Local developers deploy $1.5bn as confidence builds in Melbourne’s next growth cycle

Melbourne’s development site market is showing renewed confidence, with well-capitalised local developers deploying more than $1.5 billion during the first half of 2026 as they secure larger, strategically located sites and position for Victoria’s next residential growth cycle. 

Cushman & Wakefield’s Development Sites Market Report H1 2026 recorded 39 development site transactions above $10 million across Victoria, totalling $1.51 billion. While the number of transactions was lower year-on-year, average deal size increased 17.8 per cent to $36.6 million, reflecting a shift towards larger, higher-value acquisitions. 

Australian buyers dominated activity, accounting for 35 of the 39 transactions, or almost 90 per cent of deals by volume, demonstrating continued conviction from local developers in Melbourne’s long-term fundamentals. 

Residential development remained the clear investment priority, with more than $1 billion deployed across built-to-sell residential and greenfield land acquisitions as developers replenished pipelines in response to housing undersupply, population growth and improving planning certainty. 

Cushman & Wakefield’s Director, Development Sites, Hamish Burgess, said the market was increasingly being driven by conviction and strategic acquisition. 
“H1 2026 was defined by larger acquisitions as well-capitalised developers deployed capital into residential and greenfield opportunities, encouraged by planning reform, housing undersupply and confidence in Victoria’s long-term growth fundamentals. 

“The groups with capital are looking beyond short-term market conditions and using this period to secure larger, high-quality sites that will underpin their development pipelines over the coming years. 

“The increase in average transaction size is particularly encouraging. It demonstrates that experienced developers remain prepared to make significant commitments where they see the right combination of location, scale and long-term opportunity.” 
Metro Melbourne was one of the strongest-performing segments, with transaction value increasing 13 per cent year-on-year. Middle-ring townhouse and medium-density sites attracted strong competition from major developers, while activity across inner Melbourne was supported by planning initiatives including the Mid-Rise Code and the Victorian Government’s Activity Centres Program, providing greater certainty around future housing delivery. 

Greenfield land was the standout sector, accounting for 57 per cent of total transaction value during the half as major developers continued to secure future housing supply in response to population growth, housing demand and affordability advantages. 

Cushman & Wakefield’s Director, Development Sites, Joe Kairouz said the data showed experienced developers were actively positioning for future growth. 
“What we’re seeing is a market becoming increasingly strategic. In greenfield markets particularly, population growth, housing undersupply and affordability continue to drive acquisition activity, with major developers actively replenishing their pipelines. 

“Developers are targeting sites that offer scale, planning certainty and genuine competitive advantages, and the strongest opportunities continue to attract significant interest. 

“With planning reform improving development certainty and Victoria’s underlying housing demand remaining strong, we expect quality development sites to remain highly sought after through the second half of the year.” 
The report points to a market increasingly focused on the next phase of growth, with local capital taking a long-term view on Melbourne’s housing requirements and planning reforms creating greater certainty for future development.