Understanding the Current Landscape: A Look at Industrial Land Supply in Melbourne
- Team CapStack
- Feb 11
- 2 min read
Melbourne’s industrial land market is evolving rapidly, with rising demand, shrinking supply, and shifting development patterns reshaping key regions.
AND Property recently released their Industrial Land Supply report where they break down the trends, challenges, and opportunities across the region — helping investors and developers stay ahead in this competitive landscape.
We summarise their Land Supply Analysis here:
South-East:
The south-east remains a key industrial hub, with strong demand in areas like Dandenong South, Hallam, and Cranbourne West, driven by manufacturing and logistics. However, land scarcity is pushing prices up, making it more challenging for businesses to secure space. To meet demand, industrial development is shifting eastward to Pakenham and Officer South, where larger land parcels are still available, though infrastructure upgrades are needed.
West:
Melbourne’s west is a dominant industrial corridor, supported by large land availability, affordability, and strong transport links like the Western Ring Road and the Port of Melbourne. Truganina, Derrimut, and Laverton North are the most sought-after locations for large-scale logistics and warehousing, driven by e-commerce growth. However, rapid development is reducing available land, pushing prices up and encouraging expansion further west to areas like Tarneit and Melton. These emerging locations offer new growth opportunities but require infrastructure improvements and better transport connectivity to support industrial expansion.
North Region
The northern industrial precinct is growing rapidly due to its proximity to Tullamarine Airport and the Hume Freeway, making it attractive for transport and logistics businesses. Epping, Somerton, and Campbellfield are key industrial areas, with rising demand from investors and occupiers seeking more affordable alternatives to the west and south-east. Growth is extending into Mickleham and Craigieburn, where new developments are emerging, though land values are expected to rise as supply tightens. Future challenges include the need for improved infrastructure and balancing industrial growth with residential expansion and environmental concerns.
Reach out to Daniel Barr-Waanders at AND Property for the full report.
How can we help?
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Whether you're expanding your portfolio or a first-time buyer entering the industrial property market, our deep lender relationships and expertise in commercial property finance ensure you get the most competitive terms available.
We understand industrial investments, including LVR considerations, lease underwriting, and the importance of financing that aligns with your strategy.
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