Infrastructure drives new momentum in Melbourne’s Sunshine Precinct

As investment in Melbourne’s west accelerates, the Sunshine Precinct is emerging as a key node in Victoria’s long-term urban growth strategy.

Backed by more than $20 billion in public infrastructure projects, this historically working-class area is being quietly repositioned as a future metropolitan centre - one that may reshape how Melbourne’s west grows over the next three decades.

Strategic repositioning through transport infrastructure

At the centre of this transformation is Sunshine’s evolving role as a major transport interchange. A series of significant rail upgrades - most notably the Melbourne Airport Rail link - will establish Sunshine Station as a primary hub connecting regional Victoria, the western suburbs, and Melbourne Airport to the CBD.

Currently underway, the Melbourne Airport Rail project will deliver a 30-minute connection between the city and the airport, with Sunshine Station acting as a key transfer point. As part of this, Sunshine is being redeveloped into a transport “superhub”, including new regional platforms, extended concourses, track realignments, and improved signalling infrastructure.

This network shift, supported by complementary projects like the Sunbury Line Upgrade and Metro Tunnel, positions Sunshine at the crossroads of future movement patterns - both within the metropolitan area and beyond.

Growth Areas: Housing, Jobs and Urban Structure

Urban growth forecasts model significant shifts in the Sunshine Precinct’s population and job capacity over the next 25 years. According to Victorian Government estimates, the area could support:

• 70,000 dwellings by 2051, up from 16,000 in 2021
• 45,000 residents, compared to today’s estimated 27,000
• 26,000 jobs, more than doubling the current base of 10,000

Importantly, this growth is concentrated around three primary nodes:

• Sunshine Station Precinct – envisioned as a mixed-use transit hub with commercial, civic and high-density residential development.
• Albion Quarter – a large redevelopment area surrounding the rebuilt Albion Station, planned to accommodate a mix of employment land and infill housing.
• Sunshine CBD – a civic and educational centre that includes Victoria University and Sunshine Hospital, with potential for further office-based employment growth.

These zones are positioned to support medium-to-high-density outcomes over time, particularly in response to housing supply pressures and the increasing viability of transit-oriented development in Melbourne’s middle suburbs.

Public Realm and Amenity Improvements

Complementing the transport infrastructure is a suite of urban realm projects aimed at improving the liveability and walkability of Sunshine.

The Sunshine Station Masterplan, supported by $143 million in government funding, outlines improvements such as:

• A new plaza and bus interchange at Station Place
• Shared user paths and landscaped public open space
• A new development site adjacent to the station
• Improved pedestrian connections across the rail corridor

Further north, the Albion Quarter Structure Plan is being prepared to support the transition of underutilised industrial land to mixed-use zones, with an emphasis on proximity to public transport and community infrastructure.

Meanwhile, early-stage planning is underway to revitalise Stony Creek, a concrete-lined drainage corridor, into a more ecologically integrated and accessible green space that could serve both flood management and recreational purposes.

Market and Investment 

Although Sunshine has seen incremental renewal in recent years, particularly within its CBD and civic precincts, its broader built form remains relatively low in scale. Large parcels of land, legacy industrial uses, and fragmented development patterns have historically limited significant private investment.

However, that equation is beginning to change. Government-led infrastructure is laying the groundwork for long-term uplift in land values and development feasibility, particularly for medium- and high-density residential and mixed-use projects within walking distance of key transit points.

The opportunity, for now, lies in the early timing of intervention. As has occurred in precincts like Box Hill and Footscray, public sector certainty around infrastructure often precedes a wave of private-sector response. Sunshine’s relatively flat topography, proximity to established institutions, and substantial redevelopment sites give it a similar potential trajectory.

New housing opportunities

Well positioned to take advantage of the future growth in Sunshine is LUMA, a vibrant new community by Development Victoria - the Victorian Government’s property developer.

Located halfway between Ginifer and Albion Stations and near the upcoming Sunshine Precinct infrastructure, LUMA Sunshine North will feature over 300 townhouses, with Melbourne-based SAW Constructions delivering the first two stages of the development. 

The first stage of LUMA has delivered 86 homes, with all residents now moved in and enjoying all that the area has to offer.

More than 3,600 sqm of open space has already been created at the newly opened Willowbark Park which features a playground, BBQs and picnic areas, enhancing liveability and local connection. 

A direct connection to the Stony Creek pedestrian path network has also been integrated, seamlessly extending this key link and encouraging active travel both within the site and beyond. A future bridge over Stony Creek will directly link the new community with the existing residential area to the east, improving east–west connectivity.

Development Victoria has recently started construction on Stage two - a mix of 85 two, three, and four-bedroom townhouses to suit a range of households and budgets, from first home buyers and investors to young families and downsizers.

Homes at LUMA are designed with a focus on sustainability and are all-electric, featuring solar PV double-glazed windows, and a minimum 7-star NatHERS energy rating.

Development Victoria is a government agency partnering with industry and communities to create sustainable, liveable places for people. They unlock underutilised land to deliver housing across Victoria, from house and land communities in Officer and Springvale, to mixed-use precincts in Fitzroy and Kew. They build a variety of homes and communities where people can thrive while catering to different budgets, lifestyles and needs so that more people can live where they want to be at prices they can afford.

Stage two of LUMA is now selling and is due for settlement next year. Buyers can secure a home with a 2.5% upfront deposit, and receive a $10k discount on the full price of the homes until June 30.