THE Baillieu government's proposed radical zoning reforms, if implemented, will have a big impact on Victoria's commercial and residential property market, according to CBRE.
The company's associate director of town planning, David Minty, said the sweeping reforms to Victoria's planning zones would give affected landowners a greater flexibility in land use than previously permitted.
''The rationalisation of the existing business, residential, industrial and rural zonings will broaden the range of uses permitted within a consolidated selection of zonings,'' he said.
According to CBRE, the reforms delete nine existing zones, amend 12 zones and establish five new zones. The business 1-5 zones will be consolidated into two new commercial 1 and commercial 2 zones, with the former consolidating the existing business 1, 2 and 5 zones while the latter rationalises the existing business 3 and 4 zones.
Mr Minty said in commercial 1, floor area restrictions for a ''shop'' and ''office'' would be removed. Land used for a dwelling, cinema, cinema-based entertainment, food and drink premises, shop, supermarket, childcare centre and trade supplies would be ''as of right''.
Commercial 1 would excel in the broader activities allowed in sub-categories ''accommodation'' and ''retail premises''. These uses included residential aged care, backpacker lodges, taverns, hotels and motor vehicle sales.
Mr Minty said this zone would breathe new life into neighbourhood and sub-regional shopping centres, while super regional centres such as Chadstone, Knox, Southland and Highpoint would have more ways to grow. Shops, having become ''as of right'', would have no floor space caps, while an ''office'' would be as of right in the same building as a dwelling.
He said commercial 2 aimed to foster offices, manufacturing and industrial uses. It would exempt smaller-format supermarkets (up to 2000 square metres) and associated shops for a permit on land now zoned business 3 and 4.
''Full-line supermarkets and stand-alone shops will become permissible, subject to a planning permit. This is a significant change, as supermarkets are currently prohibited within these respective zonings.''
The proposed commercial 2 zone would thus generate new competition in the retail food sector. Also, bulky goods centres would become ''as of right'' on land now zoned business 3 under the alternative commercial 2 zone.
Mr Minty said the industrial 1, 2 and 3 zones remained largely unaltered, but one change removed the existing limitation on office floor space. This gave the chance for more appropriate-sized offices in traditional industrial areas. ''The proposed reforms respond to emerging industry which seeks a greater balance between office and industrial floor space.''
Submissions on the proposed rezonings close on September 21.
