Deloitte Access Economics released a report that it hoped would be a blueprint to accommodate a surge in population growth in Victoria that could make Melbourne Australia’s most populous city within 10 years.

It found the three regional cities – Bendigo, Ballarat and Geelong – compared well against Melbourne in physical services, health and safety, natural amenity, local amenity and human capital, making them well-placed to alleviate population stress on Melbourne’s growing outer suburbs.

The report placed Bendigo, Ballarat and Geelong at 10th out of 32 in terms of liveability, compared to 31 local government areas in Melbourne.

Median house prices across the three cities was $435,000, lower than all 31 councils in Melbourne.

Related: A storage shed or a house? Stark property prices differences underscored

While Bendigo’s population is expected to surpass 150,000 by 2050, a further three million people could move to Melbourne.

The Deloitte report found this would place further stress on the outer suburbs, and governments needed to do more to encourage population growth in regional cities.

Related: Can Bendigo cope with a growing population?

Deloitte partner Daniel Terrill said this growth in Bendigo, Ballarat and Geelong would require careful consideration.

“Regional city population growth, as part of a renewed emphasis on regional Victorian economic development and prosperity, should form a key pillar of any integrated planning strategy for Victoria’s population and economic future,” he said.

“However, promotion of long-term regional growth will require an integrated response from all levels of government and business.”

Bendigo’s growth in the coming 10 years will centre on greenfield housing development in Huntly, Maiden Gully, Strathfieldsaye and Jackass Flat, along with in-fill development closer to the city centre.

Related: Council supports 137-lot subdivision at Bagshot, near Huntly

Upgrades to the Calder Highway west of Bendigo towards Marong, the duplication of Napier Street to the north and increased train services have been established as ways of improving services to outer areas.

Mayor Margaret O’Rourke said she was “looking forward” to advocating regional Victorian living, but governments needed to back the regions.

“Continued investment in the regions from state and federal governments is critical to ensuring that they thrive both economically and socially into the future and can play an active role in easing the pressure on metropolitan areas,” she said.

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