The 2019 Australian Infrastructure Audit shows that much of Australia is under pressure due to unprecedented population growth and demand for infrastructure and services. No one is feeling the heat more than Victorians, with projected figures showing that Melbourne will be the largest city in the country by 2028, and home to over eight million people by 2050. Already, this pressure is affecting the city’s liveability – last year, Melbourne lost the title of most liveable city in the world for the first time in seven years – and without smart infrastructure planning, things will get worse.
 
There are two sides to the future planning debate: those who argue for the embrace of densification, and those who believe that the only way to take the pressure off metropolitan areas is by decentralising. No matter which side of the fence you sit on, both of these strategies can only work with proper infrastructure investment. Residents and councils alike are resistant to development, especially in inner Melbourne, but it’s not optional - the 2018-19 UDIA Residential Development Index shows that Melbourne’s share of Victoria’s overall population is expected to increase to 80.3 per cent in 2056 compared with 76 per cent in 2016. This shift is driving a more centralised Victoria, meaning we need a planning system and an infrastructure investment pipeline that will properly support this centralisation.
 
While there has been significant recent investment from the Federal and Victorian governments in headline-making projects, we need a long-term pipeline of state and local infrastructure projects that will ensure investment is made where we need it most. As it currently stands, the planning and approval system for urban development is sluggish at best, and full of risks and delays. This needs to change if we are to fully leverage the economic benefits of major infrastructure investment and private sector investment in local infrastructure.
 
To keep up with Melbourne’s projected population growth and demand for housing in particular, we need to build 175 new houses in Victoria every day, every year to 2056. These targets are critical due to the current undersupply of houses outlined in the 2018-19 UDIA Residential Development Index, which reports a significant decline in the supply of new dwellings in Victoria. The Andrews Government has mandated through their planning strategy, Plan Melbourne, that around 70 per cent of this new housing is to be accommodated in established suburbs. This will have obvious impacts: by 2031, the cost of road congestion is expected to double to $38.7 billion, and the cost facing public transport users in terms of crowding is forecast to more than quadruple, from $75 million to $352 million.
 
We have the plan for how Melbourne will grow and evolve, but where is the government’s plan for delivering the billions of dollars’ worth of local infrastructure to the communities that will feel this pressure most? Where is its plan to strategically spend the Growth Areas Infrastructure Contribution; where are the long-term local government infrastructure priorities? We need to ask these questions to ensure that planning and investment will support the urban development we need to keep pace with population growth.
 
What’s more, state infrastructure cannot sustain community growth without additional local infrastructure. Victoria’s fastest-growing communities need roads, schools, community centres and sporting facilities – it’s not just about big-ticket investments. And this is where the local government and the urban development industry does most of the heavy lifting.
 
In its current form, the system for planning, approving and delivering new infrastructure involves extensive time, cost and risk. The government needs to get real about addressing these roadblocks if we are to work together to improve local infrastructure and get the most out of investment in major infrastructure projects. Too much red tape around urban development limits the innovative and creative thinking needed to balance the demands of our existing and future communities. Urban development is a collaborative, iterative process that requires an ongoing conversation between policymakers, urban development professionals, planners and community members. By taking a facilitative approach to delivering investment in our urban areas, we can ensure that Melbourne continues to be the wonderful city that it is now, as it grows. 
 
The projected population figures are daunting to some, but they present an opportunity for Melbourne to transform into a truly global city. If city builders can work with a system that enables us to deliver the infrastructure and services we need Victoria’s communities will be better off. Future-proofing our state with smart infrastructure investment and a forward-looking approach to planning and development approvals will serve us for decades, even centuries to come. If we get this right, it will pay dividends long into the future.
 
Through good design, early infrastructure investment and an efficient planning and development approval system, the urban development industry will be able to do its part to create positive community outcomes and ensure the future liveability of our city. Urban development has countless benefits, such as delivering new spaces for businesses, improving community services in growing suburbs, building new education facilities and creating places where Melburnians find enjoyment and wellbeing.

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