The state government yesterday announced it would reassess Bendigo’s housing strategy.

High-density housing and ‘infil’ developments have been raised as potential solutions in a review of the city’s development. New housing styles would also be considered in the review to address the issue of affordable housing.

Parliamentary Secretary for Regional Development Damian Drum said the initial Bendigo Residential Development Strategy, launched in 2004, no longer reflected the city’s rate of growth. Mr Drum said the region’s population had blown out beyond expectations and would continue to grow.

“This review has become necessary because of the sustained strong growth in Bendigo over the last six or seven years,” he said. “The plans that have been put in place in 2004 may not be adequate in the future.”

Mr Drum said that within six years Bendigo’s population would have gone past the 40 per cent mark of the initial 25-year plan forecast in 2004.

He said the rapid growth was due to a range of factors.

“There’s over-arching pressure coming out of Melbourne, contributing to people moving to places such as Bendigo,” he said.

“As well as the fantastic opportunities for a great lifestyle here, it’s very appealing.”

The state government allocated a $50,000 grant toward the Bendigo residential review.

City of Greater Bendigo director of planning and development Prue Mansfield said the review would end up costing between $150,000 and $180,000

“The new growth in the strategy is not just about new suburbs or greenfields development, it’s about new housing styles,” she said.

“We need an increased diversity in the amount of housing stock, so part of our strategy is about where and how we do that well.”

Mrs Mansfield said 40 per cent of new houses in Bendigo in the past five years were two- and three-lot subdivisions. She said that trend would continue and would help ease the shortage of affordable housing.

Bendigo Property Management director Hunter Gill said the local property market had struggled to keep up with demand for a long time.

“It goes back as far as 12 years ago when the market tightened. It’s remained tight ever since and is only getting tighter,” he said.