Victoria Fast Tracks Keysborough Townhouse Community Project

A new residential community in Keysborough has received the green light under the Victorian Government’s Development Facilitation Program, paving the way for more than 160 new homes in Melbourne’s south-east. The $56 million Peet Keysborough project, approved by Planning Minister Sonya Kilkenny, is set to deliver a mix of double-storey townhouses aimed at tackling the state’s housing supply challenges and creating new opportunities for first-home buyers and growing families.

Located at 182 Chapel Road, just 27 kilometres from Melbourne’s CBD, the 4.1-hectare development will comprise 164 homes designed by MPS Architects. The mix will include five two-bedroom, 111 three-bedroom, and 48 four-bedroom townhouses, wrapping around the historic 148-year-old Keysborough Methodist Church. The design incorporates two new parklands, one along Chapel Road and another within the heart of the estate, ensuring residents have access to open green spaces and a strong community feel.

At least 10 per cent of homes will be set aside as affordable housing, either for purchase or lease through a registered housing agency or Homes Victoria. This commitment underscores the project’s alignment with the state’s priority to deliver accessible housing options for all Victorians.

Peet’s proposal was initially submitted directly to the Minister in June, allowing it to move swiftly through the state’s fast-track planning process. While the Greater Dandenong Council expressed concerns about density and lot size, the project received state approval in recognition of the pressing need to boost housing supply across Victoria. Minister Kilkenny emphasised that the decision supports the government’s commitment to build more homes faster to help ease affordability pressures on young Victorians.

The new permit marks a substantial increase from the 101-townhouse development previously approved by VCAT in 2022 for the same site, which Peet acquired in 2020 for approximately $25 million. Construction is expected to begin within three years, with completion required within five years of the permit being issued.

Beyond Keysborough, Peet continues to demonstrate strong momentum in its national residential portfolio. Its pipeline includes the $6.7 billion Flagstone masterplanned community in South-East Queensland, set to deliver 12,000 homes for around 30,000 residents, and a 1629-home precinct proposed for former University of Canberra land at Bruce in the ACT. Together, these developments highlight Peet’s ongoing role in addressing Australia’s growing housing demand through carefully planned, community-focused projects.

The Keysborough development stands as a testament to how collaboration between government and private developers can accelerate housing delivery while balancing liveability, design, and affordability. For the construction sector, it signals continued demand for skilled trades and subcontractors across Melbourne’s expanding residential corridor, offering new opportunities for those helping to build the communities of tomorrow.