Investor insights:
What demographics, density & development reform mean for investors

Victoria is on track to add 1.2 million residents over the next decade — the largest increase of any state and almost a third of Australia's total projected population growth. At the same time, household sizes are shrinking, people are living longer, and multi-generational living is on the rise.

Against this backdrop, the Victorian Government is pursuing sweeping planning reforms designed to accelerate housing delivery — a move that could alter feasibility, supply pipelines and competitive dynamics across key markets.

Local planning updates would be streamlined, allowing councils to adjust zoning more efficiently.

Planning reform and the supply challenge
To tackle mounting population pressure and supply bottlenecks, the Victorian Government has introduced the Planning Amendment (Better Decisions Made Faster) Bill 2025, which is currently before Parliament. If passed, the reforms aim to cut red tape and speed up approvals — with targeted timeframes ranging from 10 days for stand-alone homes and duplexes, to 30 days for townhouses, and 60 days for larger apartment buildings. This compares to the current average of 140 days, which can stretch beyond 300 days when objections are lodged.

The Bill would also revise appeal rights, removing third-party appeals for smaller projects while limiting appeals on higher-density developments to directly impacted neighbours. Local planning updates would be streamlined, allowing councils to adjust zoning more efficiently.

Jellis Craig CEO Andrew McCann says reducing delays and streamlining approvals is a critical step in addressing Victoria's supply challenges.

"For investors, this proposed reform provides clear signals about how and where density will be prioritised, while reinforcing the value of established assets in supply-constrained locations," he says.

What the population surge means for housing
In the next 10 years, Australia's population is set to grow by 4 million people - with Victoria alone projected to welcome 1.2 million new residents, accounting for 30% of the nation's total growth. However, population growth alone does not capture the full story for investors. According to Mark McCrindle, household composition is also shifting.

"As couples have fewer children, with birth rates at record lows of 1.5 children per woman, the future of housing will see the provision of smaller dwellings," he says. "Yet there is also a counter trend based on increased life expectancy, now edging into the late 80s."

For investors, the rise in multi- generational households translates into opportunities for homes that are accessible, adaptable, and suitable for extended-family living.

"The property market will see variously sized affordable apartments to suit not only younger first-home buyers, but different family sizes, as well as higher- end apartments for downsizers and urban professionals," he says.

While affordability will remain a key theme in the decade ahead, Mr McCrindle says location, lifestyle and proximity to work will also become increasingly important.

"The affordable land and home packages will have a place on suburban fringes alongside strongly performing inner-ring suburbs," he says.

"There will still be lifestyle acreage and regional town dwellings needed for those looking for the quieter life outside the cityscape."

Mr McCann says demographic change is already shaping leasing demand and buyer enquiry across the Jellis Craig network.

Apartments and townhouses in established suburbs increasingly reflect how Victorians want to live, signalling a shift in lifestyle priorities and housing choices.

He says key takeaways for investors centre on several interconnected trends shaping Victoria's property market. Elevated rental demand driven by ongoing population growth will continue to sustain a tight leasing market, while dwelling preferences are evolving in significant ways. Apartments and townhouses in established suburbs increasingly reflect how Victorians want to live, signalling a shift in lifestyle priorities and housing choices.

Established areas retain their appeal, with growth continuing to favour suburbs that offer strong infrastructure, transport connections, and employment access. Even with planning reform on the horizon, supply pressures are expected to support property values, as new housing delivery is unlikely to meet demand in the short to medium term.

"For investors, the opportunity lies in understanding not just how many people will arrive, but how they will choose to live — and positioning assets accordingly," he says.