider our work/life balance.
The first of the baby boomers reached retirement age in 2011 and the demographic trend will last for around 20
to 30 years.
In 2011, for every person over the age of 65 there were around five people of working age. By 2041 every older
person will be matched by only three working aged people.
This will create new pressures related to balancing work and caring responsibilities and we can no longer view
social issues as separate from economic issues.
Balancing Work and Caring – Case Study
A large study conducted by the Centre for Work and Life across ten Australian outer and growth suburbs from
2006 to 2009 found the separation of residential areas from areas of employment meant some residents took
lower skilled jobs closer to home in order to meet the family’s caring responsibilities. This particularly affected
highly educated and skilled women.
These pressures on families in balancing family responsibilities with distance to work are likely to increase as
both the number of older persons and children and young people, increase in outer areas.
Challenge: How can we support areas where ageing and caring will have a significant impact on people’s
ability to work ?
Image: Projected changes in number of children (age 0-17), Melbourne, 2011 to 2031
Image: Projected increases in people aged 65 and over, Melbourne, 2011 to 2031
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SECTION 2: Outcomes for the Metropolitan Planning Strategy.
The Victorian State Government’s Ministerial Advisory Committee developed nine strategic principles to guide
the development of Melbourne.
Based on the principles, a Discussion Paper has been developed which explores the options for Melbourne’s
future and identifies a number outcomes and directions for making them happen:
What we want to achieve:
A distinctive Melbourne
Throughout its history Melbourne has responded to new challenges and opportunities by building on the best of
its past, looking to the future and developing its own unique identity.
A globally connected and competitive city
Melbourne is inextricably linked to the global economy through trade, people and the flow of information and
ideas. To remain competitive in the decades ahead, Melbourne needs to improve its productivity.
Social and economic participation
Social issues affect a person’s capacity to contribute to the economy and the community. If not addressed they
will put a handbrake on productivity or impose direct costs on society such as increased health and welfare
services.
Strong communities
Connection to family, friends and neighbours across generations is important to building strong communities and
promoting wellbeing. We must reinforce the elements that create strong and caring local communities.
Environmental resilience
Melbourne needs to be environmentally resilient. We need to be able to respond to changing environmental and
climate conditions and ensure development does not undermine natural values.
What needs to change:
A polycentric city linked to regional cities
Idea 1: Growing the Central City as the anchor of a world city
Idea 2: Building national employment and innovation clusters
Idea 3: Unlocking capacity in established suburbs
Idea 4: Providing a transport system for Melbourne’s future
Idea 5: Strengthening the green edge to Melbourne
Idea 6: Building a state of cities
Idea 7: Extending Melbourne boulevards: a civic legacy
Living locally – A ‘20 minute’ city
Idea 8: Delivering jobs and services to outer area residents
Idea 9: Providing diverse housing in the right location at a reasonable price
Idea 10: Improving the environmental performance of suburbs
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Making it happen:
Infrastructure investment that supports city growth
Idea 11: Using investment to transform places
Idea 12: Moving to a place-based focus for programs
Idea 13: Identifying a long-term framework for metropolitan infrastructure
Leadership and partnership
Idea 14: Developing partnerships and agreements
Idea 15: Developing good governance structures and processes
to deliver the Strategy
Idea 16: Setting targets, measuring progress and publishing indicators.
Planning for our future needs must not compromise our liveability and distinctiveness.
Melbourne is one of the world’s great Victorian-era commercial cities. We have high quality public spaces, rich
heritage, parks and gardens, an array of cultural institutions and an enviable calendar of national and
international events.
Through all its phases of development Melbourne has built on the best of the past while looking to the future, and
has developed a special vibe and character of its own.
Being a distinctive city creates a good setting for global competitiveness.
Image: Open space in Melbourne. There is high level of access to open space in Melbourne with 93% of
dwellings within 400 metres of some form of open space.
Image: Melbourne has a tradition of conserving the valued heritage aspects of areas.
SECTION 3: Ideas for the Future
The ideas in the Discussion Paper highlight a number of opportunities the government can build on to maximise
our assets and maintain Melbourne’s distinctiveness and liveability.
Opportunities:
REINFORCING THE CENTRAL CITY AS A WORLD CITY – by creating an arc of urban renewal around the
Central City, extending from Fishermans Bend to Footscray.
CREATING GLOBAL EMPLOYMENT CLUSTERS – by focusing investment on key employment and freight
areas, such as Monash, the Airport and Parkville.
BUILDING A STATE OF CITIES – by investing in regional cities CBDs and supporting transport links between
and around centres, such as Geelong, Bendigo, Ballarat and Latrobe.
DEVELOPING LOCAL SOLUTIONS FOR SUBURBAN PLACES – by utilising the established areas to
encourage the right development in the right locations at the right price, ensuring local solutions for suburban
areas.
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CREATING OPPORTUNITIES AND CONNECTING COMMUNITIES – by improving transport connections,
especially walking, cycling and local buses, to existing services.
A LEAVING A LEGACY – by expanding the legacy of urban design through a new network of boulevards and
maintaining a hard green edge to the urban area.
MAKING IT HAPPEN – by exploring new funding models and partnerships for infrastructure delivery.
Reinforcing the Central City as a world city.
MAC Idea 1: Growing the Central City as the anchor of a world city.
One of Melbourne’s competitive advantage is the amount of land available for redevelopment in strategic Central
City locations, such as Fishermans Bend, E-Gate and the Arden Precinct.
These urban renewal opportunities are at a size and scale not experienced in any other Australian city.
This provides us with a unique opportunity to create a world class Central City with new transport connections,
attractive neighbourhoods and employment centres.
Work is already underway with the introduction of the Central City Zone and rezoning of 240 hectares in
Fishermans Bend.
Urban renewal plays a significant role in accommodating growth in Melbourne.
In the period 2004 to 2010, a quarter of new dwellings built in the established areas were in urban renewal
projects.
Opportunity: Melbourne’s Central City urban renewal has the ability to influence long term views of other
areas, such as Central Activities Areas, acting as a catalyst for similar urban renewal projects.
Creating global employment clusters.
MAC Idea 2: Building national employment and innovation clusters.
One of Melbourne’s strengths is the number of suburban job clusters that are nationally significant places of
economic activity and innovation. These areas provide an opportunity to use the economy as the organising
element of the city.
Expanding suburban job opportunities – The Monash-Clayton and Melbourne Airport precincts, along with the
biosciences precinct in Parkville are globally significant employment and innovation clusters and have the
potential to grow and service a broader area.
Supporting a world class freight city – The establishment of the Western Intermodal Freight Terminal – a new
interstate rail terminal in Melbourne’s west – will allow relocation of domestic intermodal freight handling from
South Dynon and create a more efficient port.
Planning for the Port of Hastings as an international container port, including planning for transport links such as
the Western Port Highway, will also improve our freight handling abilities. Over the longer term the west is well
suited to boost its freight and logistics role, with the Outer Metropolitan Ring transport corridor, Avalon Airport
and potential port development reinforcing one another to deliver significant benefits. The Victorian Government
is currently developing a long-term freight plan with a focus on how to efficiently move goods around Melbourne.
Opportunity: In addition to Monash, the Airport and Parkville, Melbourne may have the potential to create
other employment and innovation clusters such as in the West.
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Image: Map of Melbourne and employment clusters
Building a state of cities.
MAC Idea 6: Building a state of cities.
Metropolitan Melbourne is only one part of the settlement choices available in Victoria and we have an arc of
regional cities, such as Geelong, Bendigo, Ballarat and Latrobe City.
Previous planning has focused on connecting these centres to Melbourne and we benefit from strong road and
rail linkages. We have the opportunity to further improve connections to Melbourne and the connections between
regional cities and their surrounding communities – driving regional economies, attracting investment and
providing lifestyle choices for our growing population.
We also have the opportunity to invest in the CBDs of regional cities to attract more investment and people.
Work is already underway with the Regional Growth Fund and Regional Growth Plans.
Opportunity: Regional cities could provide an alternate solution to Victoria’s long-term population
management, providing an alternate lifestyle choice.
Image: Map of regional Victoria and commuting distance
Developing local solutions for suburban places.
MAC Idea 3: Unlocking capacity in established suburbs.
MAC Idea 9: Providing diverse housing in the right location at a reasonable price.
Neighbourhood character is important and areas with valued characteristics need to be protected. We need to
find local solutions for suburban places, ensuring people have access to appropriate housing in the right location
and at an affordable price.
Up until now about half of all new housing in Melbourne has been constructed in the established areas. Work by
the Grattan Institute shows there are ‘shortages’ of semi-detached dwellings and apartments in middle and outer
areas of Melbourne.
We are beginning to see different types of homes being built in the established areas, however on average
homes cost on $131,400 more to build in these locations than equivalent greenfield dwellings, principally due to
higher construction costs.
Challenge: How do we reduce the costs of developing homes in the established areas?
Challenge: How can the new zones help encourage greater diversity in dwelling choice?
Opportunity: The established areas of Melbourne may be able to provide well-located and more
affordable homes for the changing population.
Image: Distribution of housing types 2004-2008
Image: Costs of developing infill and Greenfield dwellings, Melbourne
Connecting communities and creating opportunities.
MAC Idea 4: Providing a transport system for Melbourne’s future.
MAC Idea 8: Delivering jobs and services to outer area residents.
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Meeting our daily needs within around 20 minutes travel is about ensuring areas are well serviced and have
good transport connectivity, especially walking, cycling and local buses. One way to support living locally is by
integrating transport and land use - moving people closer to transport services, and bringing transport services to
people.
There are opportunities to achieve these by focusing development around industrial areas near railways stations.
Opportunity: Making the most of industrial land around rail corridors can create better access to jobs
and services.
Image: Example of Industrial Lands Around Rail Stations (Northern areas)
Leaving a legacy.
MAC Idea 5: Strengthening a green edge to Melbourne.
MAC Idea 10: Improving the environmental performance of suburbs.
While Melbourne has a’ hard edge’ planning boundary between urban and rural areas – the Urban Growth
Boundary – this boundary is not always reflected in the character of non-urban areas. Melbourne can strengthen
its ‘green wedge’ planning approach with a ‘green edge’. It should be obvious where Melbourne stops and rural
areas begin.
Opportunity: We need to consider if Melbourne’s footprint is sustainable in regards to access to jobs,
housing costs and environmental impacts.
Image: Melbourne’s strategic natural assets
Leaving a legacy.
MAC Idea 7: Extending Melbourne’s boulevards – a civic legacy
Our ornate buildings, boulevards and high streets, expansive inner city parks and gardens and a vibrant street
life contribute to our distinctiveness. There are opportunities to expand this legacy of urban design to our
suburban areas, creating a new network of grand boulevards and greening the city.
Image: Artist impression of boulevard
Making it happen.
Funding and Investment in long-term plans
MAC Idea 11: Using investment to transform places.
MAC Idea 12: Moving to a place-based focus for programs.
MAC Idea 13: Identifying a long-term framework for metropolitan infrastructure.
There is a clear desire to identify a comprehensive vision for the transport system, in a similar way to how the
road plans in the 1960s identified a long-term vision. However, we can’t keep funding the way we have been and
we need to explore new approaches.
Possible funding mechanisms include:
• development contribution changes
• user pays
• assets sales
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• value capture.
Opportunity: We need to explore new funding models and implementation plans with our partners and
the community for infrastructure delivery.
Image: Community infrastructure funding preferences
Making it happen (cont’d).
The Government has a range of committed and prioritised infrastructure projects, planning projects and policy
reforms which seek to retain Melbourne’s high ranking in global surveys on the liveability of cities and enhance
Melbourne’s productivity and adaptability to economic change through:
• Identifying urban renewal projects in an expanded Central Melbourne
• Statutory planning reform
• Growth Corridor Plans
• Freight policy development
• City-shaping project prioritisation via the Infrastructure Australia submission process
Image: Infrastructure Australia Priority Projects
Making it happen (cont’d).
Leadership, Partnerships and Monitoring
MAC Idea 14: Developing partnerships and agreements.
MAC Idea 15: Developing good governance structures and processes to deliver the Strategy.
MAC Idea 16: Setting targets, measuring progress and publishing indicators.
The COAG Reform Council listed the necessary ingredients for capital city planning. It stated ‘the way we
undertake our strategic planning for cities needs to change.‘ Partnerships between Commonwealth and State
Governments, State Government and local councils, public and private sectors, councils and their communities,
are fundamental ingredients to achieve a positive future for Melbourne.
Opportunity: We need to explore new partnerships and governance structures.
Image: Graphic of the partners involved in planning Melbourne.
SECTION 4: QUESTIONS
Have your say.
Thinking about the future raises many challenges and choices if Melburnians are to share the benefits of growth
and development, as well as the responsibility for delivering these benefits to the metropolitan community.
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The community and key stakeholders will be asked to consider the trends and ideas in the Discussion Paper and
provide comments through meetings, submission and events. Comments close on 1 March, 2013.
The Discussion Paper asks the community:
Question 1 What do you think of the outcome principles?
Question 2 What do you think is needed to achieve the outcome principles?
Question 3 What are the key ingredients for success in achieving the vision of an expanded Central City?
Question 4 What do you think of the idea of identifying and reinforcing employment and innovation clusters
across Melbourne?
Question 5 What is needed to support growth and development in regional cities?
Question 6 What do you think of the idea of a ‘20 minute city’?
Question 7 How can established suburbs accommodate the needs of changing populations and maintain what
people value about their area?
Question 8 How do we ensure a healthy and sustainable environment for future generations?
Question 9 What do you think about the possible ways of funding infrastructure?
Question 10 How can all levels of government, business and community work together to create the city you
want?
Visit www.planmelbourne.vic.gov.au
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