The Victorian Minister for Planning has given the green light to a new residential development in Warrnambool, projected to add approximately 4,500 homes, along with educational institutions and a central town hub.
The local mayor has indicated that this expansion could increase the city’s population by nearly 50 percent.
Completion of the development is anticipated to take up to 25 years.
This initiative aims to address the housing crisis in the regional city, which is poised to see its population swell by around 15,000 residents due to the state government’s endorsement of a new housing area.
Located in south-west Victoria at the terminus of the Great Ocean Road, Warrnambool is the largest coastal city in the region and currently houses around 36,000 individuals. Prior estimates suggested that the population would rise to 43,000 by 2031.
The forthcoming development represents the most significant single growth in Warrnambool since it was originally planned and surveyed in 1845.
According to the Australian Bureau of Statistics, the city’s population has increased by 2,250 over the last ten years.
Warrnambool has faced persistent challenges related to housing availability, with the local council reporting a rental vacancy rate of just 0.8 percent as of 2026.
On Friday, Minister Sonya Kilkenny approved the structure plan for the East of Aberline Precinct.
Documents from the Victorian Planning Authority indicate that the development will cover 407 hectares and will feature community amenities, a supermarket, retail spaces, parks, and new educational facilities, along with pathways for walking and cycling.
A representative from the Victorian government informed ABC News that construction is set to commence within a year, with the development expected to unfold gradually over the next 15 to 25 years.
The Warrnambool City Council expressed its support for the approval, with Mayor Ben Blain highlighting that the project would result in a 50 percent increase in the population, roughly equivalent to adding a small town to Warrnambool.
“This growth will be comparable to the size of Colac, situated on the outskirts of Warrnambool,” he noted.
Cr. Blain mentioned that the council had collaborated closely with the government throughout the planning process and continues to advocate for enhanced local facilities to support sustainable growth.
He emphasized that the precinct plan includes a variety of housing options, featuring one and two-bedroom residences.
“It is crucial for us to achieve greater diversity in housing throughout Warrnambool, and this aspect of the plan is particularly exciting,” remarked Cr. Blain.
