Victoria’s planning reforms are contributing to a significant increase in townhouse and low-rise housing applications, with new figures showing applications have risen by almost 50 per cent since the introduction of the Townhouse Code.
Applications increased from 4,800 homes to 7,000 homes in the year following the code’s introduction in March 2025.
The strongest growth was recorded across Melbourne’s middle suburbs, where planning permits increased from 2,000 to more than 3,100 homes over the same period.
Among metropolitan councils, Monash recorded 515 homes, followed by Merri-bek with 452 homes, Banyule with 402 homes and Darebin with 345 homes.
Regional Victoria also experienced strong growth, with Greater Geelong recording 664 homes and Greater Bendigo recording 166 homes.
The Townhouse Code provides a streamlined planning pathway for duplexes, townhouses and low-rise apartment developments of up to three storeys.
The code includes requirements relating to sunlight access, tree canopy coverage, open space, building layout, bedroom sizes and privacy protections.
Projects that meet the prescribed standards can progress through the planning system more quickly, helping to accelerate housing delivery.
The Townhouse Code forms part of the Victorian Government’s broader housing reform agenda aimed at increasing housing supply in areas close to jobs, transport and services.
Victorian Minister for Planning, Sonya Kilkenny, said the increase in applications demonstrated the impact of the reforms.
“Thousands more townhouse applications in a year shows our reforms are working,” Kilkenny said.
“These reforms are about giving young Victorians and families more housing choice in the communities they love.”
