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Ballarat Plans Major Rezoning: 180 Hectares Transform From Industrial to Residential

Planning maps lodged with Ballarat City Council flag a shift from industrial to residential zoning across 180 hectares north of the old mine tailings site.

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By Ballarat Property Desk · Published 8 July 2026, 11:40 pm · 2 min read ·

Updated 9 July 2026, 6:18 pm

Ballarat Plans Major Rezoning: 180 Hectares Transform From Industrial to Residential
Photo: Brent_Zupp / CC BY-NC-ND 2.0

Ballarat City Council will consider rezoning 180 hectares in Sebastopol from light industrial to mixed residential use at its August meeting, a move that would open the former mining fringe to new housing lots as early as 2028.

State housing targets require Victoria to add 80,000 homes a year through 2030, yet new dwelling starts fell 11 percent in the March quarter, tightening supply in established regional centres where Melbourne buyers have already lifted prices in Alfredton and along the Lake Wendouree foreshore.

Sebastopol's position relative to established corridors

The proposed rezoning area sits between Skipton Street and the disused Ballarat-Skipton rail spur, within walking distance of the Sebastopol Railway Station and the Redan Recreation Reserve. Local agents note that blocks in nearby Alfredton sold for a median $485,000 last month, while comparable Sebastopol lots still trade below the regional median of $510,000.

Council's draft Ballarat Housing Strategy, released in April, identifies the Sebastopol precinct as one of three sites where infrastructure upgrades could be completed within existing water and sewer budgets managed by Central Highlands Water.

Price evidence and buyer interest

CoreLogic data for the March quarter showed Sebastopol median house prices at $462,000, up 6.4 percent over twelve months, compared with 9.1 percent growth in Alfredton. Two parcels on Vickers Street sold in May for $395,000 and $412,000 after brief marketing campaigns, both purchased by Melbourne investors who cited the rezoning timeline in their offers.

Ratepayers can inspect the draft amendment documents at the Ballarat Town Hall planning counter until 22 July. Submissions close on 5 August, after which councillors will decide whether to seek ministerial authorisation for the rezoning.

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