Altona North Rezones Industrial Land to Residential, Tightens Height Limits

Altona North's 67-hectare industrial precinct is transitioning toward residential and mixed-use development under a Comprehensive Development Plan managed through the Hobsons Bay Planning Scheme, according to planning documents published by the Victorian Planning Authority.

The shift, detailed in the Altona North Comprehensive Development Plan and accompanying Development Contributions Plan, establishes zoning categories that directly affect what kind of housing can be built, and how long it takes to get a building permit. For Altona residents, the rules determine whether new homes will be townhouses, apartments or detached dwellings, and how quickly they can be delivered.

Height and Garden Requirements Shape Housing Types

Under the planning scheme, land in Altona North falls into three residential zones. The Neighbourhood Residential Zone (NRZ) allows building heights up to nine metres, while the General Residential Zone (GRZ) permits structures up to 11 metres. The Residential Growth Zone (RGZ), typically found along main roads, sets a maximum height of 13.5 metres. Each zone also carries specific garden area and site coverage rules, meaning developers must balance density with green space.

These standards directly influence the types of homes available. Lower-height zones favour single-family houses and duplexes; higher limits allow for apartment blocks. For a family seeking a dual-occupancy property, two dwellings on one lot, the typical permit timeline runs six to 10 months from lodgement to issuance, administered by Hobsons Bay City Council.

Exemption for Small Second Dwellings Under Contributions Plan

In January 2024, the Development Contributions Plan was amended to exempt small second dwellings, such as granny flats or tiny homes, from developer contributions. The change reduces upfront costs for homeowners adding a secondary unit, effectively lowering the financial barrier to creating more affordable rental or multigenerational housing within existing lots.

Cost of living pressures in Altona mean that any reduction in building fees or faster permit approvals can translate into lower housing costs. The exemption targets homeowners who might otherwise face thousands of dollars in council levies before construction could begin. While no dollar figures are attached to the policy change in published documents, the exemption applies to second dwellings that meet size criteria set out in the planning scheme.

Altona North's transition from industrial to residential use is expected to continue as the Comprehensive Development Plan rolls out. The precinct plan, originally adopted in 2017, outlines a mix of housing, parks and commercial space on former factory and warehouse sites near the Kororoit Creek corridor. For Altona residents, the outcome will be measured in how many new homes are built, and how affordable they remain.