For more than a decade, Geelong’s growth has been driven by gangland raiders. The outer suburbs of the regional city have expanded rapidly, eating into previously open green space.
On the sparkling waterfront, construction is nearing completion on a new convention center, which attracted more than $450 million in federal funding.
There is a healthy demand, too, for luxury rooms with bay views. Greater Geelong’s reputation as a destination for casual and casual dining is growing – especially in its streetscapes.
But parts of the Geelong CBD are barren and unloved, creating an urban animosity that has become a barrier to businesses and people. There are long stretches of empty storefronts.
That is why local civic and business leaders, with the support of the council, are urging the state government to create a special economic zone, providing tax incentives to developers in the city center.
Geelong chief executive Michael Johnston said the city needed higher housing density to help absorb some of the rapid population growth.
“What needs to happen in the next phase is housing development,” he said. “What we are seeing at the moment is that market conditions are conspiring against that.
“That’s the perfect silver bullet in our opinion to make things happen in central Geelong.”
The state government aims to build more than 128,000 homes in Greater Geelong by 2051. But Johnston said building in central Geelong was more expensive than in Melbourne, making it difficult.
The City of Greater Geelong wants the state government to offer land tax concessions, stamp duty concessions and planning application fee waivers to encourage development.
They are also calling on the federal government to help fund priority projects and provide GST rebates. Geelong Mayor Stretch Kontelj said the council is ready to offer reductions in capital value rates and permits for new projects.
Geelong’s population topped 295,000 last year, compared to around 271,000 in 2021. But Kontelj said only about 2,000 people lived in Geelong’s CBD, although it could accommodate up to 20,000 in residential buildings of up to 20 storeys or even more.
Kontelj said the CBD was “slightly denigrated”, but stressed that more people living there would make it more attractive.
He mentioned that council statistics show that 17 permits have been issued for the development of the CBD, but he said that they are not reached due to construction costs.
Kontelj said the main thoroughfare including Moorabool and Ryrie streets should have been “lovely pools” and boutique shopping, but instead there were many empty shops.
“On the face of it, it looks like it’s a problem, but the truth is, it’s a transition because there’s progress that’s happening, especially in the hospitality area.”
Some of those troubled areas are clustered around Market Square, which has long been resistant to redevelopment.
The state government’s Central Geelong Framework, released last year, said Market Square and the nearby Westfield shopping center could be converted to a maximum building height of between 42 and 60 metres.
In other central heritage-listed areas, the system recommended maximum building heights between 16 and 28 metres. But crime has been an ongoing problem.
Earlier this month, Victoria Police reported an operation targeting retail theft and anti-social behavior in the city center had led to 350 arrests in the past year.
Geelong Chamber of Commerce chief executive Jeremy Crawford lets his children ride their bikes freely around his West Geelong neighbourhood.
“There are several neighborhoods they can go around,” he said. “CBD is not one of them.”
Crawford said low foot traffic and high-profile crime incidents were among the issues, while vacant lots sitting undeveloped and sluggish sales on residential developments were hindering growth.
“Without the density and population in the CBD, it would be very difficult for businesses to continue here.”
Crawford wants the state government to follow NSW’s lead and adopt a sales finance guarantee where the state government commits to buying some off-plan homes from developers so they can find lenders.
If the developer cannot sell the apartments on the private market, the government has the option to hold and rent or sell the apartments.
A spokesman for the state government said it was already offering incentives to support development, including the extension of stamp duty payments outside the scheme for townhouses and apartments and removing the threshold for free tax payments.
“We’re making it easier to build more homes in areas well connected to public transport, jobs and services – including Geelong,” he said.
But Geelong developer Bill Votsaris, who has rezoned Little Malop Street, claimed the inconsistent height limit in the city center – some five storeys – was a stumbling block.
“If you’re building a five-story building in the countryside, that can be used, but building in the inner city is more expensive.”
He said the federal government would attract more people to Victoria by making rent payments for new residential properties tax-deductible.
“It means you’re taking congestion out of Melbourne and creating demand in regional Victoria.”
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
Benjamin Preiss is the regional editor of The Age. He was previously a government rounds reporter and has also covered education for The Age.Connect through X or email address.
