The rezoning of residential land in Moe, which is hoped to bring affordable housing and a job boost, has been met with cautious optimism.
Last week, the State Government approved the rezoning of 228 hectares in Latrobe Valley including 15.1 hectares of land in Moe.
The rezoning aims to create about 2600 new housing lots in Moe, Newborough, Churchill, Morwell and Traralgon.
However, Latrobe Properties director Julie Reed said because the market was “absolutely desperate” for the land, the high demand may cause no reduction in property prices.
“We don’t have enough vacant blocks as it is, so hopefully (the land release) may give people options for staying in Moe,” Ms Reed said.
She said in the past five years Latrobe Valley had lost a significant amount of ratepayers to the Baw Baw Shire due to more affordable properties.
“I am selling more blocks in Trafalgar than here in Moe; I can’t believe we are losing our ratepayers,” Ms Reed said.
“Trafalgar has had an abundance of land releases in the last five years, and we have done nothing here in Moe except the odd little land release.” She said previous land releases were sold prior to being developed due to high demand.
“At least now if people are looking to build a new home, they won’t have to look into Baw Baw Shire,” Ms Reed said.
State Member for Narracan Gary Blackwood said the rezoned land was addressing Latrobe Valley’s low supply of residential land.
“This land release will be advantageous for the local economy and provide important jobs at an important time for the region,” Mr Blackwood said.
He said the rezoned land would “help keep the land at a more affordable cost”.
“In the past we have seen an increase in the price of land based on the lack of supply, now we have a situation where more land will be available for residential development so it should keep the price down,” Mr Blackwood said.
The amendment which has rezoned land from Rural Living, Low Density Residential and Farming to Residential One, between the Moe-Yallourn Rail Trail and Old Sale Road, has been “in the wind” for five years.
Mr Blackwood said subdivision was expected to take up to 12 months, although job growth in the construction industry would start immediately.
“The sub-division process that will create jobs immediately, (due to) the construction of the road network and services put in place,” he said.
Mr Blackwood said Moe and Newborough would be an “attractive” investment due to its close proximity to employment and lifestyle opportunities.
Committee for Moe president Manny Gelagotis said the land release would “open doors” for Moe to develop.
“In Moe we want to be a part of a vibrant expansion, not only in the town but across the entire valley,” Mr Gelagotis said.
“It opens up the window of opportunity for individual town growth as well because it will enhance local employment for construction companies and businesses.”
He said the land release would encourage people from surrounding regions to relocate because Moe would be a more attractive investment.
State Planning Minister Matthew Guy said future infrastructure needs were addressed through the local planning permit process which applied to the Development Plan Overlays.
Mr Guy said the rezoning would boost growth by encouraging more people to move from the city to the region.
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