Second Stage of 300-Home Sunshine Scheme Completes
The second tranche of homes under a $200-million redevelopment of a former water corporation site in Melbourne’s west has completed.
The 12.5ha City West Water site at Sunshine North, 12km from the CBD, a former water utilities depot, was rezoned for residential use.
The first stage, dubbed Luma, was completed in July 2025. This second stage has delivered a tranche of 85 homes.
The project will ultimately deliver around 300 townhouses on, a mix of one to four bedrooms.
Also completed for the project is the 3600sq m Willowbark Park that includes playgrounds and picnic facilities.
The former City West Water site at 247-251 St Albans Road was earmarked for residential use after it was rezoned from public use to general residential and mixed-use.
The water corporation relocated in 2015 and the site was deemed surplus to requirements. Development Victoria then acquired the land for its residential housing development.
The site has transport links via St Albans Road, the Western Ring Road and the redeveloped Ginifer station.
Melbourne-based SAW Constructions delivered the first two stages.
Minister for Development Victoria and Precincts Harriet Shing said Sunshine’s population was expected to more than double over the next 30 years.
“As Melbourne grows, we need to grow well, and Luma is a wonderful example of how we are delivering a range of sustainable, connected, and well-designed homes for families,” Shing said.
Elsewhere, Development Victoria is working on its Riverwalk Werribee 197ha residential development.
The project, 31km west of the Melbourne CBD, is already home to 2500 residents. Development Victoria delivered 163 new lots at Riverwalk earlier this year, and a further 159 lots are to be delivered in 2026.
The state has invested $294 million in the project, adding to the $200 million already injected into Luma at Sunshine North.
At Altona North and Point Cook, the state has supported the delivery of 227 townhouses via Development Victoria.
