Baw Baw Shire, anchored by Warragul and Drouin, is one of Victoria’s fastest-growing peri-urban regions. Located just 90 minutes from Melbourne CBD, the area combines metropolitan access with regional lifestyle appeal. This has fuelled population growth, strong housing demand, and a steady pipeline of infrastructure investment.
Economic Conditions
Baw Baw Shire’s economy has expanded rapidly over the past five years. Gross Regional Product (GRP) grew from $2.10 billion in 2019 to $3.31 billion in 2024 — a 57.6% increase. This is among the strongest growth rates in regional Victoria, outpacing Ballarat (+21.7%), Bendigo (+20.1%), and Shepparton (+17.7%).
The main drivers include new residential development, high construction activity, and continued population inflows from metropolitan Melbourne.
Infrastructure Investment
Several significant projects are influencing the region’s trajectory:
- Transport Upgrades: A $3 million federal commitment to reduce congestion on the Princes Highway and improve access between Warragul and Drouin.
- West Gippsland Hospital Redevelopment: A planned 230-bed acute facility as part of a $320 million state program, boosting health services and local jobs.
- Council Capital Works 2024/25: $43 million dedicated to roads, sport, and community facilities, improving amenity across the Shire.
- Growth Area Planning: 2,400 hectares of land zoned for development, enabling ~20,000 new housing lots.
These investments highlight ongoing confidence in the Shire’s growth and service capacity.
Employment Structure
The employment profile demonstrates a balanced economy:
- Health Care & Social Assistance (14.7%) — supported by hospital services and aged-care demand.
- Construction (12.7%) — driven by housing development and infrastructure works.
- Education & Training (9.7%) — reflecting growth in young families and population inflows.
This mix provides resilience and aligns closely with the region’s expansion trends.
Property Market Performance
The residential property market has delivered sustained growth:
- Median house prices increased by ~35% over five years, averaging 6.2% annual growth.
- Median rents rose 28% over the same period, with current weekly rents averaging $550.
- Vacancy rates remain low at 2.4% in Warragul, compared to the regional Victorian average of ~3%. This supports gross yields of 4–4.6%.
Overall, the property market reflects a balance of capital appreciation, steady rental returns, and ongoing demand.
Outlook
- GRP has grown strongly and continues to outperform peer regions.
- Infrastructure commitments reinforce long-term service delivery and livability.
- Employment is diverse and underpinned by health, education, and construction.
- Housing demand remains supported by affordability and low vacancy rates.
Together, these factors indicate a resilient economy and a property market with strong fundamentals.
Essentia Projects in Baw Baw Shire
Essentia has an active presence in the region, with two key projects benefitting from these conditions:
- Bloomfield Estate, Nilma — a growing residential community supported by strong local amenity and economic growth.
- Altura Living, Drouin — a modern development well-positioned to meet demand for quality housing in one of Gippsland’s most dynamic growth centres.
Both projects are directly shaped by the economic momentum, infrastructure pipeline, and robust property fundamentals that continue to define Baw Baw Shire’s trajectory.
