Part of Melbourne Infrastructure Impact: This guide is part of our comprehensive Melbourne Infrastructure Impact Property Investment Guide
Melbourne Level Crossing Removals Property Impact 2026
Level crossing removal program (85 crossings by 2025) drives 8-15% property gains within 1km. Completed projects: Carnegie (+12%), Noble Park (+14%), Bentleigh (+10%) show clear pattern. Upcoming: Glenroy (2026), Reservoir (2027), Preston (2025). Reduced congestion, modern stations, increased train frequency boost amenity. Buy 1-2 years pre-construction for maximum upside.
Quick Answer
How to invest in level crossing removal suburbs?
Completed projects for stability: Carnegie ($1.05M), Bentleigh ($1.2M), Noble Park ($680k) - immediate gains realized. Upcoming for growth: Glenroy ($720k, 2026), Reservoir ($750k, 2027), Preston ($880k, 2025). Buy within 1km of removed crossings. Underground preferred over elevated. 5-7 year hold through construction.
Completed Projects - Proven Gains
Case Studies
Major projects completed 2016-2024 show consistent property value uplift. Traffic congestion eliminated, train frequency increased, modern station precincts.
Completed Level Crossing Removals
| Suburb | Pre-Removal | Current (2026) | Gain |
|---|---|---|---|
| Carnegie | $930k | $1.05M | +12.9% |
| Noble Park | $590k | $680k | +15.3% |
| Bentleigh | $1.08M | $1.2M | +11.1% |
| Springvale | $680k | $780k | +14.7% |
Carnegie - Underground Success
Underground station (Glen Huntly Rd crossing removed). Pre-removal $930k (2018) to $1.05M (2026) = +12.9%. Beyond natural growth - comparable suburbs gained 8%. Amenity improvements: reduced congestion, modern station, pedestrian plaza. Premium for underground aesthetics vs elevated alternatives.
Noble Park - Elevated Transformation
Elevated rail (Princes Hwy crossing removed). Pre-removal $590k (2019) to $680k (2026) = +15.3%. Highest gain - undervalued suburb before removal. Traffic flow transformation on major arterial. Some visual concerns with elevated structure but gains prove benefits outweigh.
Bentleigh - Established Premium
Underground station (Centre Rd crossing). Pre-removal $1.08M (2017) to $1.2M (2026) = +11.1%. Already premium suburb - removal enhanced status. Modern retail precinct. Demonstrates crossing removal benefits all price points.
Upcoming Projects - Growth Opportunities
Project Pipeline
Remaining projects complete by 2027. Pre-construction phase optimal for entry - capture gains through construction to maturity.
Upcoming Level Crossing Projects
| Suburb | Current Median | Completion | Anticipated Gain |
|---|---|---|---|
| Preston | $880k | 2025 | +10-12% |
| Glenroy | $720k | 2026 | +12-15% |
| Reservoir | $750k | 2027 | +12-14% |
| Coburg | $920k | 2025 | +8-10% |
Investment Opportunities
Glenroy ($720k, 2026 completion): Northern suburbs value play. Elevated rail, Pascoe Vale Rd crossing. Family suburb, large blocks. Anticipated +12-15% by 2028. Buy now for pre-construction entry.
Reservoir ($750k, 2027 completion): Gentrification underway. Elevated rail, multiple crossings. Longer construction period (disruption risk) but higher upside. +12-14% by 2029.
Preston ($880k, 2025 completion): Inner-north premium. Underground station. High St activation. Completion imminent - gains realize 2026-2028. +10-12% near-term.
Coburg ($920k, 2025 completion): Established premium suburb. Bell St crossing. Moderate gains +8-10% - already priced partially. Buy for stability rather than high growth.
Investment Strategies
Proximity Strategy
0-400m from removed crossing: Maximum benefit +12-15%. Direct traffic reduction, walk-to-station. Apartments and houses both benefit.
400m-1km from crossing: Moderate benefit +8-12%. Improved area amenity, easier car access. Houses preferred - land value play.
1-2km from crossing: Minor benefit +3-5%. General suburb improvement but not directly impacted. Only if other strong features.
Timing Strategy
Pre-Announcement: Maximum opportunity (rare). Buy before project announced. Requires insider knowledge or speculation.
Announced, Pre-Construction (Current Glenroy, Reservoir): Optimal timing. Premiums 3-5% already priced, capture remaining 8-12% through construction and maturity.
During Construction: Challenging. Disruption, difficult resales, rent drops 5-10%. Only if significantly discounted 10-15% below comparable.
Post-Completion (Current Carnegie, Bentleigh): Gains realized, lower risk. Buy for stability and continued area improvement. Growth 5-8% ongoing.
Underground vs Elevated
Underground Preference: Carnegie, Bentleigh, Preston command +3-5% additional premium vs elevated alternatives. Better aesthetics, pedestrian access, retail activation. Higher construction costs but better outcomes.
Elevated Acceptance: Noble Park, Springvale, Glenroy show strong gains (+14-15%) despite visual concerns. Traffic benefits equivalent to underground. Budget-conscious investors accept trade-off.
Property Type Selection
Apartments
Best: Within 400m of new stations (Carnegie, Bentleigh, Preston). Modern developments capitalize on improved transport. Yields 4.2-4.8%. Suit professionals, singles. Oversupply risk - developers target station precincts.
Houses
Best: 400m-1km from removed crossings. Land value appreciation, family appeal. Carnegie, Bentleigh houses on 400-600sqm see strong gains. Yields 3.5-4.2%. Limited stock near stations - good scarcity value.
Mixed-Use / Retail
Station precincts activate retail. Carnegie, Bentleigh retail values +20-30%. Ground floor apartments with retail below benefit. Commercial/residential mix suits investors seeking diversification.
Risks
Construction Disruption: 18-36 months depending on project complexity. Noise, dust, access restrictions. Rents drop 5-10% during construction. Difficult resales. Requires holding through disruption.
Completion Delays: Some projects delayed 6-12 months beyond original timelines. Political/funding issues. Extended disruption impacts returns.
Oversupply: Developers target level crossing removal suburbs. High-density apartment approvals near stations. Carnegie, Bentleigh see 500+ apartments 2018-2024. Differentiate with quality or focus on houses.
Visual Impact (Elevated): Some buyers prefer underground aesthetics. Elevated structures (Noble Park, Glenroy) face minor buyer resistance. 3-5% discount vs underground alternatives.
Traffic Displacement: Removing one crossing may push traffic to adjacent roads. Check overall traffic management plans. Some side streets see increased congestion.
Related Articles
- Preston: Value Inner City Investment - Level crossing removal 2025
- Reservoir: Gentrification Investment - Multiple crossings removed 2027
- Noble Park: Affordable South-East Investment - Completed elevated rail case study
- Melbourne Metro & SRL Impact - Broader rail infrastructure analysis
Frequently Asked Questions
Completed removals drive 8-15% gains within 1km. Carnegie (+12%), Noble Park (+14%), Bentleigh (+10%) show pattern. Reduced congestion, improved amenity, train frequency increases. Properties within 400m of elevated/underground stations gain most. Pre-construction purchases capture maximum upside.
Completed projects (buy for stability): Carnegie ($1.05M), Bentleigh ($1.2M), Noble Park ($680k). Upcoming projects (buy for growth): Glenroy ($720k, 2026), Reservoir ($750k, 2027), Preston ($880k, 2025). Within 1km of removed crossings for premium.
85 crossings removed by 2025 (program complete). Major projects: Glenroy 2026, Reservoir 2027, Preston 2025. Post-completion gains peak 2-4 years after opening. Buy 1-2 years pre-construction for best timing. Operational suburbs show immediate value lift.
Construction disruption 18-36 months: noise, access issues, rent drops 5-10%. Oversupply risk - developers target station precincts. Visual impact of elevated structures (some buyers prefer underground). Requires 5-7 year hold through construction to maturity.
Underground (preferred): Carnegie, Bentleigh - higher premiums +12-15%, better aesthetics. Elevated: Noble Park, Springvale - moderate premiums +8-12%, some visual concerns. Both improve traffic flow equally. Underground suburbs command 3-5% additional premium vs elevated.
Level crossing removal areas: +8-15% additional gain beyond standard train premium. Reduced congestion, increased train frequency, modern stations. Total premium: train proximity 10-12% + crossing removal 8-15% = 18-27% vs non-train suburbs. Compounding effect maximizes value.
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