Marketed as the largest public transport project in Australia's history, the "Suburban Rail Loop" will connect every major train line in Melbourne and provide a direct rail link to Melbourne Airport for the first time.

Trains will travel up to 130km/h through dedicated tunnels with no level crossings, no interaction with the existing network, and a dedicated fleet of rollingstock, allowing trains to travel faster than ever before.

What you need to know about the $50 billion Suburban Rail Loop

• Work will start in 2022 with a completion date of 2051
• The rail loop will connect every major rail line from the Frankston line to the Werribee line via the Airport
• With at least 12 new underground stations, the Suburban Rail Loop will connect the Monash, La Trobe, Sunshine and Werribee National Employment and Innovation Clusters (NEIC) with key precincts such as Box Hill, Burwood, Broadmeadows and the Airport.

Victorian Premier Daniel Andrews made the announcement via his Twitter account.

“This project will change the way people think about their lives and their future – opening up jobs, study, and opportunities that simply aren’t an option now because it’s too hard to get across town," Premier Daniel Andrews said.

“It will save people time, money and hassle, and better connect Victorians to work, education and each other.”

CEO of the Real Estate Institute of Victoria (REIV), Gil King has welcomed the news.

“It is imperative for Melbourne’s liveability that governments continue to invest in quality and well-planned infrastructure. Both sides of politics have pledged investment in rail in the lead up to the November State Election including this announcement of the 90-kilometer underground rail loop," Mr King told WILLIAMS MEDIA.

"Despite being a long way off coming to fruition, these plans are bound to have a positive effect on the many suburbs along its route."

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Victoria announces Australia's 'biggest ever' rail project, but there's doubt it will ever see the light of day. Image by Simon East via WikiCommons.

Minister for Public Transport Jacinta Allan says it's the "next step in the transformation of the transport network".

“We’re removing level crossings, building bigger trains and delivering the Metro Tunnel – and we will build this new underground rail line to connect our suburbs," Ms Allan said.

If it goes ahead, the suburban rail loop could promote a housing boom around its 12 new stations, and curb growth on the urban fringe. 

Bringing down commute times would offer an attractive opportunity to many Australians who are currently locked out of major city property markets - they could simply move to regional areas and keep their inner-city jobs without sacrificing hours out of their day on their commute.

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Pictured: The $50 billion Suburban Rail Loop would bring down commute times in Melbourne. Image by Bidgee via WikiCommons.

Questions over funding, the seriousness of announcement

The project, which won't be completed until 2051, has divided opinion. While it has struck a chord with the public, experts are divided. 

Opposition Leader, Matthew Guy has questioned the seriousness of the announcement, saying there is "no use in talking about a project that will be delivered when Daniel Andrews is 93-years-old".

Listing agent and director of RT Edgar Toorak, Jeremy Fox agrees, telling WILLIAMS MEDIA he doesn't believe the rail loop will ever see the light of day.

"I don't think the state government has got $50 billion. I think it's a lot of pre-election talk in a bid to get them re-elected," Mr Fox told WILLIAMS MEDIA.

"There's an election coming up in two months and they always announce these big plans. Honestly, if it ever goes ahead I'll be staggered. It's an enormous amount of money and I can't see it ever going ahead. It's all just speculation before the election - I don't think there's any chance of it happening," Mr Fox continued.

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The Victorian Government has announced plans for an underground suburban rail loop. Image by Victorian Government.

The opposition has also slammed the announcement, calling it a plan "for the next generation".

“At the moment, the Andrews Labor Government can’t say how much it will cost, how it will be funded or when it will be finished. They have no business case, no engineers report and they won’t rule out more sky rail across Melbourne," the Liberal-Nationals said in a statement.

Mr Fox told WILLIAMS MEDIA that if the government is serious about addressing congestion and boosting house prices in the outer suburbs, the money would be better spent elsewhere.

"My view is that a high-speed rail between Melbourne and Sydney would be a better way to spend the money. Then you unlock the value of all those towns, like Albury, and Wodonga, and people can commute in and out of the city in under an hour. That would definitely boost the property prices along that corridor," Mr Fox said.

"People would then move back to the country which would be good for the economy and the country towns. People could commute into the city on a daily or weekly basis - that would be a better spend to alleviate the traffic and congestion in the city," Mr Fox added.

REIV President Richard Simpson says more people are considering buying in regional Victoria.

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Pictured: What your money can get you in Wodonga - from just $482,000 this four-bedroom, three-bathroom home could be yours. For sale through Joan Naldrett of Joan Naldrett Real Estate, as seen on Thehomepage.com.au

“Whether for reasons of housing price or a change in lifestyle, more prospective buyers are willing to look to regional Victoria to purchase. The possibilities of better transport connections with Melbourne now make that option even more palatable," Simpson told WILLIAMS MEDIA.

The median house price in Wodonga and Albury is $342,000, and $506,250 respectively, compared with $836,122 for the greater Melbourne area.

To find out more about the suburban rail loop, visit Victoria's Big Build.

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