The reports highlighted significant demand for industrial and residential zoned land across Greater Shepparton due to the population increase and significant investment across the region in recent years, as well as the impact of the pandemic.
The reports noted at the Council Meeting are a continuation of the Urban Development Program (UDP), commissioned by the former Department of Planning and Community Development in conjunction with Council, from 2011, which was undertaken by Spatial Economics Pty Ltd. Spatial Economics Pty Ltd was subsequently engaged by Council in 2016, 2019 and 2021 to update the UDP, as funding was no longer provided by the Victorian Government, maintaining the original document’s format to undertake regular reviews of the supply and demand for residential and industrial land across Greater Shepparton.
The UDP was updated to assess the supply and expected demand for residential and industrial land in October last year. It uses a normal and high growth scenario to test the reliability of Greater Shepparton’s planned land supply. It estimates that there is only eight to 14 years’ worth of zoned residential land across Greater Shepparton. However, it also considers that this is an over-statement, as some of this land may not be available as land supply due to significant land development constraints, fragmentation, planning issues, and existing uses operating on the land and not wishing to develop.
Overall, the residential report considers that these factors will have a significant impact on land supply leaving only approximately five years’ worth of zoned land. Ideally, the market would have access to 15 years’ worth of zoned residential supply.
The report estimates only a slightly better outcome for industrial land in Greater Shepparton. There is between eight to 15 years’ worth of zoned supply for industrial use. In addition, there is a 14 to 25 year supply of industrial land identified, but not yet zoned, for future use.
The report also warns that the estimation of eight to 15 years masks the current lack of zoned industrial land across Greater Shepparton. The industrial report considered that there are currently insufficient zoned broad hectare land stocks to meet the requirements in the medium to long term. This is a result of Greater Shepparton experiencing a high level of industrial activity over the past few years.
Council has been aware of this growing trend and, in recent years, has invested significant funds to accelerate the planning for several industrial and residential growth corridors; however, it can take at least three to five years for this work to result in additional zoned land.
Residential projects include the Kialla North Growth Corridor, the Kialla West Growth Corridor, the Shepparton South East Precinct and the Tatura Structure Plan, which are expected to house the bulk of the region’s future population growth.
Industrial projects include three new industrial growth corridors at Lemnos, Mooroopna and Shepparton North, which along with GV Link, will cater to the bulk of expected industrial demand for land.
This latest UDP follows Council’s engagement of Spatial Economics Pty Ltd in August 2020 to assess whether the areas identified for future residential and industrial development in the Shepparton and Mooroopna 2050: Regional City Growth Plan (2050 Growth Plan) were adequate. A number of submissions to the 2050 Growth Plan had questioned the adequacy of areas identified for future industrial and residential growth to meet expected demand. The report found that even under a higher than expected growth scenario, Shepparton and Mooroopna have sufficient residential land (zoned and identified/unzoned land) to satisfy demand until 2050.
Mayor, Councillor Kim O’Keeffe said that due to the increase in population and the significant investment across Greater Shepparton in recent years, particularly during the pandemic, the supply of zoned industrial and residential land has fallen sharply.
“This has resulted in a greater than expected demand for land,” she said.
“Council has already reacted to this need by allocating significant additional resources following its consideration of the 2019 Urban Development Program report in planning for several new industrial and residential growth corridors, which will cater for the bulk of future demand for industrial and residential zoned land.
“These new growth corridors will address the supply shortage for both residential and industrial zoned land, and we expect to see early results from this work from 2023.”
Council also resolved to write to the Minister for Planning to provide additional resources to the Victorian Planning Authority, to provide assistance to Council to increase the amount of industrial and residential zoned land in the short term.
The updated reports can be found on Council’s website here: greatershepparton.com.au/ strategic-strategies-and-reports/urban-development-program
