Caution When Buying Along the Suburban Rail Loop: Land Acquisition or Future Levies May Apply
/Be Cautious Buying Property Along the Suburban Rail Loop East
The Suburban Rail Loop (SRL) East is one of Victoria’s largest infrastructure projects, currently under construction between Cheltenham and Box Hill.
According to official materials released by the Victorian Government, the SRL East is expected to reshape development, transport, and land use across key areas of Melbourne’s south-eastern suburbs. While the project promises new train stations, faster connections, and urban renewal, it also introduces significant risks to current and prospective landowners in the affected corridors.
We urge all prospective purchasers — particularly those considering buying in or near the suburbs of Cheltenham, Clayton, Monash, Glen Waverley, Burwood, and Box Hill — to proceed with extreme caution.
Your Property May Be Acquired by the Government
One of the most immediate and material risks is the potential for compulsory acquisition.
Properties near future station precincts or infrastructure works may be identified for full or partial acquisition. If your property is within or near the designated Infrastructure Protection Area or the Strategic Development Area, it may be subject to acquisition under powers granted to the State Government for major projects.
While landowners are generally compensated, the reality is that such acquisitions can significantly disrupt your investment plans, cause delays in settlement, or result in legal and financial consequences not always fully appreciated at the time of purchase.
If They Don’t Take It, They May Tax It
Even if your land is not acquired, another concerning feature of the SRL East project is the foreshadowing of targeted land levies and developer contributions.
The Victorian Government has indicated its intention to recoup part of the project's $30 billion-plus cost through new levies imposed on landholders and developers who are deemed to benefit from the infrastructure upgrades.
These “value uplift” charges are currently in the discussion phase, but may soon become law. Owners of residential, commercial, or mixed-use property in the designated zones may find themselves subject to new annual charges, capital gains surcharges, or planning restrictions aimed at funding this project.
In other words, the fact that a new rail line is being built near your property does not mean you’ll benefit — instead, you may be asked to pay for it, whether or not you use it.
What You Should Do Before You Buy
We strongly recommend the following steps before committing to any purchase within the SRL corridor:
Conduct Title and Planning Searches — Ensure you obtain up-to-date Section 32 Vendor Statements that reflect any overlays, rezoning or strategic development planning affecting the property.
Investigate the SRL Impact Map — Refer to the project’s interactive planning tools and Infrastructure Protection Areas published on the official SRL East website: bigbuild.vic.gov.au
Review Government Announcements and Draft Legislation — Keep abreast of proposed taxation frameworks and rezoning initiatives.
Seek Professional Advice — As licensed conveyancers we can assist with pre-purchase reviews and flag any potential risks. Please note we do not provide legal advice, and complex matters involving compensation or dispute resolution should be referred to a solicitor.
Proceed With Your Eyes Open
Buying in proximity to a major infrastructure project may sound attractive on paper, but it comes with serious long-term consequences. Whether through the loss of land or the imposition of levies, the Victorian Government’s Suburban Rail Loop East plans could alter your property rights, increase your financial burdens, or both.
Ensure you understand all the implications before proceeding.