7 Victorian Suburbs Developers Are Watching In 2026
If you’re deciding where to start your next property development project in Victoria, 2026 is shaping up as the year to stay close to transport, hospitals, schools and major employment hubs. The state is pushing hard to deliver more homes in established areas, especially around stations and activity centres, while growth-area Precinct Structure Plans (PSPs) continue to drive development in fringe suburbs. Put simply: focus on locations where planning certainty, infrastructure investment and everyday amenities all align.
Below are seven suburbs that tick the right boxes.
1) Box Hill — Inner-East Powerhouse with Hospital Anchors
Image credit: Philip Mallis
Box Hill remains one of Melbourne’s most connected centres. Frequent rail services and the 109 tram meet strong road access via the Eastern Freeway, while hospital and education hubs attract professionals and students. With Suburban Rail Loop (SRL) East planning advancing, the area is primed for more homes and services within walking distance of the station. It’s competitive and not cheap but demand is broad, students, downsizers, medical staff and investors all have Box Hill on their radar.
Sweet spots:
• Sites within 400 to 800 meters of the station and hospital
• Mixed-use footprints suited to medical or allied-health tenancies
• Build-to-Rent (BTR) over retail near the transport interchange
2) Clayton — Monash Innovation and Health on Your Doorstep
Image credit: Victoria's Big Build
Clayton sits at the heart of the Monash innovation arc. The university, teaching hospitals and research facilities create a steady stream of renters and owner-occupiers who value proximity. Add Monash Freeway access and the planned SRL East stop and the long-term story is compelling. Council’s activity-centre plan provides clear guidance on height, interfaces and public realm, useful for feasibility and design development.
Sweet spots:
• Mid-rise projects within the activity centre
• Townhouses on larger blocks using small-second-dwelling rules for extra yield
• Compact apartments aimed at staff and students near major bus and hospital links
3) Sunshine — Western Melbourne’s Transport and Health Hub
Image credit: Wikipedia
Sunshine is rapidly evolving into one of Melbourne’s most connected centres. Major rail upgrades and its role as a future multi-modal hub are expanding its reach well beyond the suburb itself. Add proximity to Sunshine Hospital and easy access to the Western Ring Road and you’ve got a location that combines convenience with strong growth fundamentals. The story here is simple: better transport, more jobs and improved services. That mix creates a solid foundation for both mixed-use projects and residential developments close to the station.
Sweet spots:
• Apartment and build-to-rent sites within 800 to 1,200 meters of the station
• Mixed-use corners positioned to capture foot traffic as the precinct matures
4) Tarneit — Fast-Growing Western Corridor with Clear Frameworks
Image credit: Wikipedia
Tarneit has matured quickly around the Geelong line station, now one of the network’s busiest. The catchment is growing as new neighbourhoods fill in and the stadium / town-centre vision points to a more complete 20-minute neighbourhood over time. Buyers are price-sensitive but well-planned sites remain in high demand. Planning frameworks are relatively clear which helps with staging and design.
Sweet spots:
• Townhouses and low-rise apartments within walking distance of the station
• Shop-top housing along the main street spine
• Corner sites suitable for dual occupancy
5) Cranbourne & Clyde North — South-East Family Heartland with Steady Delivery
Image credit: Royal Botanic Gardens
The Casey corridor keeps doing the fundamentals well: schools opening, town centres maturing, roads being upgraded and health services expanding around Casey Hospital. The long-discussed rail extension toward Clyde remains a potential upside but the market is active regardless. Projects that respect family budgets, without skimping on size, parking and light, continue to sell.
Sweet spots:
• Medium-density near established retail and schools
• Small-lot detached close to frequent bus corridors
• Sites that can pivot if rail planning advances
6) Wollert — Northern Growth Area with PSP Certainty
Image credit: Victorian Planning Authority (VPA)
Wollert benefits from a current PSP and proximity to Epping’s major services. As arterial works progress, access improves, attracting buyers and families. The buyer profile is value-led and family-oriented so efficiency matters: straightforward builds, repeatable floorplans and robust facades tend to outperform on cost and program.
Sweet spots:
• Corner duplex opportunities
• Terraces that comply with low-rise codes with minimal variations
• Grouped town homes near neighbourhood centres
7) Donnybrook & Mickleham — North-Spine Growth with Improving Access
Image credit: Wikipedia
On Melbourne’s northern spine, Donnybrook and Mickleham are moving from early-stage estates to established communities. Access to the Hume Freeway and V/Line provide commuters with options and ongoing intersection upgrades are easing bottlenecks. As amenities catch up, the area can support a broader mix of developments, from bigger lots to semi-detached dwellings and community-focused builds within walking distance of town centres.
Sweet spots:
• Staged sites near town centres
• Townhouse product within ~1 km of Donnybrook Station
• Small lot detached with optional studios for rental flexibility
What’s Changed and Why It Matters
• State planning is leaning into station precincts and activity centres. If your site sits within an 800 to 1,200 meters catchment of a busy station or a mapped activity centre, demand will continue to grow.
• PSPs still de-risk the fringe. In outer corridors, up-to-date PSPs and Infrastructure Contributions Plans (ICP) or Development Contributions Plans (DCP) make it easier to model infrastructure timing and contributions, critical for feasibility.
Bottom Line
Focus on the suburbs doing the heavy lifting, Box Hill, Clayton, Sunshine, Tarneit, Cranbourne/Clyde North, Wollert and Donnybrook/Mickleham, and you’ll be tapping into state planning priorities and long-term demand trends. Each location has its own strengths and challenges, but the combination of clear planning frameworks, strong transport links and everyday amenities gives developers a better chance of success when developing in these suburbs.