Bombshell for homeowners and developers alike: Premier Jacinta Allan, Minister for Planning Sonya Kilkenny, and Minister for Housing and Building Harriet Shing announced that effective from 16 October 2025, the new VicSmart pathway can be assessed within 10 business days, a substantial reduction from the previous 60-day standard.
This means applications to build two homes on a single lot or split a property into two lots could get approved in just 10 business days. That’s a massive leap from the usual 60-day wait.
“This is a rare opportunity to rethink how we use the space we already have,” says Moxin Reza, property investor and CEO at Investor Partner Group. “Speed is appealing, but real impact comes when fast approvals also respect the rhythm and character of existing communities.”
Your Backyard Could Be Worth More Than You Think
The new rules target zones like Residential Growth, Neighbourhood Residential, and Mixed Use areas, opening doors for property owners to increase housing density without expanding into greenfields. Suddenly, that underutilised lot in your suburb isn’t just land, it could be a cash-generating asset or a home for someone looking to settle nearby.
“I’ve seen too many properties sit idle for years,” Reza observes. “Giving owners a clear, fast pathway to develop responsibly doesn’t just create homes, it revitalises streets, encourages diversity, and builds stronger local economies.”
Speed Doesn’t Mean Cutting Corners…Or Does It?
The VicSmart process promises rapid approvals, but don’t worry, it’s not a free-for-all. Homes must still meet siting, privacy, and design standards. Heritage and environmental protections remain intact. Yet, removing neighbour notifications and streamlining assessments could spark debate about whether fast approvals might compromise community input.
“Faster approvals can work, but only if they’re guided by a clear framework,” says Reza. “It’s not about rushing decisions; it’s about giving councils the tools to make good ones quickly. Otherwise, you risk undermining trust in the system.”
Granny Flats Were Just the Beginning
This move builds on the 2023 reforms that let you construct small second homes without a planning permit. Now, the game has shifted: homeowners can explore dual dwellings and two-lot subdivisions, giving families more options and diversifying the housing market. Multigenerational living? Check. Affordable rentals? Check. Smart use of land? Check.
“These reforms show that housing policy isn’t just about numbers,” Reza reflects. “It’s about understanding how people live, how families grow, and how communities evolve. Even small changes, like a second dwelling, can ripple out in ways that strengthen neighbourhoods.”
What This Means for Buyers, and What Comes Next
Victoria’s fast-tracked approvals aren’t just a policy tweak; they signal a broader push toward sustainable urban growth and housing affordability. But will it deliver the promised results? Keep an eye on how neighbourhoods evolve, how property values shift, and whether this sparks a new era of smart, high-density development.
“The real test will be whether these approvals lead to better outcomes, not just faster ones,” Reza concludes. “If done right, this could set a new standard for how cities grow, efficiently, thoughtfully, and in a way that benefits everyone.”
