Melbourne 138-Home Project Nears Approval After a Decade

The long-awaited Melbourne 138-home development at Ferntree Gully may finally move ahead after years of uncertainty. The 7.55-hectare site at 29 Norvel Road, once part of an old quarry, has returned to the market with expectations of offers around $60 million.

Originally sold to China-based Hong Se International in November 2016 for about $40 million, the property was intended for a major housing estate. Although the company outlined plans for a large-scale project soon after purchase, the development never began. Now, nearly ten years later, a new sales campaign could see the long-stalled project revived.

The Scale and Appeal of the Melbourne 138-Home Development

Cushman & Wakefield, which is handling the sale, has described the land as one of Melbourne’s most significant residential infill opportunities of 2025. The approved plan allows for 138 residential lots, and the marketing campaign will continue through December. If a deal is finalised next year, it will mark a full decade since the property last changed hands.

Joe Kairouz of Cushman & Wakefield, appointed alongside Hamish Burgess and Leon Ma, said the site had already generated strong interest. “We’ve received solid inquiries from established developers, fund-backed groups, and local syndicates who recognise the scarcity of well-located residential land of this scale in Melbourne’s east,” he explained.

The project appeals especially to buyers planning a master-planned, large-scale subdivision, either through individual lot sales or house-and-land packages. According to Kairouz, the site offers a rare opportunity to create diverse housing options in a sought-after part of the city.

A Strategic Location for Growth

Ferntree Gully, located 30 kilometres east of Melbourne’s CBD, sits at the foothills of the Dandenong Ranges. It is already a well-established suburb, but space for large residential developments has become extremely limited. The Norvel Road property’s proximity to transport and amenities makes it even more attractive to developers.

Residents have easy access to Ferntree Gully train station, as well as nearby Boronia shops and station, located just 1.6 kilometres away. The northern edge of the land borders Blind Creek and a preserved bushland area, providing access to the popular Blind Creek Trail.

Hamish Burgess, also of Cushman & Wakefield, called the listing “an exceptionally rare landholding of this scale.” He noted that its combination of size, location, and approved residential plans makes it one of the few remaining major development opportunities in Melbourne’s east.

Rising Property Values Boost Demand

The surrounding area has seen a steady rise in property values. According to PropTrack, the median house price in Ferntree Gully has climbed from $744,000 in 2019 to $908,500 in 2025. This growth strengthens the appeal of the Melbourne 138-home development to investors and builders hoping to meet ongoing demand for suburban housing.

Given Melbourne’s broader housing pressures, such infill sites are becoming critical to the city’s urban growth strategy. The Norvel Road parcel, described by Cushman & Wakefield as “the most significant residential infill development opportunity of 2025,” could play a vital role in providing new homes where infrastructure already exists.

If the campaign concludes successfully, the long-delayed project may finally begin construction, bringing fresh residential diversity and much-needed housing supply to Melbourne’s eastern corridor.