The City of Melbourne’s long-planned redevelopment of the Southern Precinct at Queen Victoria Market has received final approval from the federal government, moving the $1.8 billion project a step closer to construction.
Dubbed Gurrowa Place, the project — first agreed upon in 2014 between the federal and Victorian governments — will see three new towers rise over the market, a 1.8-hectare public square replace the current open-air car park, and the car park relocated underground.
The federal environmental approval, announced Thursday, comes with strict design conditions due to the market’s heritage listing. Environment and Water Minister Murray Watt said careful planning would “deliver much-needed housing while ensuring this iconic Melbourne site can be enjoyed for generations to come.”
Melbourne Lord Mayor Nick Reece hailed the project as “the largest mixed-use development in the city’s history,” saying it followed nearly a decade of planning reviews. “Lendlease and the City can now proceed confidently with a project that will attract thousands of new residents, workers, and visitors while boosting local businesses,” he said, adding that the development will help ease the housing crisis with new homes, including affordable units.
Housing and public space upgrades
The redevelopment is expected to accommodate around 3,700 residents and will include two residential towers, a student housing building, and a public services hub adjacent to the market. Historical Franklin Street shops will be restored as part of the works.
Federal Housing Minister Clare O’Neil said the addition of new apartments and student accommodation would “make a real difference” to housing accessibility in the city. Of the new residences, 130 apartments will be reserved for affordable rental.
The Market Square park will replace the current car park, while underground parking will be introduced. Lendlease’s Tom Mackellar said the revitalisation of Franklin Street shops will enhance the broader market renewal program.
Traders voice concerns
Not all are convinced. Frank Fontana, a third-generation trader, said the loss of the adjacent open-air parking would hurt business, arguing the underground facility will deter shoppers. “If you want to go ahead with development, go ahead — but leave us the parking,” he told the ABC. “Don’t ask customers to walk an extra 300 or 400 metres with their shopping and take a lift down.”
State and city authorities will review the federal design amendments before work begins, with construction targeted to start next year.
