Article | Future Cities
Business Insights | Precincts with purpose
How unlocking public-private partnerships is essential to shape Melbourne and Sydney’s future.
October 8, 2025
Melbourne and Sydney, as Australia’s gateway cities, are at a tipping point and poised to attract global capital seeking stable returns and urban transformation. With population growth, housing shortages, and infrastructure pressures mounting, the opportunity to co-design precincts that are vibrant, connected, and inclusive has never been more urgent.
At CBRE, we believe the future of our cities relies on delivering precincts with purpose that prioritise:
In both Victoria and New South Wales, governments are prioritising transport-oriented development (TOD) and strategic precinct planning but making these ambitions reality will hinge on purpose-led partnerships where government and industry collaborate early and make decisions backed by data and a shared commitment to community outcomes.
At CBRE, we believe the future of our cities relies on delivering precincts with purpose that prioritise:
- Transport connectivity
- Housing diversity
- Job creation
- Public spaces and services
In both Victoria and New South Wales, governments are prioritising transport-oriented development (TOD) and strategic precinct planning but making these ambitions reality will hinge on purpose-led partnerships where government and industry collaborate early and make decisions backed by data and a shared commitment to community outcomes.
Victoria’s priority precincts: Anchored in connectivity
The Victorian Government’s Plan for Victoria identifies 15 priority precincts, including Arden, Sunshine, Parkville, and the Richmond to Flinders Street corridor. These precincts are designed to deliver transformational change with more homes, better transport, and thriving local economies.
NSW’s infrastructure vision: Precincts that prioritise people
NSW’s $118.3 billion infrastructure pipeline, including $55.6 billion for Sydney Metro expansions and the Western Sydney Aerotropolis, is reshaping Sydney’s commercial real estate landscape. These investments unlock new opportunities for institutional capital, with increased demand for office, logistics, and mixed-use developments along key transport corridors. Gateway precincts benefit from improved connectivity, supporting higher yields and long-term capital growth. 
Housing innovation and living sector transformation
The recent CBRE Living Imperatives event underscored the urgency of addressing Australia’s housing crisis. With a projected shortfall of 262,000 homes by 2029, the need for scalable, innovative housing solutions is critical. This shortfall threatens not only affordability but also economic productivity, social cohesion, and infrastructure efficiency. CBRE’s Living Sectors team presented a compelling case for embracing new models of housing delivery that align with government priorities and community needs. These include Build-to-Rent (BTR), modular construction, and private credit financing—all of which offer viable pathways to accelerate housing supply and diversify tenure options.
Build-to-Rent (BTR) developments are gaining momentum across Australia, with Victoria leading the charge. For investors, CBRE research forecasts BTR delivery is likely to be 6,000pa, representing 10% of apartment build. These projects offer long-term rental stability, professional management, and community-focused amenities, making them ideal for urban precincts and transport-oriented developments.
Modular construction presents another opportunity to reduce build times and costs while maintaining quality. CBRE has identified modular housing as a key enabler for regional and urban infill sites, particularly where traditional construction is constrained by labour shortages or site complexity.
Private credit financing is also emerging as a critical tool to unlock housing projects that may not meet traditional bank lending criteria. CBRE’s Debt & Structured Finance team reports that private credit now accounts for over 25% of residential development debt, offering flexible funding structures and faster deployment.
The role of purpose-led partnerships
Fatima Mohamed, CBRE’s Director of Government Engagement Victoria, advocates for stronger collaboration between government and industry to educate policymakers and align priorities. "We need to demonstrate the credibility of these models through data and case studies, and ensure that planning frameworks and incentives are in place to support their adoption," she says.CBRE recommends that government decision makers consider the following actions:
- Support planning reforms that enable BTR and modular housing in priority precincts
- Facilitate access to private credit through streamlined approvals and risk-sharing mechanisms
- Invest in pilot projects that showcase innovation and community outcomes
- Establish cross-sector taskforces to align housing delivery with infrastructure and transport planning.
By embracing these innovations, governments can unlock new housing supply, improve affordability, and create resilient communities that thrive in the face of demographic and economic change.
CBRE’s role: Bridging data, design, and delivery
Fatima sees data as the bridge between public accountability and private sector agility. “Robust data empowers governments to make defensible investment decisions and demonstrate value to the community,” she notes.Ash Nicholson, CBRE’s Director of Government & Industry NSW, adds, “The most successful precincts are born from strong partnerships between government and the private sector. It’s about aligning commercial goals with community outcomes.”
Co-designing the future
Melbourne and Sydney are at a crossroads. The success of their precincts depends on early collaboration, shared purpose, and creative problem-solving. “We’re here to bridge the gap,” Fatima says. “To bring the right people together and unlock the full potential of our cities."“A genuine partnership must be win-win. When government and industry align around a common vision, we can create places that are not only functional—but unforgettable,” Ash adds.
