VIC Property Development Demand Is Up – Is Your Team Ready?

As we enter the new financial year, Melbourne’s property development market is gaining serious momentum. With innovative projects, strategic investment, and supportive government policy, activity is accelerating across residential, commercial, and mixed-use sectors -marking a confident phase of urban transformation.

Victoria’s residential development landscape is undergoing a notable transformation, marked by a strong shift toward medium-density housing- particularly townhouses. This evolution is being driven by targeted government initiatives aimed at easing the housing shortage and supporting the state’s growing population. Victoria has positioned itself as a national leader in housing delivery, on track to meet 98% of its federal housing target - well ahead of other states.

Melbourne continues to lead Australia’s Build-to-Rent sector, with around 50% of BTR units under development located in the city. Supported by favorable planning frameworks, competitive land values, and rising institutional backing, the BTR pipeline is expected to grow significantly - potentially reaching $290 billion and 3% of national housing stock over the coming years.

The industrial sector remains a strong performer, driven by high leasing demand, low vacancy rates, and sustained investor confidence. Supply is tightening, particularly in core precincts like Melbourne’s south-east, and while feasibility and tax hurdles persist, the fundamentals remain resilient.

Commercial development is also regaining pace, as macroeconomic push and a shift in workplace design drive a wave of fit-out and repositioning activity. Falling interest rates and a healthy infrastructure pipeline are lifting investor sentiment, with flexible and future-proof spaces now a key priority for both tenants and developers.

The market continues to evolve, and staying informed, and connected is more important than ever.

Feel free to contact me if you'd like to discuss current market talent trends, or get in touch if you're open to exploring new opportunities. amelia.martin@redpathpartners.com