Geelong housing dispute: council pushes back on state’s intervention claim

News

Date: 25 June 2026

Updated: This story has been updated to include a response from the City of Greater Geelong.


The City of Greater Geelong has rejected the Victorian Government’s characterisation of its housing planning performance, after the state announced it would bypass the council to fast-track four Precinct Structure Plans in Geelong’s north and west.

In a statement issued today, the Allan Government said the four precincts — Batesford North, McCanns Lane/Merrawarp Road, Batesford South, and Heales Road East — had been sitting with the council since 2023 without a single plan submitted for approval, and that it was stepping in to unlock more than 23,000 homes nearly a decade ahead of the council’s schedule.

Deputy Mayor Cr Eddy Kontelj said that account was not correct.

“The suggestion that Council has been delaying these Precinct Structure Plans is simply not accurate,” Cr Kontelj said. “The City of Greater Geelong has been working diligently for many years to plan for growth, and at no stage has the State Government formally raised concerns with us that Council was failing to progress this work appropriately.”

Greater Geelong Deputy Mayor Eddy Kontelj has rebutted government claims about inaction over housing planning

Cr Kontelj said a number of the projects had encountered delays caused by factors outside the council’s control, and that the state was aware of them.

The Local Government News Roundup understands that in one case, the Creamery Road PSP cannot be submitted for Ministerial approval because it remains before the Minister’s own independent Standing Advisory Committee, which has not yet delivered its report. The referral to the SAC added at least twelve months to the project and cost the council approximately $500,000.

In another, the Elcho Road East PSP was set back by two years following the rediscovery of the nationally endangered Victorian Grassland Earless Dragon on or near the precinct, requiring additional surveys and habitat assessments — a circumstance believed to be well known to the Minister.

For Batesford North — one of the four precincts named in today’s announcement — council documentation indicates it sought state government support in November 2025 but did not receive a response for seven months, delaying the project before substantive work could begin.

Cr Kontelj said the council’s record on housing growth planning spoke for itself.

“The reality is that a number of these projects have faced delays outside Council’s control, including State Government approval processes, environmental assessments and delayed responses on key matters required to move precinct planning forward,” he said.

Greater Geelong says it has delivered seven Precinct Structure Plans over the past ten to fifteen years, including six in the Armstrong Creek growth corridor, as well as major infill plans for South Geelong, Pakington Street and the Geelong Saleyards. A 2020 Planning Panel independently commended the council’s approach to managing the city’s growth — though the state government then took a further nine months to approve the relevant planning amendment, itself delaying the commencement of the first PSPs under that framework.

It’s understood the Department of Transport and Planning has not raised concerns with the Council about performance at any point.

“We remain committed to working constructively with the State Government, because our priority has always been the same — delivering the housing, infrastructure and long-term planning our growing community needs,” Cr Kontelj said.

Greater Geelong is projected to need an additional 128,600 homes by 2051. The government’s announcement also includes two 3D-printed social housing homes in Geelong, which it says can be delivered in approximately three months each — described as a first of its kind for social housing in Victoria.

Further reading:

Victorian Government — We’re Stepping In To Deliver More Homes For Geelong, 25 June 2026

Geelong Advertiser – State steps in to unlock 23,000 Geelong homes after council delays, 25 June 2026 (paywalled)

Greater Geelong City Council response – Deputy Mayor Cr Eddy Kontelj, 25 June 2026

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