Something harsh and forceful will probably have to happen at some point.
If melbourne is gonna do higher density though ... I think it needs to take care that it doesn't fuck it up. From what I've seen, that care hasn't really been taken that much. Livable high density is possible ... you just have to force developers to do it. I also suspect you need to aggregate smaller lots in order to include more liveable components like large central garden areas/atriums and larger surface areas for light and air flow.
I really fear for the apartment blocks that have been built already as they age. In the CBD, they make more sense especially when they're high rise with views ... it's a different vibe. But if `burb people are to transition into higher density, you probably gotta do better than shoe-box apartments that maximise developer profits.