Melbourne Property Development: Big Projects, BTR & Masterplans

Hard to believe we’re already approaching November! As we move through late 2025, Melbourne’s property development sector is showing clearer signs of re-acceleration - driven by large public infrastructure programs, a growing Build-to-Rent (BTR) pipeline, and renewed institutional investment across key sites. There’s certainly a more positive feel than this time last year; developers are showing fresh ambition to advance projects, and overall sentiment has strengthened.

 Residential Market Institutional and super fund buyers remain active across strategic Melbourne locations, with recent acquisitions of riverfront and inner-city sites earmarked for apartment and mixed-use projects. These transactions reflect confidence returning to core markets as the apartment sector stabilises. Median house prices have now recorded a second consecutive quarterly increase - the first time since 2021.

 Build-to-Rent Momentum Australia’s BTR pipeline has expanded significantly, rising 35% over the past year to around 39,300 apartments as of June 2025. Melbourne continues to lead the country, with several new schemes due to open before year-end. The sector is reshaping rental supply dynamics and drawing sustained institutional capital focused on long-term ownership. Recent federal and state policy reforms are also improving feasibility and affordability outcomes, further boosting confidence in the model.

 Precinct & Infrastructure Development Major precinct masterplans linked to the Suburban Rail Loop (SRL) continue to progress, including Vicinity’s Box Hill Central North project, which has received planning approval and will deliver approximately 1,700 new homes. The SRL remains central to Victoria’s housing and transport strategy, unlocking tens of thousands of new dwellings around future station precincts and driving demand for higher-density, mixed-use outcomes.

 Commercial, Industrial & Alternative Assets Developers are maintaining focus on flexible, amenity-rich office refurbishments and mixed-use projects to meet the evolving needs of a hybrid workforce. Industrial and logistics corridors, particularly in Melbourne’s west and southeast continue to attract strong demand, underpinned by e-commerce and supply chain investment. Meanwhile, specialised sectors such as student accommodation, aged care, life sciences, and data centres are growing, reflecting ongoing demographic and technological shifts.

People & Talent Trends With development activity ramping up and confidence improving, recruitment is also gaining momentum. For the first time in several years, high-quality candidates are entertaining multiple offers - and counteroffers are back on the table. If you’re anticipating recruitment needs in the coming months or early next year, I’d recommend starting conversations now. When the market improves for one, it improves for all - so getting on the front foot will give you a strong advantage.

Thank you for reading, and here’s to an exciting end to 2025 in Melbourne’s property development sector!

Amelia Martin | Redpath Partners

amelia.martin@redpathpartners.com