THE latest significant increase in Latrobe Valley's land supply has been welcomed as just reward for the "extreme confidence" developers have in the area's future.
This release is expected to see a further 2600 residential lots available across 228 hectares of rezoned land.
At the same time the Urban Development Institute of Australia welcomed the decision as one which would "help provide a release valve to take the increasing population pressure off Melbourne and its expanding fringe suburbs".
Today the State Government is expected to gazette the rezoning of 115.9 hectares in Traralgon, 53.5 hectares in Churchill, 37.8 hectares in Morwell and 15.1 hectares in Moe and Newborough, for future residential development.
The land has been rezoned under Latrobe City Council's Planning Scheme Amendment C58.
Though the government announced the land release on Monday, information on the land's location cannot officially be made public until it has been gazetted. However, yesterday State Member for Morwell Russell Northe told The Express which areas had been proposed for rezoning as part of the latest planning amendments requested by council.
It is understood the key parcels of rezoned Traralgon land will be at its eastern end around McNairn and Melrossa roads and around Landsdowne Street and Retreat Road.
This would allow "a normal, natural expansion of residential areas", Mr Northe said.
The 53.5 hectares proposed for rezoning in Churchill included an area around McDonald Way and Matthews Road as well a precinct of land opposite the former Acacia Way service station, at Churchill's entrance, and down towards the Churchill Soccer Club.
It is understood the area to be rezoned in Morwell is at the northern end of Crinigan Road near Alexanders Road, while the 15.1 hectares in Moe/Newborough will be near Old Sale Road and Haigh Street, abutting the Moe-Yallourn Rail Trail.
The State Government said the most recent planning amendment followed last year's release of 562 hectares of land supply, bringing the potential number of new homes in the region to 6500 across almost 800 hectares.
State Planning Minister Matthew Guy said the government had addressed "the Valley's low supply of residential land" in less than a year, contributing to "a greater housing affordability and diversity".
Mr Northe said the land releases would help alleviate concerns in the local construction industry about the lack of available land.
"Developers in and around the Latrobe Valley and wider Gippsland are the ones ultimately investing in the region and they are extremely confident of our future and continued growth and expansion, despite the challenges," he said.
"The majority of these landowners and developers are locals and that augers well for the future from a building and construction perspective," Mr Northe said.
"One of the challenges we have encountered over the years is that a number of tradespeople have worked in other areas because building activity has slowed generally," he said.
"This will supply an enormous boost for both tradespeople and retailers who have also been doing it tough because of a downturn in housing construction."
Mr Northe said the "natural progression and expansion" of residential areas in Warragul, Drouin and Trafalgar had seen those towns experience "enormous growth" and that the Latrobe Valley was likely to be next in line due to its housing affordability.
His comments were supported by the UDIA which pointed to a June quarter 2011 market report stating this area had one of the lowest median house prices in Victoria, at $199,500, compared with Melbourne's median house price of $550,800.
It is the second time this year the Latrobe Valley has been identified by national property and development experts as an area for potential growth due its proximity to Melbourne and cheap land and houses.
Email a friend