The Impact of Amendment VC267 on Victoria’s Planning Landscape

At delcon design & construct, we recognise that change drives opportunity.

Amendment VC267, introduced by the State Government in February 2025 and effective from 31 March 2025, ushers in a new era for townhouse and low-rise apartment developments across Victoria. This reform streamlines planning processes and creates space for innovative, higher-density housing solutions.

Redefining Standards with a Fresh Perspective

Amendment VC267 transforms Clause 55 with key adjustments designed to refine development standards:

  • Street Setback Adjustments: The minimum setback is now reduced to 6 metres or matches the nearest building’s setback, replacing the previous 9-metre requirement.
  • Revamped Site Coverage Rules: New limits vary by zone—60% for Neighbourhood Residential and Township Zones; 65% for General Residential; and 70% for Mixed Use and Housing Choice & Transport Zones.
  • Enhanced Open Space Guidelines: Tree canopy coverage requirements now range between 10–20%, while private open space has been reduced to 25m² from 40m².
  • Flexible Overshadowing & Overlooking Standards: These changes offer developers more freedom, with apartment-style internal layout criteria now extending to all low-rise projects.

A Streamlined Pathway to Approvals

One of the most significant shifts is the removal of qualitative neighbourhood character assessments. Compliance now hinges on clear, measurable criteria—such as setbacks, building height, and site coverage—reducing approval timelines by up to 60%.

Fully compliant applications will even be exempt from third-party appeals at VCAT, though community feedback through council remains valued.

Implications for Melbourne’s Developments

This reform paves the way for larger, denser developments throughout Melbourne and regional towns, eliminating many discretionary barriers.

While some caution that the emphasis on measurable standards may risk the unique character of local design, we at delcon remain committed to thoughtful, bespoke developments that blend compliance with distinctive architectural integrity.

Navigating the Transition

Projects initiated before 31 March 2025 will follow existing standards, while new applications must align with the updated framework.

And yes, existing permits can be amended to meet these fresh criteria, reflecting the Government’s ongoing effort to address the housing crisis while balancing quality and growth.

At delcon, Our Commitment Remains Unwavering

We view Amendment VC267 as both a challenge, and an opportunity. Our focus, as always is on quality.

Our approach prioritises thoughtful design, where form and function work in harmony, and every project not only meets compliance standards but also enhances liveability.

By focusing on sustainable, high-quality outcomes, we aim to set a benchmark for housing developments that balance growth with enduring value and architectural integrity.

Looking for a high-quality, bespoke Melbourne property development builder?

Contact us at info@delcon.net.au or phone us on 1800 335 266.