Sunbury’s $2bn town centre: What’s coming, who’s buying and how it will transform Melbourne’s northwest
The future Sunbury Town Centre shows a retail precinct anchored by Coles, Kmart, ALDI and Guzman y Gomez.
A $2bn retail surge is on the way to one of Melbourne’s fastest-growing suburbs — and it’s already drawing in the major retail players.
Coles has signed on, Kmart could return and McDonald’s, Aldi, Guzman y Gomez and BP all want in.
Now, a 10.3ha permit-approved town centre site dubbed Sunbury South Town Centre has hit the market, offering what agents say is one of the last chances to deliver a major retail precinct in the city’s booming north.
Set along a 380m stretch of Sunbury Rd — one of the region’s busiest arterials with 17,000 vehicles daily — the site has already drawn interest from institutional investors, private syndicates and experienced retail developers.
RELATED: Insurance trap catching Melb homeowners off guard
North Melbourne bin bandit strikes apartment buildings
‘Once we bought this place it put work into perspective’
Retailers are also lining up, with multiple major brands reportedly keen to secure a slice of the action.
Colliers National Director Tim McIntosh said the demand from both tenants and developers was already “on the ground”.
“There just isn’t another opportunity like this in Melbourne’s north,” Mr McIntosh said.
“The demand is already there — and this site is ready to go.”
Located 33km from the CBD, Sunbury is one of Melbourne’s fastest-growing suburbs, with a projected population of more than 105,000 by 2046 and increasing demand for retail, transport and service
By 2046, Sunbury’s population is forecast to more than double from 44,000 to over 105,000 residents, according to Hume City Council.
Retail expenditure in the area is tipped to soar from $1.15bn in 2024 to $2.45bn by 2041.
But despite that growth, the region has remained undersupplied — particularly when it comes to full-line supermarkets, discount department stores and large-format retailers.
Coles is already secured through an agreement for lease.
Kmart previously signed on, and while that deal has expired, discussions to bring them back are ongoing.
“We’ve spoken with Kmart — they’re still very interested,” Mr McIntosh said.
Sunbury South Town Centre has two confirmed major tenants Coles and Kmart.
The town centre’s design includes a dedicated bus interchange linking directly to Sunbury station, aligning with the state government’s plan to boost public transport frequency as part of the Metro Tunnel rollout.
Other retailers including Aldi, McDonald’s, BP and GYG have expressed interest in tenancies, particularly along the high-exposure stretch of Sunbury Rd.
Mr McIntosh said the precinct could be delivered in stages, allowing developers to unlock value progressively as demand continues to rise.
“This isn’t speculative. The brands are ready. The population is growing. And the town centre is needed now.”
Developers are already fielding interest from major national tenants in the Sunbury area.
Stonebridge Property Group’s Julian White said as the population expands, demand for local shopping, dining, and essential services will rise, positioning this site as a vital retail and commercial hub for Sunbury’s growing community.
“The lack of full-line supermarkets, large-format retail, and entertainment precincts in the area presents an immediate opportunity for new entrants to capture market share in an underserviced region,” Mr White said.
Sunbury is set to benefit from the Metro Tunnel, with more frequent and reliable services connecting the suburb to Melbourne’s CBD and making the new town centre more accessible to public transport users.
Sunbury was once seen as the fringe of Melbourne, but with new estates, freeway upgrades and public transport expansion, it’s increasingly seen as part of metro Melbourne.
The site is being sold by Colliers and Stonebridge Property Group via an Expressions of Interest campaign closing at 2pm on May 8.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Government gives up on one million renters in latest budget
Rental option many tenants don’t know about
Aussies now more confident they’ll escape mortgage prison in 2025
david.bonaddio@news.com.au
