Australia’s major cities are facing rapid growth. Melbourne alone added an unprecedented 142,600 people in 2023-24, more than any other state capital and is projected to reach around 9 million by 2050 (the size of London today). This boom is driven by strong overseas migration, population ageing, and changes in household sizes. But housing supply has not kept pace: vacancy rates plunged to record lows (well below the 3% “balanced” benchmark) and rents have soared, especially in Sydney and Melbourne. Key trends shaping urban development include:
- Population growth and urbanisation. Australia’s population is increasingly concentrated in its big cities. Victoria’s capital alone grew 2.7% in 2023-24, and inner-city Melbourne is now one of the nation’s densest areas. To house this growth, cities must build more housing both “up” (higher densities, apartments) and “out” (new suburbs and infill).
- Housing shortages. Long-term undersupply has led to a housing crisis. Government reports note that new home completions in 2024 were near their lowest in a decade. The result is high prices: in late 2024, the typical household needed roughly half its income for a new mortgage (and a third for rent). Planners and developers are under pressure to deliver thousands of new dwellings in the short term, while also adding public and affordable housing.
- Sustainability and climate goals. Cities are also responding to climate targets. The City of Melbourne has pledged to run on 100% renewable energy by 2030 and reach net-zero emissions by 2040. New developments are expected to be energy‑efficient, climate-resilient and water-sensitive. For example, the Fishermans Bend redevelopment, Australia’s largest urban renewal precinct, is designed as a “world-leading” sustainable community, with parks, wetlands and a 6‑Star Green Star community rating. Federal and state climate policies (and community demand) are pushing urban growth to be greener and better-planned.
These trends are especially acute in Melbourne, but are echoed nationwide, which means that development is central to the future of our cities. In the next sections, we look at some major projects underway, how development is managed through partnerships, and what it all means for local people.
Major recent and ongoing projects
- Metro Tunnel and Suburban Rail Loop (SRL). The $11 billion Metro Tunnel will add a new 9 km rail line under the CBD with five stations, relieving congestion on Swanston Street. Its Tunnels & Stations package was awarded as a PPP to the Cross Yarra Partnership (a consortium of Lendlease, John Holland, Bouygues and others). Looking forward, the planned Suburban Rail Loop will form an orbital line connecting suburbs (e.g. Cheltenham to Box Hill first, Melbourne Airport line later). The state government notes this will deliver “more transport, more homes and more jobs”, linking every major train line and enabling new high-density precincts at stations.
- Fishermans Bend precinct. This 480 ha zone on the Yarra’s south bank is being transformed from industrial land into a mixed inner-city neighbourhood. By 2050, it is planned to house ~80,000 people and jobs. Fishermans Bend sets new benchmarks in sustainable design; for example, the Montague precinct earned a 6‑Star Green Star rating in 2025. It includes new parks, schools, tram lines, and even planning for a future rail tunnel. The project is a mix of government infrastructure and private development: over 90% of the land is privately owned, requiring close coordination with councils and developers.
- Melbourne Quarter and CBD tower projects. The redeveloped docklands and CBD fringes feature new high-rise offices, apartments and public spaces. For instance, Lendlease’s $2.9 b precinct Melbourne Quarter on Lonsdale Street has set ambitious sustainability targets (6‑Star Green Star ratings for design). New apartment towers (from Docklands to St Kilda Road) are adding thousands of homes. Equally, large infrastructure like the West Gate Tunnel, airport rail link, and level crossing removals are part of the broader growth story.
Nationally, other cities mirror this trend:
- Sydney Barangaroo and Metro. Sydney’s 22 ha Barangaroo harbour redevelopment (on old docklands) is a showcase mixed-use project. It will have ~3,500 homes and 20,000 jobs once complete, blending new parks (Barangaroo Reserve) with towers for offices, retail and a luxury hotel. Sydney is also building a new Metro rail system and the WestConnex motorway to keep up with growth.
- Brisbane and other cities. Brisbane is completing its Cross River Rail and planning urban renewal at the waterfront. In Perth, Adelaide and Canberra, developments range from light rail extensions to suburban satellite cities. Across Australia, green buildings are rising (offices certified with high NABERS/Green Star ratings) and mixed-use “city-fringe” precincts (combining living, working and leisure) are multiplying.
These projects underline a common point: building the infrastructure (trains, roads, utilities) and housing (apartments, communities) to meet demand. They also involve complex delivery models, which lead to how “construction joint ventures” are used in practice.
How are these getting built?
Many large developments and infrastructure projects in Australia are delivered by partnerships or consortia rather than a single builder. By definition, a joint venture (JV) involves two or more parties joining forces for a specific project. In construction, this allows firms to pool resources, share expertise and spread risk on a massive job.
In practice, major transport or property projects are often done this way. As one review explains, a Construction Joint Venture “refers to the collaboration of at least two construction organisations… wherein they share project risks, knowledge and resources”. The Victorian Metro Tunnel illustrates this: its largest package was contracted to Cross Yarra Partnership, a consortium of Lendlease Engineering, John Holland, Bouygues Construction and others.
Likewise, the Suburban Rail Loop tunnelling will be built by international and local contractors working together. Even precinct developments can be joint ventures between landowners, developers and financiers.
This is where construction joint venture partners play a role. These partners are essentially strategic alliances formed to tackle big developments. By teaming up, property developers and construction companies can handle complex projects that no single firm could do alone. For instance, a developer may partner with a builder and an investor to share land, cash and expertise.
What does this mean?
The current wave of development is reshaping Australian cities. For local homeowners and renters, it brings both opportunity and adjustment: more choices and modern homes on one hand, but also a change in the neighbourhood fabric. For investors, it signals growth prospects (and competition). And for planners and councils, it underscores the need for smart, integrated planning so that transport, housing and sustainability goals go hand in hand.
