- 27 Feb 2025
- By API Magazine

The final 25 train and tram zones where the Victorian Government is changing planning rules and increasing housing density in Melbourne have been revealed.
Another 25 areas have been revealed as the targets in the Victorian Government’s push for greater density in Melbourne’s housing market.
The latest areas that were revealed Thursday (27 February) by Premier Jacinta Allan and Planning Minister Sonya Kilkenny are part of a long-term plan for 300,000 new homes to be built around train and tram lines, jobs and services by 2051.
Among the last of the hubs named were inner suburbs South Yarra and Prahran, inner-northern communities such as Brunswick and Thornbury, and outer suburbs like Dandenong.
More than half of the new locations for housing infill in the form of increased high-rise development are in the inner and outer south-east, along the Cranbourne/Pakenham, Frankston, Glen Waverley, Sandringham and Alamein train lines.
Premier Allan said is a statement that in 2025 they are expanding the Activity Centres Program to include another 50 train and tram zones where there is good access to public transport, jobs and services.
“The locations of these centres have been chosen based on an analysis of transport capacity, market viability, access to jobs and services, and environmental considerations.
“These 50 train and tram zones will give more Victorians the choice of a home that’s close to public transport.
“We’re finalising our plans for the first 10 activity centres.
“The expanded 50 train and tram zones are located close to stations that will benefit from the Metro Tunnel and well-serviced train and tram lines.”
Where are the new Activity Centres?
The latest 25 centres are located close to stations that will benefit from the Metro Tunnel and the well-serviced Frankston, Sandringham, Lilydale and Glen Waverley Lines. This includes:
- The future Sunbury to Cranbourne/Pakenham Line using the new Metro Tunnel: Carnegie, Hughesdale, Murrumbeena, Oakleigh, Middle Footscray, West Footscray and Tottenham stations.
- Lilydale Line: Hawthorn, Glenferrie, Auburn, Blackburn, Nunawading and Mitcham stations.
- Frankston Line: Toorak, Hawksburn, Armadale and Malvern stations – plus Toorak Village on the Route 58 tram.
- Sandringham Line: North Brighton, Middle Brighton, Hampton and Sandringham stations.
- Glen Waverley Line: Tooronga Station, Darling Station, plus a combined centre covering both Gardiner and Glen Iris stations.
Speaking at a press event in Noble Park, Ms Allan said “we need to also shake up the planning system”.
“We will be going street by street, block by block, looking at where we can — with those councils — to unlock that unused space that’s sitting there.”
‘Important initiative’ or ‘urban dystopia’?
Property Council Victorian Executive Director Cath Evans said that in order to support the density increases required, they would advocate for the establishment of ‘Special Economic Zones’ in activity centre precincts, which will deliver targeted and necessary tax concessions, ensuring that new homes can be built reliably and affordably.
“Activity centres are an important initiative which will facilitate the growth of much-needed housing supply and boost affordability across metropolitan Melbourne.
“While activity centres enhance Victoria’s urban growth potential, ensuring adequate infrastructure is essential.
“To accommodate accelerated population growth, a comprehensive, forward-looking strategy is needed to ensure that schools, healthcare facilities, and recreational spaces are introduced at the right time,” she said.
Opposition housing spokesman Richard Riordan said the plan did nothing to address affordability.
He told media that the government was showing “blissful ignorance” and it would make Melbourne a “dystopia”.
Mr Riordan argued the government should be building public housing on crown land and relieving taxes to encourage residential construction.
Height limits will vary in different precincts and the planning process for multi-storey residential dwellings fast-tracked from up to five years to as little as 12 months.
A government statement said that through the program of 50 new Activity Centres, the vision is for taller buildings in the immediate ‘core’ where the train station and built-up commercial centre is located.
“In areas where the train station is very residential, the core could be very small, with more modest height limits compared to larger stations.
“In the walkable ‘catchments’ up to 800 metres surrounding the core, the vision is for gentler, scaled height limits and more low-rise apartments and townhouses alongside existing homes.”
Article Q&A
What is the Victorian Government doing to address the housing crisis?
The Victorian Government is planning for more homes in and around 60 train and tram zones across Melbourne, encouraging more than 300,000 new homes to be built around train and tram lines, jobs and services by 2051.