Roads Minister Luke Donnellan has gazetted laws taking the land underneath 260 properties – including more than 100 homes – without any offer of compensation. They wreck my house, they pay, don’t you worry about that. The tunnels beneath homes will be about 15 metres underground, but as shallow as 5 metres beneath the soil under non-residential buildings. Land titles created prior to 1891 went to the centre of the earth, while those issued after that year went to only 50 feet - or around 15 metres. Letters to homeowners sent two weeks ago, telling them the land beneath their feet was now owned by the government, also said they may entitled to compensation if they could show a financial loss from seizure of the “sub-stratum” land.

Lawyers representing affected Yarraville owners said the acquisition could reduce property prices. But the government has told residents their properties would likely not lose value. “Melbourne now has a significant number of properties above the City Loop, CityLink and EastLink tunnels,” said correspondence to residents sent by Peter Sammut, chief executive of the authority overseeing the project. Loading Replay Replay video Play video Play video “The Valuer-General Victoria has found there is generally little difference in the values of properties above tunnels compared to others in the same area,” the letter said.

The West Gate Tunnel will link the West Gate Freeway to CityLink, via a tollway under Yarraville, and is expected to ease congestion in the western suburbs. The roads minister pledged on Wednesday that in the "highly unlikely" event any home was damaged by construction of the tunnels it would be repaired by the government. The Yarraville land has been acquired using the Major Transport Projects Facilitation Act, introduced by Labor in 2009. The Napthine government planned to use its powers to build the East West Link, but lost power before it enacted them. Yarraville homeowners and businesses have two years to seek compensation.

Manisha Blencowe, of Slater and Gordon, said they were not aware of any claim for compensation for the loss of land below a title since the 2009 powers came into place. “For people who have now lost the right to their land under their property, many are going to feel like they have lost value in their property,” said Ms Blencowe. “The government is essentially discouraging people from exploring their right to seek compensation." The Western Distributor Authority is managing the project for the government and Transurban.

Spokeswoman Kim Payne said in most instances the acquisition of land below houses and businesses was at a depth starting at 15 metres. “Property owners above the [tunnel] will continue to use their land as they do now,” she said. The acquisition "won't stop a property owner from building a pool, cellar or basement,” she said. And she said when the new toll road opened, thousands of trucks that now used the inner west's residential streets could take a different route. This was “very positive for property owners in the area”, she said. Yarraville resident Francesca Maiorano, 62, is among 19 owners in Frederick Street to have land under their house acquired.

From the moment she found a leaflet notifying her of a tunnel being built 15 metres underneath her home she has felt uneasy. "I'm really nervous because you just don't know what it means," she said. "I've lived in this house four decades, I've seen a lot of changes in that time. My house is 100 years old, but will she live to see another 100 years if they are going to build a tunnel underneath her?" Ms Maiorano said she hadn't considered compensation yet, but if her house was damaged by the development she would. "My biggest concern is that my house is going to sink," she said. Yarraville resident Andrea, who asked that her surname not be used, is among 19 owners in Frederick Street to have land under their house acquired.

Andrea said her family was concerned at the impacts of the tunnels' construction, and later having traffic running beneath the property. “It’s a bit of a great unknown – maybe in five years’ time I will wonder what all the fuss is about,” she said. “When we go to sell one day, is our house going to be identical to one that was three streets away without a tunnel? If I was comparing, I’d be hesitant to buy ours." Gray Street resident George, 74, says he is “bloody furious” about the impact the development could have on his weatherboard home. George, who also asked that his surname not be used, said he had consulted a lawyer about the threat the development could pose.

“They wreck my house, they pay, don’t you worry about that.” But his neighbour, Mustafa Hasanoglu, was not as fussed. “Whatever happens, happens,” he said. “I have lived in my home 40 years and it hasn’t collapsed yet. The traffic is so bad in the area, I think they need to do something to fix it."