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The industrial component of the Urban Development Program (UDP) monitors industrial land as it changes between non-industrial use, to vacant parcels to industrial and commercial use of varying intensity.


  • In 2022, 126 hectares of land was rezoned to an industrial zone, while 41 hectares of industrial land was rezoned to a non-industrial zone.
  • There are 26,362 hectares of industrial land across metropolitan Melbourne. Of this, 4,744 hectares is classified as vacant, that is having no visible industrial use, while 2,870 hectares is zoned industrial but currently being used for a non-industrial use.
  • In addition to the land classified as vacant or non-industrial use, there are 6,691 hectares of unzoned land identified in strategic plans for future industrial purposes.
  • 60% of the vacant land is located with the State Significant Industrial Precincts (SSIPs).
  • There was a net consumption of 409 hectares in 2022. This is higher than the 288-hectare average over the previous 5 years.
  • The southern SSIP has the least amount of land remaining and is expected to be exhausted in the mid-2020s.

Change in the zoning of industrial land

The Melbourne Industrial and Commercial Land Use Plan (MICLUP) reinforces the importance of industrial land. It puts in place a planning framework to support state and local government to plan more effectively for future employment and industry needs. Zoning is a key tool used by MICLUP to maintain industrial land supply.

During 2022, 126 hectares of land was rezoned for industrial purposes. This land was mostly within the Shenstone Park Precinct Structure Plan (PSP) in Whittlesea. 41 hectares of industrial land was also rezoned from industrial to another use, including 15 hectares in the Arden Precinct in North Melbourne and 6 hectares along Swan Street in Richmond.

Hectares of land rezoned from industrial

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Stock of industrial land

Industrial land across metropolitan Melbourne

Most of the zoned industrial land is located within State Significant Industrial Precincts (SSIPs). These have been identified and protected via MICLUP as key locations for employment and industrial use. SSIP boundaries can be viewed on the UDP web map. The more dispersed Regionally Significant Industrial Precincts (RSIPs) also provide a considerable stock of zoned land and has the most zoned non-industrial used land. This land is likely to transition to industrial use as demand increases.

Hectares of zoned industrial land

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A small amount land has been zoned to industrial or newly identified as industrial since the publication of MICLUP. This has been categorised as “Precinct Pending” for the UDP Industrial 2022.

Industrial land in state significant industrial precincts

Of the vacant industrial land (2,865 hectares) 60% is located within the state significant industrial precincts (SSIP), with the most being in the western (1,064 hectares) and northern (830 hectares) SSIPs.

Hectares of zoned industrial land  - SSIPs

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Industrial land in regional and local industrial precincts

Regional and local industrial precincts provide an important source of industrial land and are dispersed across the city though still mostly located within outer and growth areas.

Top 10 LGAsZoned-vacant (Ha)Zoned-non industrial use (Ha)
Morning Peninsula (RSIPs) 3171014
Melton (RSIPs)308145
Casey (RSIPs)173161
Whittlesea (RSIPs)38255
Brimbank (RSIPs)1860
Hume (RSIPs)1241
Wyndham (RSIPs)10515
Kingston (RSIPs)410
Maroondah (RSIPs)330
Knox (RSIPs)282

Future industrial land in metropolitan Melbourne

In addition to zoned industrial land, a gross total of 6,691 hectares of unzoned land has been identified as future supply in the Growth Corridor Plans, previous strategic plans and in MICLUP. Of this future industrial land 4,496 hectares will be added in SSIPs.

These unzoned pieces of land are spread across all 7-growth area local governments and will undergo further planning processes, such as precinct structure planning, before they can be used for industrial purposes. Precinct structure planning will identify land to be used for infrastructure, conservation purposes and so forth.

LGAUnzoned stock (hectares)
Cardinia 1127
Melton 1181
Wyndham 1714

The majority (67%) of this unzoned land is also within the SSIPs and is protected for future employment and industrial use by MICLUP.

SSIPUnzoned stock (hectares)
Hastings SSIP0
Northern SSIP2344
Pakenham/Officer SSIP1127
Southern SSIP 0
Western SSIP1025

To find out more information about the precinct structure planning process or the status of a particular precinct please refer to the Victorian Planning Authority (VPA).

Consumption of industrial land

The UDP reports on net consumption as its primary indicator of activity. Net consumption is the amount of land that changes from vacant and non-industrial use to occupied (having a clear industrial or commercial use or structure) minus the amount of land that has changed from occupied to vacant.

Annual hectares of net consumption

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Metropolitan Melbourne consumption

In 2022 there was a net consumption of 409 hectares of industrial land in metropolitan Melbourne. This is higher than the 288-hectare average over the previous 5 years. Net consumption can be sensitive to the use of singular large sites. In the 2022, 47 hectares became occupied for the use of contaminated soil treatment. While this type of industrial site is categorised as occupied, there is a high likelihood it will change to a more intense industrial use, warehousing, in the future.

Average annual consumption in regional and local precincts

Regional industrial precincts had a net consumption of 108 hectares in 2022. This is the most on record due to the 47-hectare site mentioned above. Excluding this site, the net consumption of 61 hectares is still above the long-term (2005 - 2022) average. Local industrial precincts account for a small proportion of consumption. In 2022 there was a net consumption of 10 hectares which is consistent with the 9-hectare long-term average.

Average annual consumption in SSIPs

The SSIPs are where most industrial land consumption occurs. These precincts exhibit a cyclical pattern of consumption with regular peaks and troughs, though the trend has been upwards over recent years. In 2022,165 hectares of industrial land were consumed in the western SSIP. The western SSIP has consistently maintained the highest average levels of consumption, whilst the southern SSIP recorded the second highest level of consumption across metropolitan Melbourne with 76 hectares of industrial land consumed in 2022.

Annual hectares of consumption in SSIPs

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Exhaustion rates for SSIPs

Measuring remaining industrial land in relation to the consumption of land provides a basis to estimate the time at which land within a SSIP is likely to be fully exhausted.

The estimates of when industrial land will become exhausted are calculated by assuming an annual consumption rate (based on historic data) of the current zoned vacant land, zoned non-industrial use land, and future unzoned industrial land.

The southern SSIP has the shortest years of supply remaining (6 years), while it has a low consumption rate of 44-49 hectares per year it also has limited future stock and no unzoned land remaining. The western SSIP also has minimal years of supply remaining (15 years) however in contrast to the southern SSIP it has a high consumption rate of 102-143 hectares per year and a high future stock including unzoned land. The northern SSIP has the longest supply remaining, having a low consumption like the southern SSIP and substantial future stock, as outlined in the table below.

Years of supply remaining based on average consumption 2018-2022

SSIPconsumption Ha/p.a.vacantvacant + non-industrial usevacant + non-industrial use + unzoned
Western SSIP1437815
Northern SSIP44182430+
Southern  SSIP44566
Pakenham /Officer SSIPs17102230+

Years of supply remaining based on average consumption 2005-2022

SSIPconsumption Ha/p.a.vacantvacant + non-industrial usevacant + non-industrial use + unzoned
Western SSIP103101121
Northern SSIP322630+30+
Southern  SSIP49466
Pakenham /Officer SSIPs101830+30+

Page last updated: 21/12/23