LGA · VIC · GIPPSLAND

Baw Baw Shire

Gippsland growth LGA anchored on Warragul + Drouin and the proposed $500M hospital. Roughly 130km from Melbourne CBD.

Gippsland Hotspotting refresh: Jun 2026 130km from CBD

Investment thesis

What this LGA is for

Western Gippsland LGA ~130km east of Melbourne, covering Warragul (commercial heart), Drouin, Trafalgar, Longwarry, Yarragon and the Mount Baw Baw alpine area. Gross Regional Product $3.824 billion in 2024. Population forecast to reach 93,740 by 2046. Construction, agriculture and tourism are the dominant economic drivers. The major infrastructure pipeline includes a proposed $500 million hospital to serve the broader region, multiple new estate developments and tourism upgrades. Median yields in the mid 4% range with sub-$650K entry across the LGA.

Key numbers

Snapshot of the Baw Baw Shire economy and demographics.

Gross Regional Product (2024)

$3.824B

Forecast population by 2046

93,740

East of Melbourne CBD

130km

Median yields

Mid 4%

Infrastructure pipeline

The committed and in-flight infrastructure spend reshaping the LGA.

$500M

Hospital proposal

Proposed new hospital to service the broader Gippsland region. Major employment + rental demand driver if delivered.

Major

Mount Baw Baw alpine tourism

Alpine resort and tourism precinct underpinning seasonal economy.

Major

Major retail proposals

Several retail developments proposed across Warragul and Drouin centres.

Major

Princes Freeway (M1) spine

Direct CBD spine. Warragul-Melbourne ~1.5 hours by car.

Major

V/Line rail

Trafalgar, Warragul, Drouin all on the Gippsland V/Line. Sale-Melbourne service.

Major

Multiple new estate developments

New residential land releases in delivery. Sustains the corridor housing supply.

Suburbs in scope

Suburbs we actively track within Baw Baw Shire. House market data from PropTrack via Hotspotting LGA report (12 months trailing).

Suburb	Median (house)	Yield	1yr growth	Vacancy	Read
Warragul	$647K	4.50%	-0.4%	1.10%	LGA commercial heart. Deepest market (445 sales/yr). Unit median $430K at 5.1%
Drouin	$638K	4.50%	+2.5%	1.20%	Established growth town. 392 sales/yr. Unit median $460K at 5.1%
Yarragon	$613K	4.50%	-0.4%	1.30%	Village pocket. 5-year avg +8.2%
Longwarry	$588K	4.60%	-0.4%	1.30%	Western corridor town
Trafalgar	$573K	4.70%	+4.3%	1.20%	Most affordable entry. Strongest yield

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