Salvo Embarks on Strategic High-Density Housing Project in Tarneit

In a strategic move signalling its expansion into high-density housing, Melbourne developer Salvo has recently acquired its first greenfield site. This significant development is set to create a masterplanned community on a 61.55-hectare site at 1228 Leakes Road, Tarneit, located along the rapidly growing Geelong-Melbourne corridor.

Salvo purchased the prime site for $73 million through alternative real estate investment manager Qualitas. The deal, finalised this month, positions the developer in one of the nation’s fastest-growing regions. The site is strategically located opposite the planned Wyndham Stadium, just 32km west of Melbourne’s CBD, and within the Oakbank Precinct Structure Plan and Urban Growth Zone.

The upcoming 15,000-person stadium, home to the Western United Football Club, is expected to be a major drawcard, attracting significant investment and population growth to the area. Salvo’s managing partner, James Maitland, highlighted the site’s potential, stating, “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 Wyndham Stadium Precinct Integrated Strategic Plan for Tarneit, approved in March by the Wyndham City Council, sets the stage for nearly 27,000 new residents and 10,000 new homes. In addition to residential development, the plan includes essential infrastructure such as a new train station, a town centre, and schools, ensuring a well-rounded community for future residents.

Salvo plans to collaborate with Casey Capital to develop the community, which will feature up to 1700 homes in a variety of typologies, including detached houses, apartments, and townhouses. The development will also incorporate open spaces, parks, and commercial and mixed-use areas, fostering a vibrant and sustainable environment for its residents.

While this is Salvo’s first foray into greenfield development, the company boasts an impressive $3-billion development pipeline. This includes a $1-billion, four-tower development at Fisherman’s Bend, and a $1.2-billion mixed-use project at Coburg’s historic Pentridge precinct, alongside a further $1 billion in projects across commercial, industrial, and mixed-use sites in Victoria and New South Wales.

James Maitland emphasised the company’s strategic shift, stating, “This transaction reflects our diversification strategy beyond inner city high-density developments. We take a long-term view with our projects. We’ve built more than 3000 dwellings through various cycles, and the fact remains Melbourne’s property fundamentals are strong, including population growth and continuing demand for affordable housing stock in greenfield communities close to existing and future amenity and transport connectivity.”

The outlook for Melbourne’s greenfield market remains robust, with lot sales continuing to grow. According to the RPM Greenfield Market Report, Melbourne’s greenfield market, the largest in Australia, experienced a 13 per cent annual growth in lot sales in the first quarter of 2024.

Salvo’s ambitious project in Tarneit is poised to make a significant impact on the region’s development landscape. By offering a diverse range of housing options and integrated community amenities, Salvo aims to create a thriving, sustainable community that meets the growing demand for high-quality, affordable housing in one of Melbourne’s most dynamic growth corridors.