Arden Central expands to 5,400 homes, with 4,000 for first-home buyers

More than 5,400 homes are planned beside Melbourne’s new Arden Station after the Victorian Government appointed Hamton and superannuation fund Hostplus to develop the inner-city precinct.

The revised target is more than 50 per cent above Arden Central’s original target of 3,500 homes. The 12-hectare site sits about 1.5 kilometres from Melbourne’s CBD and is expected to accommodate more than 10,000 residents.

The state’s announcement on Thursday said more than 4,000 of the homes would be designated for first-home buyers. A minimum of 10 per cent of the precinct’s housing is to be affordable housing, with other homes intended for families, key workers and students.

Construction is expected to begin in 2027, with about 1,700 homes scheduled for completion by 2033. A final completion date for the entire 5,400-home program was not provided.

Housing tied to transport and services

Arden Central is next to Arden Station on Melbourne’s Metro Tunnel line, placing the proposed homes within a short train trip of the CBD and major employment areas.

The development is also planned to include 5.5 hectares of open space, shops, hospitality venues and a 5,000-capacity live music venue. Melbourne Victory intends to establish a campus in the precinct, including facilities for its women’s academy and youth pathway program.

The Victorian Government has secured two sites next to the station for a vertical public secondary school. It said this would be the first government secondary school built in the City of Melbourne since University High School was founded in 1910. Land has also been identified for a possible future primary school.

The combination of housing, transport and schools is important because large residential targets do not automatically create functioning neighbourhoods. New residents need access to education, open space, shops and employment without every trip depending on a car.

Part of a wider first-home buyer agreement

Arden has been nominated as an anchor location in a broader Commonwealth-Victoria housing agreement announced on Wednesday and referred to again by the Victorian Premier on Thursday.

The agreement is intended to unlock more than 66,000 homes across Victoria, including more than 25,000 reserved for first-home buyers. Around 41,000 additional homes would not carry that reservation.

The Commonwealth said it would provide $2 billion in concessional loans and $499 million in grants, with Victoria contributing at least another $499 million. Funding is intended to address infrastructure barriers such as roads, water and sewerage that must be resolved before housing can proceed.

The package includes $698 million for enabling infrastructure across greater Melbourne, supporting more than 47,000 homes, including 11,923 for first-home buyers. Another $91 million is allocated to regional infrastructure intended to support 5,800 homes, of which 1,900 would be reserved for first-home buyers.

Governments said buyers would begin moving into homes supported by the wider agreement from 2027–28. However, more project locations and details remain to be announced.

What buyers still need to know

The Arden announcement establishes a development team, dwelling target and indicative timetable, but it is not yet a release of homes for sale.

Important buyer details have not been published, including prices, apartment and townhouse sizes, income or residency conditions, how long homes will remain reserved, and whether resale restrictions will apply.

Prospective buyers should also distinguish this supply program from the Australian Government’s 5% Deposit Scheme. Reserving a newly built home for first-home buyers determines who can purchase it during a specified period; it does not by itself reduce the deposit, mortgage repayments or total purchase price.

Delivery will depend on planning, design, financing, infrastructure and construction over several years. The increase from 3,500 to more than 5,400 homes improves the proposed use of a well-connected site, but most of the dwellings remain part of a future pipeline rather than immediately available supply.

What it means for you

• More than 4,000 Arden homes are intended for first-home buyers, but applications and sales have not opened.
• Construction is expected to start in 2027, with about 1,700 homes completed by 2033.
• Buyers should wait for eligibility rules, pricing and contract conditions before making plans around the project.
• The precinct’s station, schools and open space could reduce transport costs for future residents.