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Thomastown Planners Rezone Industrial Area for Housing and Retail

Thomastown planners advance a land-use overhaul for the Oakwood area that would open former industrial parcels to housing and retail.

By Thomastown Property Desk · Published 8 July 2026

How we reported this

This article was written by AI from the linked sources and was not reviewed by a journalist before publishing. Melbourne Weather News is part of The Daily Network and follows our reasonable editorial care.

The Thomastown Planning Commission filed a rezoning application on July 3 that targets 47 acres of light-industrial land in the Oakwood neighbourhood for conversion to mixed residential and commercial use.

City staff say the move responds to a documented shortfall of 2,800 housing units projected through 2031 and follows months of closed-door reviews by the housing department. Global events have pushed material costs higher, yet local demand has not eased, with applications for building permits up 18 percent in the second quarter compared with the same period last year.

The affected parcels sit between Maple Avenue and Birch Lane, a stretch that currently houses two aging distribution centres and borders the weekly market at Central Market Square. The Thomastown Housing Authority has already flagged the zone for possible inclusion in its next round of affordable-unit incentives, while the Riverside Development Group submitted preliminary sketches showing ground-floor shops beneath four-storey apartments.

Numbers behind the plan

Current assessed values for the Oakwood parcels average $312,000 per acre. Under the proposed R-4 zoning, developers could build up to 1,200 units, a density that would more than double the neighbourhood population according to planning department estimates. Median sale prices for existing homes within a half-mile radius reached $425,000 in June, up 7 percent from December.

Next steps for residents and buyers

A public hearing is set for August 12 at Thomastown City Hall. Property owners inside the proposed overlay district can review the full text and maps at the planning counter on the second floor. Anyone seeking to comment must submit written statements by July 28; the commission will vote on forwarding the measure to the full city council in September.

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.

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