Warrnambool Housing Plan Approved: 4,500 New Homes Set to Reshape the South-West Coast

Warrnambool is preparing for a major transformation after the approval of a new residential precinct expected to deliver approximately 4,500 homes and accommodate up to 15,000 people. The East of Aberline Precinct Structure Plan marks a significant milestone in the future development of Warrnambool, one of Victoria’s key regional coastal cities.

Approved by Victoria’s Planning Minister on 2 October 2026, the plan sets out a long-term vision for housing, transport, community facilities and open spaces in north-east Warrnambool. The development is expected to progress over the next 20 to 30 years, helping the city prepare for population growth and increasing demand for housing.

For homebuyers, investors, developers and local businesses, this approval could create new opportunities while raising important questions about infrastructure, affordability and sustainable growth.

What Is the East of Aberline Housing Development?

The East of Aberline project is a large-scale residential growth precinct planned for more than 400 hectares of land in north-east Warrnambool.

The approved structure plan provides a framework for building a new community with a mix of residential properties, public spaces and essential services. Rather than focusing exclusively on housing numbers, the plan considers the facilities and connections needed to support a growing population.

According to Warrnambool City Council’s official announcement, the precinct is expected to eventually accommodate up to 4,500 homes and 15,000 residents.

The development is also intended to support a more diverse range of housing options, helping meet the needs of families, couples, individuals and smaller households.

Key Facts About Warrnambool’s New Housing Plan

• Location: East of Aberline, north-east Warrnambool, Victoria.

• Planned housing: Approximately 4,500 new homes.

• Potential population: Up to 15,000 residents.

• Development area: More than 400 hectares.

• Expected delivery period: Approximately 20 to 30 years.

• Planned facilities: Roads, schools, shops, parks, sporting reserves, community spaces and walking and cycling connections.

These figures describe the approved long-term precinct plan, not homes that are already completed or immediately available for purchase.

Why Has Warrnambool Approved Such a Large Housing Plan?

Warrnambool plays an important role as a regional centre for south-west Victoria. As more people look to regional areas for employment, lifestyle opportunities and housing, planning for future residential demand has become increasingly important.

Housing availability has also been a local concern. ABC News reported in October 2026 that Warrnambool’s rental vacancy rate was approximately 0.8%, highlighting the tight conditions facing renters.

The East of Aberline precinct is designed to provide additional housing capacity over the coming decades. It also offers an opportunity to plan new neighbourhoods alongside roads, public spaces and community facilities instead of relying solely on existing infrastructure.

You can read more about the local government's broader planning approach through its Warrnambool Futures long-term land use plan.

What Facilities Will the New Precinct Include?

A development of this size requires more than residential streets and houses. The approved plan identifies areas for important facilities and infrastructure that will help the future community function effectively.

1. New Schools and Education Facilities

The plan includes a site for a government primary school. This could help support families moving into the precinct and reduce the need for all residents to travel to established neighbourhoods for schooling.

The timing of school delivery will be important as new homes and families arrive.

2. Shops and a Town Centre

A planned town centre and designated retail areas could provide convenient access to everyday essentials, services and local businesses.

If delivered alongside residential growth, these facilities may help establish a connected neighbourhood where residents can access some services closer to home.

3. Parks and Sporting Facilities

Open spaces, sporting reserves and community areas are included in the plan. These facilities can support recreation, social activities and the overall liveability of the new precinct.

The plan also identifies environmental areas, including Francis Tozer Reserve and Russells Creek, for protection.

4. Roads and Active Transport

Road networks and walking and cycling connections will be important for linking new homes with schools, shops and the wider city.

The effectiveness of these connections, together with transport planning and infrastructure delivery, will influence how easily future residents can move around Warrnambool.

How Could the Housing Plan Affect Property Prices and Investment?

The approval could influence Warrnambool’s property market over time, but the actual impact will depend on demand, construction costs, interest rates, infrastructure delivery and the pace at which homes are released.

More Housing Choices for Buyers

An additional supply of residential land could create opportunities for buyers seeking new homes in a growing regional city.

The planned mix of housing options may also help accommodate different household sizes and budgets. However, the approval does not guarantee that all homes will be affordable or available at the same time.

Potential Opportunities for Property Investors

Investors may monitor East of Aberline as part of a broader assessment of Warrnambool's long-term growth prospects.

Before purchasing property, investors should consider local rental demand, vacancy rates, purchase prices, ongoing costs, planning restrictions and the timing of competing housing supply. Future price increases should never be assumed solely because a large development has been approved.

Opportunities for Builders and Local Businesses

A project extending over several decades could create demand for construction services, trades, building materials, landscaping, retail and other local services.

The scale and timing of these opportunities will depend on individual development stages, approvals, infrastructure funding and market conditions.

For official information on residential land supply and local housing planning, see Warrnambool City Council’s residential land supply monitoring page.

Will the Development Help Improve Housing Affordability?

Increasing housing supply can help address shortages, particularly when new homes are delivered in locations where people want to live and work. However, additional supply does not automatically translate into affordable housing.

The final outcome will depend on the types of homes built, construction costs, land prices, infrastructure charges, financing conditions and the needs of local residents.

Warrnambool will also need to consider housing for essential workers, older residents, first-home buyers and smaller households.

For additional context, the council provides information about key worker and affordable housing initiatives.

The success of the precinct should therefore be measured not only by the number of homes delivered, but also by the variety, accessibility and affordability of the housing available.

What Happens Next?

The approval establishes the planning framework for the East of Aberline precinct. It does not mean that all 4,500 homes can be built immediately.

The next stages will involve progressive development, infrastructure provision and the relevant planning and subdivision approvals for individual projects.

Warrnambool City Council will assess future planning permit applications for the precinct. The development timeline will depend on factors including landowner intentions, market demand and the delivery of supporting infrastructure.

The Victorian Government has indicated that construction could begin in approximately a year following the October 2026 announcement, subject to the necessary steps and approvals. The overall project is expected to unfold over the next two to three decades.

For the latest planning information, visit the official East of Aberline precinct announcement.

Conclusion

Warrnambool’s approval of the East of Aberline precinct represents a major step in planning for the city’s long-term growth. With approximately 4,500 homes planned alongside schools, shops, parks, sporting facilities and transport connections, the project has the potential to reshape north-east Warrnambool over the coming decades.

The development could provide more housing options, create opportunities for local businesses and support the city’s growing population. However, its ultimate success will depend on how effectively homes, infrastructure, environmental protection and community services are delivered together.

For buyers, investors and residents, the key issue now is how this ambitious plan progresses from an approved framework into a well-connected, liveable and accessible new community.