Epsom Rezoning Plan: Bendigo's Mixed-Use Housing

A bold rezoning proposal could reshape Epsom, one of Bendigo's most underutilised suburbs, transforming sprawling industrial land into a vibrant mixed-use precinct that planners say could accommodate hundreds of new residents and ease housing pressure across the region.

Bendigo City Council is advancing plans to reclassify approximately 12 hectares of industrial zoning along Pall Mall and Chapel Street—currently occupied by low-density manufacturing and storage facilities—into medium-density residential and commercial zones. If approved, the proposal would permit apartment buildings up to four storeys, ground-floor retail, and office space, fundamentally altering Epsom's character.

The timing reflects broader pressures facing Bendigo's housing market. With the Victorian median sitting near $490,000 and Bendigo's median hovering below that, remote workers and Melbourne commuters have increasingly sought affordable alternatives in regional centres. Yet supply constraints in popular inner suburbs like Flora Hill and Strathdale have pushed developers—and buyers—further afield.

"Epsom represents a genuine opportunity," said Cr. Amanda Westwood, who chairs Council's planning committee. "We have underperforming industrial land within walking distance of the train station, yet we're seeing young families and downsizers priced out of established areas. Rezoning allows us to respond to that demand responsibly."

Council's draft strategy paper notes Epsom's strategic advantages: proximity to Bendigo station, adjacency to Epsom Gardens park, and underutilised infrastructure. Planners estimate the rezoning could facilitate 250–350 new dwellings over 10–15 years, generating an estimated $40–50 million in construction investment.

However, the proposal has drawn mixed reaction from existing stakeholders. Local traders at the Epsom Shopping Centre on High Street expressed cautious support, seeing potential foot traffic; however, several industrial operators have raised concerns about relocation costs and reduced available land in the region.

The rezoning aligns with Council's broader housing strategy, which aims to distribute growth beyond Flora Hill and Strathdale—suburbs where median prices have risen 8–12 per cent annually. Planning officers argue that medium-density development, rather than sprawl, maximises existing services and transport infrastructure.

Council will release the formal rezoning proposal for public consultation in August, with a planning panel hearing scheduled for November. If endorsed, amendments to the Bendigo Planning Scheme could take effect in early 2027.

The proposal reflects a wider conversation across regional Victoria about how secondary cities can accommodate population growth without repeating inner-city affordability crises. For Bendigo's arts and culture sector, expanded residential density near the station could also support the night-time economy and cultural venues clustered nearby.

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