State Planning Minister Matthew Guy says more than 1,000 new homes will be built when an industrial site in Melbourne’s inner-west is redeveloped.
The site is about 8 kilometres from the city and is close to transport links.
The announcement comes as the Bureau of Statistics released new figures showing Melbourne’s population has grown by more than 600,000 over the past decade.
Most of the growth has been in the city’s outer suburbs.
Mr Guy says the Bradmill industrial site in Yarraville is one of a number of developments planned to help the city accommodate the new residents.
“This is a key urban renewal opportunity for Melbourne,” he said.
“We have to make sure we have sites like Bradmill close to the city where we have urban renewal opportunities where people can buy a home.”
Mr Guy says Melbourne needs more medium density developments across the inner-city to deal with the population boom.
“That’s why we are looking at areas such as Port Melbourne, Fishermans Bend, Docklands North, places like the Yarraville site, to ensure growth isn’t just a singular growth,” he said.
Melbourne recorded the fastest rate of growth of any capital city during the last financial year, with the outer suburbs absorbing most of the increase.
Social welfare groups are concerned that governments are struggling to provide services to keep pace with the booming population.
The chief executive of the Victorian Council of Social Service, Cath Smith, says growth has outstripped government expectations.
“The fact that we’ve had ten per cent population growth in some of these growth corridors means that investment hasn’t kept pace,” she said.
“We need to see an urgent injection both in infrastructure, but also in human services.”