A $2 billion investment will see 5,800 new pieces of real estate built in Armstrong Creek West after approval was granted from Victoria's planning department.

Planning minister Matthew Guy explained that the development is a boon for the Geelong area, with the region one of the fastest growing parts of the country. The minister said this is part of the state government's commitment to create sustainable living communities that will last generations.

Armstrong Creek West is located on the edge of Geelong, where in addition to the nearly 6,000 new homes, open areas such as parks, running and cycling tracks, and community fields will be built.

The Armstrong Creek Urban Growth Area will see 22,000 new jobs created, Mr Guy continued, with 60,000 to live in the area.

Andrew Katos, member for South Barwon, said this was a win for his community.

"Armstrong Creek West provides for significant areas of local and neighbourhood open space and community facilities to support this new part of Geelong," he explained.

"Geelong is the best city in Victoria, and the well-planned growth at Armstrong Creek will help us to maintain our strong economy into the future."

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