New construction in Melbourne has already been well under way and will get underway in 2019 with the first units set to go up in the CBD.
But it will take a year and a half to build all the houses and apartments that will be built, with most of the land being acquired from the city and the rest owned by developers.
The land will be purchased from the City of Melbourne for $1.2 billion and will be given to developers, with many of the sites to be sold for new developments.
It’s part of a multi-million dollar strategy to make Melbourne one of the world ‘most desirable’ places to live.
Key points:The city has the largest land area of any major city in the world, but its population has fallen to about 600,000 people from more than 3 million in the 1980sThe city is the largest city in Australia and one of Australia’s most densely populated, with more than half of Melbourne’s population living in inner-city areas.
It is expected that more than 1 million people will live in the capital and around 1.5 million people around Melbourne will live within walking distance of a train station.
“The city itself is a pretty good model for this sort of thing,” said Michael Kiley, the chief executive of Real Estate Investment Trust, which manages the city’s land and infrastructure.
“It’s not that we have a very large number of people living in a very small area, it’s a very diverse population living within a very densely populated area.”
In the last decade Melbourne has become a major hub for tourism, which accounts for about half of the citys economic output.
“This is a new era for the city,” Mr Kiley said.
“And it’s going to be a lot more popular than ever before, so we’re going to have to make sure that we’re doing it right.”
The first phase of development is set to start in the 2020s, with the bulk of the new housing and apartments being set up in Melbourne’s inner-west.
However, the second phase is set for completion in 2021.
The city will also build out the Central Station and Melbourne’s iconic Westfield shopping precinct.
“In the 2020 to 2021 timeframe we will see a significant increase in the number of new residential units and the use of existing residential sites for retail,” Mr Ruggiero said.
The council is also building a network of high-speed rail between Melbourne and Adelaide to ease congestion.
In 2018, Melbourne’s City Council signed a contract with the Government to build the first phase in 2021, with work expected to start around 2021.
“The CBD is still going to remain a huge part of the CBD,” Mr Gower said.