It’s Started – What Now?

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Melbourne’s Suburban Rail Loop Is Underway: What This Means for Homeowners, Buyers and Sellers

A once-in-a-generation build

The promise of Melbourne’s $35 billion Suburban Rail Loop (SRL) has loomed over local property markets for years. A transport megaproject billed as the “spine of Melbourne’s future,” it’s designed to transform how we move — connecting Cheltenham to Box Hill and beyond in the first stage, with new underground lines circling the city’s middle suburbs.

Now, it’s finally begun. Massive excavation sites, road closures, temporary businesses relocations and towering cranes have become daily sights in parts of Melbourne’s east. The political photo ops are done; the real work is underway.

For many, it’s an exciting sign of progress. But for homeowners, investors, and prospective buyers anywhere near the new line, the question is more sobering:

“What does this mean for my home, my plans, and my hip pocket — right now and into the next decade?”

From glossy maps to jackhammers on your street

Back when we first wrote “Caution When Buying Along the Suburban Rail Loop: Land Acquisition or Future Levies May Apply”, the SRL existed mainly as concept art. Councils were floating dreamy rezoning visions. Developers were feverishly assembling sites hoping for multi-storey approvals.

We also explored in our explainer on Victoria’s value capture how government might recoup costs by introducing new targeted levies. And in articles like “Frankston’s Rezoning – Why Buyers Should Be Wary of ‘Growth’ Promises” we unpacked the risk of paying top dollar for properties on the back of speculative zoning hype.

What’s changed? Everything.

The SRL is now moving from “possible” to “physical,” and buyers or owners who weren’t paying attention are starting to realise the enormous consequences.

What we’re seeing on the ground

At Victorian Property Settlements, we’ve begun fielding a steady stream of calls from people directly impacted by SRL works.

  • In Box Hill, clients who bought family homes on quiet streets now find themselves inside staging zones, with construction fencing replacing street parking, and looming questions over whether nearby property will be compulsorily acquired for ventilation shafts or new tram connections.

  • In Burwood, sellers hoping to cash in on “growth” are meeting cautious buyers — who worry that years of dust, heavy vehicle noise and road detours could suppress property values or rental returns.

  • In Cheltenham, we’ve seen developers pull back, waiting to understand final station footprints before pressing go on apartment projects.

This is the reality of a multi-decade infrastructure rollout. Unlike a quick road upgrade, the SRL fundamentally alters local streetscapes, planning controls and even how (or if) you can build on your own block.

The big three concerns for property owners and buyers

1. Compulsory acquisition is still very real

While the major tunnel alignments are locked in, authorities continue to finalise locations for stations, car parks, access shafts, spoil sites and utility corridors. That means more properties could be added to the acquisition map over time — sometimes with limited notice.

We’ve seen heartbreaking cases over the years with other infrastructure projects: owners pouring funds into renovations or even signing building contracts, only to receive a letter of acquisition. Compensation regimes exist, but they rarely match the emotional toll (or your actual plans).

2. Value capture and future levies will come

As we detailed in our dedicated value capture article, the Victorian Government has left the door open to funding these massive works through special levies.

While no new SRL-specific tax has been formally introduced, precedent is everywhere — from the CityLink widening levies to targeted developer contributions after the Melbourne Metro. It’s not hard to foresee that areas “benefiting” from new SRL stations could see future infrastructure levies or higher council rates.

3. The lifestyle impacts — and buyer psychology

Years of construction bring dust, vibration, heavy trucks and altered streetscapes. For homeowners, that might mean unexpected cracks in walls, disruption to local businesses, or a daily convoy of cement mixers outside your driveway.

For would-be buyers, it often triggers hesitation. As David Dawn puts it:

“We see this all the time. Buyers get excited about a suburb with a promised train line, then pull back once they see what a ten-year construction site actually looks like. It fundamentally shifts demand, at least in the medium term.”

Why you can’t rely on glossy marketing

Local councils and state agencies will keep promoting the SRL as a huge positive. And in many ways, it will be — eventually, for certain pockets. But the journey there can be rocky.

We’ve reviewed contracts for buyers being told by agents “this place will skyrocket once the SRL arrives.” Often, the fine print still contains clauses allowing the developer to delay builds, or disclaimers about nearby public works. Worse, these optimistic sales pitches rarely discuss possible future rates, or the fact that being right next to major transport infrastructure isn’t always as desirable once the realities of noise, congestion and future densification arrive.

What homeowners and buyers should do right now

  • Get the titles and overlays checked.
    New planning schemes linked to the SRL are rolling out progressively. That means you might discover overlays restricting how you extend, subdivide or redevelop. We can help identify these before you buy — or before you spend on costly plans.

  • Stay alert to acquisition notices and consultation sessions.
    Even if your block looks safe today, changes happen. Keep tabs on local bulletins, council consultations and SRLA updates.

  • Be cautious with speculative price premiums.
    Just because a selling agent tells you “the SRL is going to make this block a goldmine,” doesn’t mean the market will hold that premium through a decade of nearby construction. If you’re paying top dollar on that promise alone, tread very carefully.

  • Seek professional, truly independent advice.
    This isn’t the time to rely on a developer’s sales agent or a quick online contract kit. As David Dawn often says:

“These megaprojects change entire streets, valuation models and ownership risks. Make sure you have someone on your side who understands the local landscape and can see through the marketing gloss.”

Looking ahead: a new property landscape

By the time the first trains run on the SRL East, many of today’s buyers may have long since sold. The impact of this project on Melbourne’s middle suburbs will unfold over generations.

That’s why it’s so critical to get sound advice today. Whether you’re considering buying near the proposed lines, worried about your family home, or planning to sell in the coming years, understanding the evolving mix of planning laws, possible acquisition risks, and local buyer sentiment is essential.

Talk to us before you sign

At Victorian Property Settlements, we’ve been helping Melbourne buyers and sellers navigate complex property deals for over 25 years. We understand how big infrastructure changes like the SRL ripple through contracts, planning schemes and buyer psychology.

If you’re thinking about buying or selling anywhere near the SRL corridor, or just want to understand your risks and rights, get in touch. We’re here to provide truly independent guidance — not sales spin.

👉 Victorian Property Settlements – Trusted for over 25 years by Victorian buyers and sellers. Visit: www.victorianpropertysettlements.com.au