The Victorian Coalition has pledged to sell off $1.3 billion worth of government-owned land, including a 775-hectare research farm, a CBD office block and a former hospital, as part of its plan to reduce state debt and accelerate housing construction ahead of this month's state election.
The policy, costed by the independent Parliamentary Budget Office, would also save $266 million in interest repayments over four years, the Coalition says.
The Coalition, seeking government in this month's state election, said the sale would supercharge housing construction and help repair the budget. The opposition has previously promised a $578 million windfall from selling the Melbourne Wholesale Fruit and Vegetable Market in Epping if it forms government.
Wilson said the government's handling of the land amounted to what she called “land banking”. “We'll divest surplus government land and get new housing projects moving as part of our team's plan to build more homes and repair the budget,” Wilson said. “Our plan means more land for new homes and economic development as well as a $1.3 billion saving for the budget.”
The East Werribee Employment Precinct is a 775-hectare former State Research Farm and the largest parcel of mostly undeveloped state government-owned land in Melbourne. Successive governments have earmarked it for housing and commercial development. The Coalition would also sell the former Footscray Hospital, which is being demolished, and a 10-storey office block at 565 Lonsdale Street in the CBD that houses the Office of Public Prosecutions.
The sale list also includes the Ballarat Saleyards site, the former Coburg North TAFE, and the former site of the Albion Explosives Factory in Cairnlea. Much of the land is zoned for mixed use.
The policy contrasts with Labor's approach, which encourages middle- and higher-density housing in established inner and middle-ring suburbs. Although Labor is well behind on its housing targets, Victoria has consistently led the nation in the rate of new home construction, Australian Bureau of Statistics data shows.
Maribyrnong City Council has called for the former Footscray Hospital redevelopment to include a large public park and for at least 30 per cent of homes to be social and affordable housing, as well as the Brutalist heritage-listed Footscray Psychiatric Centre to be reserved for community, arts and not-for-profit organisations. It is unclear whether those proposals will eventuate if the site is sold to a private developer.
Analysis
Why This Matters
- The plan could significantly boost housing supply in Victoria, which is facing a persistent shortage.
- Selling public land would help reduce the state's debt burden and interest costs.
- The sale of sites with community plans could override local council and community visions for the land.
Background
Victoria is grappling with a housing crisis and a large state debt. The upcoming state election pits the Coalition, led by Jess Wilson, against the incumbent Labor government. Both parties have put forward competing housing policies, with Labor focusing on density near existing infrastructure and the Coalition emphasising land release and greenfield development.
Key Perspectives
Opposition Leader Jess Wilson: Says the plan will divest surplus government land, build more homes and repair the budget, labelling the government's slow development as "land banking".
Maribyrnong City Council: Has called for the former Footscray Hospital site to include a large public park, at least 30 per cent social and affordable housing, and the heritage-listed psychiatric centre to be retained for community use.
Labor government (implied position): Has encouraged middle and higher-density housing in established suburbs; is behind on housing targets but Victoria leads in new home construction.
What to Watch
- The outcome of the state election: if the Coalition wins, the land sales will proceed.
- Whether local councils push back on site-specific plans, particularly for the Footscray Hospital and East Werribee sites.
- How quickly the sales can be executed, given many sites still require remediation and planning approvals.
Checked
12 claims in this story checked against 1 source: 10 supported.
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- SupportedThe Victorian Coalition pledged a $1.3 billion land sell-off to address debt and housing.Brisbane Times - Latest News: “Some $1.3 billion worth of state land would be sold off to developers under a Coalition pledge to pay down debt and unlock land for housing.”
- SupportedThe opposition says the sale would supercharge housing construction, and Wilson says the plan would repair the budget.Brisbane Times - Latest News: “Much of the land is zoned for mixed use, and the opposition says its sale would supercharge housing construction.”
- SupportedThe sale list includes a 775-hectare research farm, a CBD office block and the former Footscray Hospital.Brisbane Times - Latest News: “Opposition Leader Jess Wilson will unveil on Friday the Coalition’s plan to sell off government-owned land including 775 hectares in Melbourne’s outer-west, a 10-storey CBD office block used by the Office of Public Prosecutions, the former Footscray Hospital”
- SupportedThe policy was costed by the independent Parliamentary Budget Office and would save $266 million in interest repayments over four years, according to the Coalition.Brisbane Times - Latest News: “The policy has been costed by the independent Parliamentary Budget Office and would also save $266 million in interest repayments over four years, the Coalition says.”
- SupportedWilson said, “We'll divest surplus government land and get new housing projects moving as part of our team's plan to build more homes and repair the budget.”Brisbane Times - Latest News: ““We’ll divest surplus government land and get new housing projects moving as part of our team’s plan to build more homes and repair the budget,” Wilson said.”
- SupportedWilson said, “Our plan means more land for new homes and economic development as well as a $1.3 billion saving for the budget.”Brisbane Times - Latest News: ““Our plan means more land for new homes and economic development as well as a $1.3 billion saving for the budget.””
- Partly supportedThe Coalition had previously promised a $578 million windfall from selling the Melbourne Wholesale Fruit and Vegetable Market in Epping.Brisbane Times - Latest News: “Wilson has previously promised a $578 million windfall from selling the state-owned Melbourne Wholesale Fruit and Vegetable Market in Epping if the Coalition forms government after this month’s state election.”
- Not in the sourcesThe Ballarat Saleyards site is on the Coalition's sale list.Brisbane Times - Latest News: “The Ballarat Saleyards site covers 13.6 hectares and has been earmarked for a commercial precinct and housing.”
- SupportedThe East Werribee Employment Precinct is a 775-hectare former State Research Farm and Melbourne's largest parcel of mostly undeveloped state government-owned land.Brisbane Times - Latest News: “The East Werribee Employment Precinct, which is on Wilson’s list to sell, is the largest parcel of mostly undeveloped state government-owned land in Melbourne. Successive governments have earmarked the 775-hectare former State Research Farm site for housing and commercial development.”
- SupportedThe former Footscray Hospital is being demolished.Brisbane Times - Latest News: “Development Victoria is currently demolishing the former Footscray Hospital, after the opening of the new hospital earlier this year”
- SupportedMaribyrnong City Council called for at least 30 per cent of homes in the hospital redevelopment to be social and affordable housing.Brisbane Times - Latest News: “Maribyrnong City Council has called for the hospital redevelopment to include a large public park, and for at least 30 per cent of homes to be social and affordable housing.”
- SupportedIt is unclear whether the council's proposals will eventuate if the site is sold to a private developer.Brisbane Times - Latest News: “It is unclear if any of those proposals will eventuate if the site is sold to a private developer.”