Melton retail boom: Which big name brand will claim the coveted site?

The last prime space of land in the Woodgrove precinct is up for grabs.

A 1.6ha commercial site in Melton West is set to transform one of Melbourne’s fastest-growing suburbs, with major developers and big-box retailers rumoured to be eyeing the high-profile location.

Located opposite the bustling Woodgrove Shopping Centre, the site at 143-147 Barries Rd and speculation is already growing that a Costco, Ikea, car dealership, large-format homemaker centre or even a hotel could move in.

The site’s $9m price tag is expected to draw strong competition.

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Savills Melbourne director Stephen Bolton said while he wouldn’t confirm names, that the Barries Rd site was one of the last opportunities for buyers to purchase in the Woodgrove precinct.

“The zoning allows for a range of large-scale developments,” Mr Bolton said.

“We know the calibre of interest that came for the old Bunnings site next door, and we expect similar major players here.”

The 1.6ha commercial site in Melton West is ready to be snapped up.

Woodgrove Shopping Centre boasts seven million visitors a year.

Mr Bolton said the sites proximity to Woodgrove Shopping Centre, which attracts more than seven million visitors a year, has already put it on the radar for major national retailers and developers looking to capitalise on Melbourne’s booming outer west.

“This site has everything — huge exposure, freeway access, and a built-in customer base,” he said.

“Interest has been incredibly strong – the fundamentals are all here.”

Could Ikea snap up the Melton West site? Picture: NewsWire / Andrew Henshaw

Or perhaps Costco could call Melton home?

Developers and investors are already circling, keen to secure a foothold in one of Melbourne’s strongest growth corridors.

The site also boasts 65,000+ passing vehicles daily, direct freeway access, and is located alongside major brands like McDonald’s, KFC, and Bowens.

Savills Melbourne director Rick Silberman said the demand reflected Melton’s rapid transformation into a major commercial and retail hub with land values in the area skyrocketing in recent years, driven by increasing demand for large-format retail and commercial space.

“Land values here have soared over the past five to 10 years, and demand isn’t slowing down,” Mr Silberman said.

The $900 million new Melton hospital that will be completed in 2029 with the capacity to treat 130,000 patients a year.

“With the new hospital, rail upgrades, and population growth, we expect this to be one of the most competitive commercial land sales in the region.”

Melton’s population is set to double to 440,000 by 2050, with billions in government investment fast-tracking its transition from suburban fringe to a key commercial and transport centre.

The $900m Melton Hospital, set to open in 2029, will bring 24/7 emergency, intensive care, and maternity services to the area.

Meanwhile, the federal government announced the green light for $10bn Melbourne Airport Rail project and funding to electrify the Melton line, linking the city to fast metro services and the Sunshine superhub, dramatically reducing travel times to the Melbourne CBD and airport.

Prime minster Anthony Albanese alongside Victorian Premier Jacinta Allan announced funding for Airport Rail and Melton line electrification. Picture: NewsWire / David Geraghty

A $650m upgrade to Melton Station will boost capacity by 50 per cent, preparing the area for even greater growth.

Mr Bolton said major infrastructure investment was driving a wave of commercial development, with businesses positioning themselves now before prices surge.

“It won’t be long before Melton is seamlessly linked to the Melbourne CBD and the airport, making sites like this even more valuable,” he said.

“This isn’t just a retail hub anymore — it’s an emerging business and transport centre.”

Melton Station design – for Herald Sun Real Estate

Mr Silberman said now was the time for developers to act, as demand for the site was only set to intensify.

“Buyers already regret missing out on the old Bunnings site next door,” he said.

“In five years, they’ll probably be saying the same thing about this one.”

Expressions of interest for the site close on March 26.

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david.bonaddio@news.com.au