A 10-year plan for industrial land

A 10-year plan for industrial land

Victoria is growing - and so is demand for well-located and affordable industrial land. A 10-year plan for industrial land (The plan) is Victoria’s roadmap to meet this demand.

Industrial land drives economic activity and jobs growth. It provides space to manufacture and move goods, process materials and deliver essential services a growing population depend on.

This plan outlines the actions we’ll take over the next decade to address barriers and accelerate planning processes to bring supply online sooner – supported by infrastructure - to give businesses certainty they can invest, expand and innovate with confidence in Victoria.

Demand for industrial land

Land values more than doubled in some areas during COVID-19, with strong demand and a shortage of effective supply in key markets across metropolitan Melbourne contributing to ongoing industry concerns.

Since 2023, land values eased in most markets driven by downward pressure from escalated construction and debt costs but rents continue to rise and vacancy rates remain low.

Demand is forecast to continue growing, based on indicators including industry, employment and population growth, land supply, market dynamics, policy, infrastructure delivery and freight. Melbourne’s industrial land take-up is projected at 330 hectares each year over the next decade.

Based on forecast take-up, existing and future supply can accommodate 38 years of development, but realising the economic benefits of remaining supply requires timely and well-coordinated planning and infrastructure delivery.

The 10-year plan for industrial land is supported by the Future Industrial Lands Demand, Melbourne, report prepared by JLL for DTP, September 2025.

Developing the 10-year plan for industrial land

The plan draws on extensive engagement on existing government policies, including Plan for Victoria, the Victorian Industry Policy and the Victorian Freight Plan, and targeted discussions with industry peak bodies and councils. This provided valuable insights that informed the actions and identified the following priorities:

• lack of enabling infrastructure, delays or uncertainty in planning approvals and lack of coordination across government are constraining development.
• long-term certainty about industrial land supply being critical as it directly shapes long-term investment decisions
• business impacts of delays to development or project timelines.

Traditional Owners and self determination

Decisions about industrial land can directly affect Country, including:

• how land is accessed and used
• opportunities for Traditional Owner-led business and economic development
• the protection of cultural heritage and values

The Victorian Government is committed to self-determination. Each action in the 10-year plan for industrial land includes its own approach to engaging with First Peoples. For example, the Department of Transport and Planning meets with RAPs regularly to understand and map cultural heritage and values in precincts and to implement pathways to protect and conserve cultural heritage and values in precincts.

Further information

For further information on planning for industrial land please refer to the Eonomic Growth Statement and the Melbourne Industrial and Commercial land use plan below.

Page last updated: 02/11/25