Top 10 Melbourne Suburbs with Strong Development Potential in 2025

Property developers in Victoria continue to seek locations with strong potential for growth, uplift in zoning, and increasing demand. Melbourne's ongoing population expansion, major infrastructure investment, and strategic planning policies under Plan Melbourne 2017–2050 have made several key suburbs stand out as development hotspots in 2025.

Outlined below are ten suburbs offering substantial development opportunities, subject always to due diligence and compliance with the Planning and Environment Act 1987 (Vic) and relevant local planning schemes.

1. Sunshine (Brimbank City Council)

Sunshine has been identified as a National Employment and Innovation Cluster under Plan Melbourne.

It benefits from substantial investment through the Melbourne Airport Rail Link and Metro Tunnel project, increasing its development appeal. Activity Centre zoning and Residential Growth Zones (RGZ) near Sunshine Station make it suitable for high-density and mixed-use development.

2. Preston (Darebin City Council)

Preston is undergoing extensive gentrification and infrastructure improvement, particularly around Bell Station.

It offers development potential in both RGZ and Commercial 1 Zones, particularly for low-rise apartments and townhouse infill within proximity to transport hubs.

3. Broadmeadows (Hume City Council)

Broadmeadows continues to transition through the Broadmeadows Revitalisation Project, supported by the Victorian Government.

Large industrial sites are being rezoned for residential or mixed-use development, making it ideal for townhouse or medium-density housing.

4. Box Hill (Whitehorse City Council)

Box Hill remains one of Melbourne’s most vibrant Metropolitan Activity Centres.

The suburb supports high-rise apartment towers due to the Activity Centre Zone (ACZ), proximity to transport, and its established Asian commercial precinct. It continues to attract strong private investment.

5. Footscray (Maribyrnong City Council)

Footscray has emerged as an inner-west hub of cultural and economic growth.

The Footscray Structure Plan promotes medium to high-density development, especially near the Maribyrnong River and Footscray Station. Gentrification and rezoning continue to support significant private development.

6. Werribee (Wyndham City Council)

Located in Melbourne's Western Growth Corridor, Werribee offers substantial greenfield development potential.

Development is supported by Precinct Structure Plans (PSPs) and long-term projects such as the Outer Metropolitan Ring Road. Subdivision of large lots under Urban Growth Zone (UGZ) is prevalent.

7. Coburg and Coburg North (Merri-bek City Council)

With strong transport links and medium-density zoning, Coburg and its surrounds offer considerable infill opportunities.

The area supports townhouse and multi-dwelling developments in areas transitioning from the Neighbourhood Residential Zone (NRZ) to the General Residential Zone (GRZ).

8. Cranbourne and Clyde (Casey City Council)

These suburbs remain vital parts of Melbourne’s south-eastern growth corridor.

Development is driven by large tracts of PSP-approved land and subdivision-ready parcels under the UGZ. The area is ideal for new estate developments and housing projects for first-home buyers.

9. Epping (City of Whittlesea)

Epping continues to benefit from the Northern Growth Corridor Plan and increasing demand for affordable housing.

The area contains Mixed Use Zones and land identified in PSPs for residential and industrial development. Infrastructure continues to expand, making Epping a balanced investment for residential or mixed-use projects.

10. Reservoir (Darebin City Council)

Reservoir offers developers solid townhouse and unit development prospects.

The suburb has undergone significant transport improvements, including level crossing removals, and contains GRZ pockets ideal for multi-dwelling developments.

Final Considerations for Developers

Prospective developers are reminded that any planning or subdivision must comply with the Planning and Environment Act 1987 (Vic), local planning schemes, and zoning and overlay requirements. Careful review of planning certificates and advice from a registered planner or surveyor is essential. Heritage overlays, design development overlays (DDOs), and other restrictions may apply.

We remind our clients that this information does not constitute legal advice, and all property development decisions should be informed by a full due diligence process with appropriate planning and financial professionals.

For further assistance on conveyancing and advice concerning property purchases in these and other high-growth areas, contact:

David Dawn