MELBOURNE
THE INDUSTRIAL LAND SHIFT | 19
NATIONAL OVERVIEW SYDNEY
BRISBANE PERTH ADELAIDE CONTACT INFORMATION
Submarket State Of Play
Melbourne's industrial land pipeline is increasingly concentrated within a limited number of major precincts. Although this reflects the natural evolution of the city, differences in infrastructure delivery, ownership patterns and planning progress mean each corridor will contribute to future supply at a different pace.
ACTIVE LAND SUPPLY
LONG TERM LAND SUPPLY
SUPPLY DYNAMICS & CONSTRAINTS
SUBMARKET
• The West accounts for Melbourne's largest industrial land pipeline; however, around half of the supply (approximately 1,300 hectares) cannot be delivered until 2032 at the earliest, which materially distorts headline supply. • Delivery of future land supply remains closely tied to infrastructure sequencing, utility servicing and planning progress across key growth precincts. • As a result, the market is likely to experience ongoing short-term supply pressure despite the scale of the broader pipeline. Should current data centre demand persist, competition for industrial land is expected to strengthen further, reducing land availability for traditional logistics and industrial occupiers. • The North is increasingly becoming Melbourne's major freight and logistics corridor, supported by the proposed Beveridge Interstate Freight Terminal, the Northern Freight Precinct, Melbourne Airport expansion and the future Outer Metropolitan Ring. • While the longer-term pipeline is substantial at almost 800 hectares, much of this land cannot support near-term development until freight infrastructure, precinct servicing and planning are progressively delivered, meaning the headline supply materially overstates development ready supply. • The active land supply pipeline is centred on Craigieburn, Mickleham and Melbourne Airport; however, the North’s longer term strategic land supply shifts further towards Beverage. • The South East remains Melbourne's most established industrial market, anchored by Dandenong South and other State Significant Industrial Precincts that continue to receive strong planning protection for industrial and employment uses. • Although the submarket contains more than 900 hectares of longer-term supply, much of this is concentrated within Officer and Pakenham where development remains reliant on major transport infrastructure and Precinct Structure Plan delivery before meaningful land release can occur. • Development-ready land across core precincts including Dandenong South continues to tighten, with redevelopment increasingly replacing greenfield expansion in these areas as the primary source of new supply. • Industrial land availability within the East is effectively exhausted, with just six hectares of active supply remaining and no meaningful longer- term land supply. • New industrial development opportunities are expected to be confined to redevelopment of existing industrial assets, with ongoing scarcity expected to continue supporting land values and encourage occupiers seeking larger requirements to relocate towards Melbourne’s key growth corridors.
WEST
555 hectares
2,141 hectares
NORTH
369 hectares
762 hectares
SOUTH EAST
329 hectares
921 hectares
EAST
6 hectares
0 hectares
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