The former Preston Bunnings site now home to Panda Mart has been flagged for housing by the Victorian government, with experts saying the Melbourne land is a development goldmine.
Melbourne’s wild Panda Mart hub is sitting on a development goldmine that could one day see the former Preston Bunnings site transformed into high-density housing.
The site at 120 Chifley Drive, near Northland, is currently leased to Panda Mart, but property records indicate it remains owned by Bunnings Properties.
Panda Mart signed a lease for the former Preston Bunnings warehouse in late 2024 and opened the store in September 2025, filling more than 8000sq m with more than 50,000 low-cost products.
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While no formal plans have been lodged, the former Bunnings warehouse is listed by the Victorian Government as one of the sites being assessed under its Unlocking Strategic Sites pathway, part of a push to deliver more housing in established suburbs.
The program is targeting underutilised land including former retail, school and commercial sites that could deliver thousands of new homes.
But buyers hoping to cash in on the shift have been warned to tread carefully.
Panda Mart now occupies the former Bunnings warehouse at 120 Chifley Drive, Preston, a site tipped for future housing.
Australian Leading Buyers Agents director Thomas Misfud says the Preston site is valuable, but warns apartments may not deliver strong growth.
Australian Leading Buyers Agents director Thomas Misfud said the site itself was undeniably valuable, but apartment development on the site may not deliver strong returns.
“It’s a seriously valuable piece of land,” Mr Misfud said.
“But from an investment point of view, it’s a different story.
Inside Panda Mart Preston, where more than 50,000 low-cost items fill the former Bunnings warehouse.
“Investors buy apartments for growth, and that type of high-density stock doesn’t typically deliver the same capital growth as land-based assets.”
Mr Misfud said the Panda Mart branding masked the underlying value of the land.
“Whether it’s Panda Mart, Bunnings or something else entirely, that’s secondary,” he said.
“People stay in these suburbs because of what they represent, the community, the lifestyle and the access to everything around them.”
Panda Mart has taken over the former Bunnings site in Preston, drawing strong crowds since opening.
He said the growing focus on sites like the former Bunnings warehouse reflected broader economic conditions.
“If government is stepping in to increase density, it’s because the fundamentals stack up, migration, jobs, productivity, all of that activity in that corridor makes sense,” Mr Misfud said.
He added that while the projects may appeal to owner-occupiers, they came with risks.
“There is definitely a risk of oversaturation,” Mr Misfud said.
“But at the end of the day, people still need somewhere to live.”
Baseline Financial director Ari Levinson says sites near major shopping centres are prime targets for higher-density housing.
The Panda Mart marks the former Bunnings warehouse in Preston, now part of Melbourne’s housing conversation.
Baseline Financial director Ari Levinson said sites anchored by major retail and transport infrastructure were becoming some of the most sought-after development opportunities in Melbourne.
“From a development perspective, sites near shopping centres are very strong opportunities,” Mr Levinson said.
“They’re typically in high-activity areas where councils and government are comfortable increasing density, and they’re usually close to public transport.
“When you add more people into those precincts, it activates the whole area, more jobs, more spending and a stronger overall environment.”
Mr Levinson said building around established infrastructure was often more effective than expanding into outer growth areas.
“It’s often much easier to build upwards in these locations than to keep pushing out,” he said.
“If the infrastructure is already there, shops, parks and transport, it’s one of the most effective ways to activate infill locations.”
First National Real Estate Narre Warren partner Shannon Hynd says proximity to major retail hubs is driving land value.
First National Real Estate Narre Warren partner Shannon Hynd said similar demand was already evident around major retail hubs in Melbourne’s southeast.
“It really comes down to attraction and pull,” Mr Hynd said.
“When you’ve got something like Fountain Gate, it brings huge numbers of people into the area every single day, and that creates a ripple effect across everything around it.
“If the big operators are there, everyone else wants to be there too.”
Mr Hynd said proximity to major retail centres had become a key driver of land value.
A former Bunnings site in Narre Warren is being transformed into new commercial space near Westfield Fountain Gate.
“That proximity is everything,” he said.
“Westfield brings the people, and the surrounding real estate benefits off the back of that.”
He said developers were increasingly focused on factors such as foot traffic and population density.
“It used to be about securing land and doing what you want with it, but now it’s much more nuanced,” Mr Hynd said.
“Those factors that drive real activity in an area are becoming more important in deals.”
Commercial sites near Melbourne shopping centres are being eyed for housing, with potential to unlock thousands of new homes across Victoria.
For now, the former Bunnings warehouse remains home to Panda Mart.
But its inclusion in the state’s housing pathway highlights how Melbourne’s most recognisable retail sites are increasingly being viewed as future development plays in suburbs where land has become too valuable to ignore.
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