Night view of the newer part of Melbourne across the Yarra River.

Malaysian developers redefining urban renewal in Australia

By Joseph Wong

As Australia accelerates its urban renewal agenda with bold investments and policy reforms, some of its most ambitious redevelopment projects are being led by none other than Malaysian property developers. These developers—renowned for their expertise, sustainability-driven designs, and global vision—are reshaping the skylines of Melbourne as well as Perth and Sydney. 

Malaysian property giants like SP Setia Bhd, Gamuda Land, OSK Property and UEM Sunrise Bhd are carving out a reputation for delivering large-scale, innovative projects in Australia's major cities. These developments are not only engineering marvels but also exemplify global best practices in sustainability, urban integration and community design.

Gamuda Land, the property arm of Gamuda Bhd, is spearheading The Canopy on Normanby within Fishermans Bend—Australia’s largest urban renewal project. Covering over 1,186 acres just 1.2 km from Melbourne's CBD, the development is a benchmark for green urban living. The Canopy on Normanby comprises 213 units and integrates biophilic architecture, solar power systems and a 32,000 sq ft public park featuring over 6,000 native trees. This transformation, done in collaboration with local authorities, embraces nature and carbon-conscious design principles.

Focusing on the 568-acre National Employment and Innovation Cluster (NEIC), home to the former General Motors Holden (GMH) site, the redevelopment will deliver a range of upgrades along Turner Street. This marks the first step in transforming the area into a key multi-modal movement corridor linking the former GMH site to the central city and other innovation precincts.

The facade view of Aurora Melbourne Central at night.

The project focuses on four key areas:

• Accessibility – A dedicated bike and pedestrian path will connect Lorimer Street to Salmon Street along Turner Street, improving safety and access for cyclists and pedestrians.
• Creative placemaking – Engaging and dynamic experiences will be introduced, including the creation of a temporary placemaking hub to host events and activities.
• Greening – Strategic planting will help establish a more mature tree canopy, enhancing the environmental quality of the area.
• Digital infrastructure – Smart infrastructure such as sensors, smart poles, and integrated art technology will support future innovation within the renewal precinct.

This project is expected to act as a catalyst for the long-term transformation of the precinct into a centre for innovation in advanced manufacturing, engineering, and design—ultimately supporting a projected population of 80,000 residents. The Canopy on Normanby has a gross development value of A$180mil (about RM488mil) is Gamuda Land’s second undertaking in Melbourne. The developer’s inaugural Melbourne project is 661 Chapel Street, which won the best Commercial and Residential Design at Architectural Design’s 2019 Good Design Awards

Another major player in the Australian property scene, SP Setia’s most recent addition to the Melbourne skyline is Sapphire by the Gardens, which has a GDV of A4960mil. Positioned adjacent to the iconic Carlton Gardens and within walking distance of the Melbourne Museum and the Royal Exhibition Building, this luxury residential development showcases SP Setia’s international design flair and deep understanding of urban lifestyle demands.

Sapphire By The Gardens is the fourth project to be developed by SP Setia.

Sapphire by the Gardens marks SP Setia’s fourth project in Melbourne, with its fifth development—Atlas Melbourne—currently underway. Located at 383 La Trobe Street in the heart of the Melbourne CBD, Atlas Melbourne occupies 30,677 sq ft of freehold land and is set to become a 73-storey mixed-use landmark. The project features a residential tower atop a podium that includes a foyer, retail outlets on the ground and first floors, and an extensive range of residential amenities.

Atlas Melbourne will comprise 839 residential units, ranging from studios and one- to three-bedroom apartments to sub-penthouses and a luxury penthouse—catering to a wide spectrum of urban dwellers.

SP Setia’s other completed Melbourne developments include Fulton Lane (completed in 2015), Parque (2016), and Uno (2023), reinforcing the company’s strong and growing presence in Australia’s competitive property market. The developer currently has projects with a total GDV of A$2.3bil to date.

OSK Property’s Melbourne Square, a RM5.63bil mixed-use precinct, is one of the largest Malaysian-led real estate ventures in Australia. With over 1,400 apartments, commercial office space and public amenities, it signals Malaysia’s growing influence on Melbourne’s urban development landscape. 

In October 2023, OSK Property launched BLVD, a 73-storey apartment tower with a GDV of A$656mil. As the second component of Melbourne Square, it comprises 591 units with built-ups ranging from 538 sq ft to 1,905 sq ft. 

UEM Sunrise’s Aurora Melbourne Central and Subiaco Oval project in Perth further cement the presence of Malaysian developers across Australia’s metropolitan hubs.

Other developers include Malaysian Resources Corporation Bhd, Matrix Concepts Holdings Bhd and Eco World International Bhd. In total, Malaysian developers have billions of ringgit worth of projects in Australia alone. In addition, big boys like IGB Bhd has hotels overseas like Tank Stream Hotel in Sydney, Australia as well as St Giles London and St Giles Heathrow in the UK. 

Challenges in the Australian market

OSK Property's Mebourne Square is one of the largest Malaysian-led real estate ventures in Australia.

Despite their success, Malaysian developers operating in Australia are not immune to market headwinds. Australia recently announced a two-year ban (from April 2025 to March 2027) on foreign purchases of existing residential properties to cool down skyrocketing home prices. While the ban does not affect new developments like those by Malaysian developers, analysts warn of potential long-term ripple effects.

CIMB Securities noted that the absence of foreign buyers from the secondary market could disrupt the broader property upgrade cycle. However, in the short term, the impact on ongoing and upcoming projects is expected to be minimal, especially as developers pivot to target local and first-home buyers.

Housing affordability in Australia is also at a crisis point. Only 10% of housing is considered genuinely affordable for median-income families, according to a recent Housing Affordability Report by ANZ and CoreLogic. High interest rates, inflation and rising construction costs are further squeezing demand.

Nevertheless, some see opportunity in adversity. CIMB suggests that the ban might shift foreign investment toward new housing supply—precisely the segment Malaysian developers are engaged in. “This could work in their favour, provided they continue delivering value-driven, energy-efficient homes that align with local needs,” the firm noted.

The broader Malaysian footprint

With a growing number of Malaysian property developers making their mark across Australia’s urban landscape (as well as other nations), it is evident that the nation’s real estate players have evolved into globally competitive forces. Their involvement in high-profile, complex projects—from mixed-use precincts to green-certified residential towers—demonstrates a level of expertise and vision that aligns with the world’s best. These developers are no longer just participating in international markets. They are helping shape them. For example, UEM Sunrise sold 252 serviced apartments and retail space at Aurora Melbourne Central to Scape Australia—the country’s largest provider of purpose-built student accommodation. This deal, worth RM365.5mil, enables UEM Sunrise to enhance its financial position while continuing to build its brand in the high-value Melbourne CBD real estate segment.

Gamuda Land, meanwhile, is intensifying its global expansion, aiming to launch five new overseas projects annually as part of a strategy to balance domestic and international revenue streams. Its ventures into the UK, including West Hampstead Central in London, are examples of how Malaysian firms are leveraging global demand for sustainable, urban lifestyles.

Designed with modern energy efficiency and environmental goals in mind, West Hampstead Central includes 101 units and features seamless access to London’s transport network, green spaces like Hampstead Heath, and top-tier schools. “We want to ensure every development we deliver—whether in Malaysia or abroad—reflects our values of sustainability, community and responsible growth,” Ngan Chee Meng, who was the Gamuda Land chief executive officer at the time, was reported to have said this.

Similarly, SP Setia and EcoWorld have also made headways with redevelopment and revitalisation projects in the UK such as iconic Battersea Power Station and London City Island redevelopments respectively. 

Lessons for Malaysia

What stands out from these overseas projects is the ability of Malaysian developers to navigate foreign regulations, meet world-class standards and deliver visionary, sustainable housing solutions. 

The success of home-grown companies in Australia as well as other world-class cities like London and Singapore is a testament to Malaysia’s maturing property development industry. By consistently delivering innovative, high-quality projects abroad, these developers have not only raised the profile of Malaysian real estate but also set a benchmark for excellence that inspires confidence at home and overseas. Their achievements reflect a broader shift—Malaysian developers are now regarded as serious players on the global stage.

This, however, contrast with Malaysia’s sluggish domestic renewal underscores the urgent need for structural reform and a collaborative urban renewal framework.

Malaysia’s ongoing debates over its Urban Redevelopment Act (URA)—while valid—must not become a barrier to addressing deep-rooted housing challenges. If Malaysian developers can transform blighted industrial zones into vibrant neighbourhoods overseas, there is no reason they cannot do the same in Klang Valley, Penang or Johor Bahru.

With political will, transparent frameworks, and community engagement, Malaysia can replicate the successes of its developers abroad. The talent, capital, and expertise are already in place. What remains is an ecosystem that rewards innovation and delivers equitable, liveable cities for all Malaysians.

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