Property Council Victorian Executive Director Cath Evans said the planning work would support a high number of quality homes near new or existing, often underutilised infrastructure.
"This is an important initiative that will help unlock the infill supply our state needs," Ms Evans said.
"Well-designed, accessible and vibrant activity centres are key to delivering affordable housing options, diverse employment opportunities and improved community outcomes.
"The property industry recognises there are important local conversations required about future infrastructure and open space needs for growing communities, and we look forward to contributing to those discussions," she said.
To support the required density increases, the Property Council will continue to advocate for establishing Special Economic Zones in activity centre precincts.
These zones will deliver targeted and necessary tax concessions, ensuring that new homes can be built reliably and affordably.
"Victoria's current tax climate is creating significant barriers to investment, and it is essential that government supports the sector by enabling much needed tax relief," Ms Evans said.
"Our Pre-Budget Tax Submission presents a clear 7-point plan, calling on the government to urgently address restrictive taxes and implement bold economic reforms to attract investment, restore market confidence and tackle the state's housing supply crisis."
The Property Council looks forward to continuing ongoing discussions and will continue to support the government's vision to improve housing affordability and meet housing targets.
