Bendigo Council Approves Mixed-Use Development on Pall Mall as Housing Crisis Deepens

Bendigo's urban planning landscape shifted significantly this week as councillors unanimously approved a $180 million mixed-use development on Pall Mall, marking one of the most substantial housing commitments in the city's recent history.

The project, which will deliver 340 apartments across eight storeys alongside ground-level retail and hospitality spaces, represents a direct response to Bendigo's escalating housing shortage. Local data compiled by the Urban Land Institute shows median property prices in the Bendigo district have climbed 18 per cent over the past two years, with rental vacancy rates plummeting to just 1.2 per cent—well below the healthy 3 per cent benchmark.

"This approval demonstrates Council's commitment to medium-density living in our CBD," said the development's planner, though questions linger about affordability outcomes. The proposal includes 51 apartments—15 per cent of the total—designated as 'affordable,' defined as no more than 20 per cent above market rate. For context, a one-bedroom apartment in Bendigo's central precincts now commands $2,100 monthly, a figure that has sparked concern among community groups.

The approval came alongside a contentious decision affecting the surrounding precinct. Council's planning committee voted 7-4 to rezone a 2.8-hectare pocket of land adjacent to the Bendigo Hospital complex from industrial to mixed-use residential—a move that has polarised local manufacturers who currently operate in that corridor near Hargreaves Street.

"We're balancing competing interests," said a Council spokeswoman. The hospital precinct rezoning could unlock capacity for approximately 450 additional dwellings over the next decade, though implementation timelines remain unclear.

These moves come as Bendigo grapples with demographic pressures. The Australian Bureau of Statistics reports the municipality's population has grown 2.8 per cent annually—double the state average—placing acute stress on existing housing stock across suburbs like Kangaroo Flat, South Bendigo, and the inner city.

Local advocacy groups remain cautiously optimistic but vigilant. Bendigo Community Housing, which operates 340 properties across the region, has called for mandatory inclusionary zoning—requiring developers to allocate 25 per cent of units to affordable housing—in all future major projects. "Without it, we risk creating beautiful new precincts that existing residents cannot afford to occupy," the organisation noted in a submission to Council last month.

The Pall Mall development is expected to commence construction in early 2027, with completion slated for 2030. Council will revisit affordable housing targets at next month's planning meeting.

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