Keilor Council Raises Building Heights, Enforces New Design Rules

Keilor council voted on July 5 to amend its residential zones, permitting buildings up to four storeys on lots previously limited to two storeys along the Old Calder Highway corridor while requiring minimum three-metre front setbacks and uniform brick cladding on new facades.

Why the rules shifted now

The changes respond to a documented shortfall of 2,400 dwellings projected through 2030 in the municipality's own housing strategy released last March. Officers cited rising applications for dual-occupancy projects near Keilor Village shops as the immediate trigger, with 47 such proposals lodged in the first half of 2026 alone.

Residents in Arabin Street and the streets backing onto Keilor Park will see the first effects, as those blocks fall inside the expanded medium-density overlay. The council's planning department has already flagged that any new structure taller than eight metres must now include a materials board showing at least 60 percent masonry or rendered finishes to match existing streetscapes.

Numbers behind the decision

Median house prices in the affected overlay reached $892,000 in the June quarter, up 9 percent from the same period last year, according to CoreLogic data reviewed by council staff. The amendments also cap site coverage at 55 percent for any lot under 600 square metres, a reduction from the previous 65 percent allowance.

Property owners can book a pre-lodgement meeting with the planning team from July 15 onward. An information session is scheduled at the Keilor Community Centre on August 12 at 7 pm, where planners will distribute updated zone maps and checklists for the new design standards.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.