Bendigo at a crossroads: the housing and planning decisions that will shape the next decade

Bendigo stands at a pivotal moment in its urban development story. With median house prices now exceeding $650,000—up nearly 40 per cent since 2021—and rental vacancy rates hovering below 1 per cent, the city faces mounting pressure to reshape its approach to housing and planning. But the decisions Council makes in the coming weeks will determine whether Bendigo becomes a densely packed urban centre or maintains its character while carefully managing growth.

Three major decisions loom. First, Council must vote on proposed changes to the Planning Scheme that would streamline approvals for residential projects in the Cathedral precinct and along the Pall Mall corridor. Supporters argue faster timelines will unlock supply; critics worry about overshadowing heritage streetscapes and losing the architectural identity that draws visitors to the Pottery precinct and surrounding galleries.

Second, the controversial Weeroona Estate redevelopment proposal—which would see aged-care facilities replaced by mixed-use housing on prime land near the Bendigo Hospital—returns to the planning committee in early August. The $180 million scheme promises 400 new dwellings but requires rezoning and significant traffic management plans for the surrounding suburbs.

Third, and perhaps most contentious, is whether Council will adopt a new inclusionary housing policy requiring 15 per cent of new residential projects to include affordable units. Property developers have warned this could kill smaller projects entirely; housing advocates say without it, ordinary workers will be priced out of neighbourhoods like Golden Square and California Gully within five years.

The timing is crucial. Victoria's planning reforms, announced last month, give Councils until October to align local schemes or face state intervention. Bendigo's planning department has flagged staff shortages and competing priorities; several officers told The Daily Bendigo informally that the current workload is unsustainable.

Community groups are mobilising. Save Bendigo's Character, a coalition of heritage and neighbourhood groups, is preparing submissions opposing fast-tracked approvals. Meanwhile, housing advocates at Launch Housing and the Community Housing Association of Victoria are pushing Council to adopt the strongest possible affordability requirements.

Cr. Sarah Chen, whose ward encompasses much of the proposed change areas, has indicated she'll seek a comprehensive community consultation period—potentially delaying decisions into September. Other voices on Council are pushing for decisions by late July to meet state timelines.

The question isn't whether Bendigo will change—it already is. The question is whether those changes will be managed thoughtfully or imposed by default. The next six weeks will tell us which path this city chooses.

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