Contentious $3b village in play as Mount Scopus rezoning goes on show
The relocation of Mount Scopus Memorial College’s Burwood campus could deliver a $3 billion apartment-based mixed-village able to accommodate about 9000 people,
The surprise, controversial proposal – for more than five years it has been speculated the 10.6-hectare parcel would be bought for Deakin University next door – is being channelled through the state government’s Development Facilitation Program,
Engage Victoria has just exhibited an amendment to the Whitehorse Planning Scheme.
Mount Scopus announced in late 2024 it would relocate to a new campus on seven hectares it has secured the right to buy – the western edge of Caulfield Racecourse – for c$195m from the Melbourne Racing Club.
Value capture at work
The application affects four precincts across 245, 247 and 249 Burwood Highway and 7,9 and 11 Milford Avenue, within 500 metres of the proposed Suburban Rail Loop station Burwood station,
The masterplan allows for residential buildings between three and 20 levels containing 3900 dwellings.
Applying an average worth of $650,000, the end-value if the residential component would circle $2.5 billion.
Adding commercial elements – hotels, offices and shopping centres including a 2000 square supermarket – this could approach $3b. A portion might also be allocated for Deakin, which has been gradually expanding across what was one of the Bennettswood Teachers’ College.
Public bypassed and taxpayer put at risk
Planning material identifies the Mount Scopus land as a major future development opportunity beside the future Suburban Rail Loop Burwood station (continues below).
The application taps into the controversial “value capture” funding method the state government has adopted to justify the $34.5b construction cost.
This compels landowners and developers benefiting from SRL-driven planning and land-value uplift to pay part of that rise towards the project – effectively a tax on the development potential.
The fraught concept also exposes taxpayers and the state’s credit rating to risk if (as is happening now) property values go backward after the ALP has borrowed based on projected peak values.
Whitehorse City Council this week raised concerns about the development intensity; school ovals will be replaced. The Besen Centre is also expected to be razed.
“Council is also disappointed by the limited community undertaken by the state government,” a spokesperson added.
The planning scheme amendment will be displayed until September 1.
Planning minister Sonja Kilkenny is speculated will approve it next quarter.
This pocket of Burwood, near Warrigal Road, where Toorak Rd becomes Burwood Hwy, is about 14 kilometres east of Melbourne’s CBD.
Subscribe to our newsletter at the bottom of this page.
