Melbourne Developer Acquires Prime Greenfield Site in Rapidly Growing Tarneit, Sparking Concerns Over Lagging Infrastructure
Melbourne developer Salvo has taken a significant step into high-density housing with the acquisition of its first greenfield site. The company has announced plans for a master-planned community on a 61.55-hectare parcel at 1228 Leakes Road, Tarneit, along the rapidly growing Geelong-Melbourne corridor.
The $73 million acquisition, finalized this month through alternative real estate investment manager Qualitas, positions Salvo for a substantial development opposite the future Wyndham Stadium. This strategic location, 32 kilometres west of Melbourne’s CBD and within the Oakbank Precinct Structure Plan and Urban Growth Zone, is expected to stimulate significant regional growth.
James Maitland, Salvo’s managing partner, emphasized the area’s potential: “This is a premium landholding in one of the fastest-growing regions in the country that is poised for major investment and population growth.”
The planned 15,000-seat Wyndham Stadium, home to the Western United Football Club, is expected to anchor the precinct and drive further development. The Wyndham Stadium Precinct Integrated Strategic Plan for Tarneit, approved in March by the Wyndham City Council, outlines infrastructure plans to accommodate nearly 27,000 new residents and 10,000 new homes, including a new train station, town centre, and schools.
Salvo aims to collaborate with Casey Capital to build up to 1,700 homes, featuring a mix of detached houses, apartments, and townhouses, alongside open spaces, parks, and commercial areas. This project marks Salvo’s first greenfield venture, adding to its $3 billion development pipeline that includes major projects at Fisherman’s Bend and Coburg’s Pentridge precinct.
“This transaction reflects our diversification strategy beyond inner-city high-density developments,” Maitland noted, highlighting the company’s long-term view and experience in building over 3,000 dwellings.
However, rapid population growth in Tarneit has raised concerns about lagging infrastructure. Despite ongoing projects funded by the Growth Areas Infrastructure Contribution (GAIC) Program, residents have faced delays in the delivery of essential amenities such as roads, public transport, and schools.
The Victorian Government’s Suburban Revitalisation program has allocated significant funding to address these issues, including upgrades to public transport and local amenities. Yet, the pace of infrastructure development has struggled to keep up with the burgeoning population, creating challenges in maintaining liveability and connectivity in the area.
Lot sales in Melbourne’s greenfield market, the largest in Australia, have continued to grow, with a 13 percent annual increase in the first quarter of 2024, highlighting the ongoing demand for affordable housing.
Salvo’s initiative underscores the balancing act between rapid urban development and the need for timely infrastructure to support expanding communities.
