Costco Confirms $74m Pakenham Megastore Opening in 2027

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Costco is about to give Melbourne’s southeast a serious boost, with plans for a massive $74 million warehouse and mega fuel station in Pakenham.

Set to open in 2027, the site will sit on the corner of Greenhills and Koo Wee Rup roads, adding to Costco’s growing presence across Victoria. It joins the $118m flagship in Ardeer and existing stores in Ringwood, Epping and Moorabbin.

Colliers Melbourne East director Gordon Code says Costco’s decision to move into Pakenham is a big statement about the retailer’s growth plans.

“Costco is a destination retailer. People drive for miles to shop there. Once they lock in a site, the phone just lights up with businesses wanting to set up nearby,” he said.

According to Mr Code, Pakenham was the standout choice after Costco considered multiple sites. “This one wins hands down. It’s got direct freeway access and even a natural gas connection — which matters when you’re baking, roasting and preparing food at Costco’s scale.”

And the ripple effect is already starting. Colliers is fielding strong interest from businesses keen to piggyback off Costco’s presence.

“Moorabbin is a great example. Costco anchors Goodman’s Chifley Business Park, and rents in that area are about 20% higher than anywhere else — that’s the halo effect,” Mr Code explained.

The same thing happened in Ringwood, where commercial demand spiked after Costco opened in 2013, drawing national brands and bulky goods retailers chasing the guaranteed foot traffic.

Docklands, which hosted Australia’s very first Costco back in 2009, became an anchor for the entire precinct before it closed this year. The site was sold for $100m and is now being transformed into a $92m medical hub — proof of Costco’s long-lasting impact on Melbourne’s property scene.

Meanwhile, Ardeer has already cemented itself as the company’s Melbourne flagship. Opening in April with a huge 16,000sqm warehouse and the nation’s biggest Costco fuel station (38 pumps), the $118m site pulled in thousands on day one — along with some serious traffic jams.

Despite the gridlock, Mr Code says the draw is undeniable. “I’d fully expect Pakenham to follow the same playbook. Costco’s arrival will turbocharge commercial property values across the precinct.”

He added that the investment is a clear “vote of confidence” in Victoria at a time when global players are deciding their next moves.

“Victoria offers a strong mix — sustained population growth, a deep consumer base and lower operating costs compared to Sydney. Global retailers like Costco don’t make these calls lightly. They see Melbourne growing eastward and outward, and they want to be right in the middle of it.”

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