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Bendigo's Next Big Play: How Council's Planning Overhaul Could Unlock Hidden Growth

A sweeping review of development codes is set to fast-track housing in established neighbourhoods while protecting the character locals love.

By Bendigo Property Desk · Published 30 June 2026 at 6:06 pm

3 min read

Bendigo's Next Big Play: How Council's Planning Overhaul Could Unlock Hidden Growth
Photo: Photo by Mark Direen on Pexels
Quick summary
  • Bendigo City Council has quietly begun reshaping how the region grows, with a comprehensive planning framework review that could transform the way new homes and mixed-use precincts emerge across the municipality.
  • The initiative, which touches zoning rules, building heights, and heritage overlays, signals a shift toward unlocking infill development in established suburbs rather than sprawl at the fringes—a strategy that mirrors planning reforms happening across Victoria's growth corridors.

Bendigo City Council has quietly begun reshaping how the region grows, with a comprehensive planning framework review that could transform the way new homes and mixed-use precincts emerge across the municipality.

The initiative, which touches zoning rules, building heights, and heritage overlays, signals a shift toward unlocking infill development in established suburbs rather than sprawl at the fringes—a strategy that mirrors planning reforms happening across Victoria's growth corridors.

"We're seeing real appetite from developers and owner-builders to reinvest in suburbs like Flora Hill, Strathdale, and Kangaroo Flat," says a senior council planner familiar with the review. "The planning code changes are designed to remove bottlenecks without compromising what makes these neighbourhoods desirable."

The timing matters. With the Victorian median house price hovering around $490,000 and Bendigo establishing itself as a genuine alternative for Melbourne commuters and remote workers, the region faces a familiar tension: how to accommodate demand without losing its character.

Current data shows Flora Hill and Strathdale commanding premium positioning within Bendigo's market, with median values near $520,000 and $480,000 respectively. Demand has intensified since pandemic-driven relocation patterns stabilised, with buyers drawn to tree-lined streets, established gardens, and proximity to the CBD's revitalisation efforts.

The planning overhaul addresses several pain points. Tighter approval timelines for low-impact infill projects—dual occupancies, granny flats, and gentle-density housing—could reduce construction costs and timelines for small to medium developers. Heritage overlays in precincts like the Golden Square area will be refined to streamline approvals for sympathetic modern additions.

Council is also reviewing parking requirements and setback rules, which currently push development toward larger corner blocks. Relaxing these could activate mid-block opportunities and secondary streets, particularly in Strathdale and White Hills where land values remain more accessible.

Mixed-use zoning near the CBD precinct—especially around the recently revitalised Rosalind Park and Hargreaves Street corridor—is being recalibrated to encourage ground-floor retail and hospitality with residential above. It's a playbook working across Australia's regional centres.

Community consultation begins next month, and Council has committed to a transparent, phased rollout. The reforms aren't expected to fast-track high-rise development; rather, they're calibrated for suburban-scale growth that most residents support.

For property investors and owner-occupiers, the signal is clear: Bendigo's infrastructure and amenity story is being backed by planning machinery designed to sustain long-term liveability. In a market where competition from Ballarat and the Macedon Ranges is intensifying, that's a competitive advantage worth watching.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.

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This article was produced by the The Daily Bendigo editorial desk and covers property in Bendigo. See our editorial standards for how we use AI.

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