Changes to Melbourne CBD planning controls to promote commercial office developments could support more than 9,500 Victorian construction jobs, according to new analysis produced by the Property Council of Australia.
Changes to C270 planning controls are essential if the future needs of Melbourne are to be met, the Property Council of Australia says.
The Premier of Victoria confirmed at a recent Property Council luncheon that changes to C270 planning controls are expected before the end of the year.
First introduced in 2016, Amendment C270 introduced mandatory requirements in relation to building setbacks and restrictions relating to plot ratios and shadow controls.
Property Council (Victoria) Executive Director Cressida Wall said the changes had caused new approvals of commercial developments in the CBD to plummet, leading to concerns about the pipeline of supply beyond the current cycle and the impact this will have on construction jobs.
"This position is untenable and changes to C270 to support commercial development are the release valve Melbourne urgently needs,” she said.
“Despite the additional office space that works currently underway will bring into the market, there is a real concern future needs will not be able to be met without changes to C270.”
The Property Council Office Market Report, released last week, shows once the current supply pipeline of office construction completes there aren’t any new schedule projects to support the ongoing CBD development.
Assuming the current pipeline of commercial office buildings in Melbourne’s CBD cannot be replaced with future projects because of C270 constraints, Property Council modelling predicts that over 9,500 jobs will be placed at risk.
“We applaud the Government’s announcement that changes to the planning controls will be announced before the end of the year, however, we remain hesitant until it is clear that changes will allow for the development required to meet Melbourne’s growing office demand,” says Ms Wall.
Click here to view the proposed amendment to the C270 planning controls.
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