Revamp for Melbourne’s Queen Victoria market

An artist’s impression of the planned Gurrowa Place development in Melbourne.

Melbourne’s Queen Victoria market is a step closer towards a $1.7bn revamp which will include apartment towers aimed at addressing the housing crisis.

The Victorian government has ticked off plans that will see developer Lendlease and the City of Melbourne get moving on a project including build-to-rent apartments, affordable housing and student accommodation.

The southern capital has seen a big decline in commercial property activity as investors shy away from high taxes and entrenched work-from-home practices. But authorities are hoping to spark more activity and Victorian Minister for Planning Sonya Kilkenny gave approval for a development plan and an early works permit, with the precinct expected to house thousands of people.

An artist’s impression of the $1.5 million Queen Victoria Market redevelopment proposed by Lendlease and the City of Melbourne. Picture: Supplied

“Building more quality homes around places like the iconic Queen Victoria Market means more Victorians can benefit from our thriving, liveable and vibrant capital city, with thousands of jobs nearby,” Ms Kilkenny said.

Housing will be a key feature of the development with plans for about 560 build-to-rent apartments, with 15 per cent dedicated to affordable housing, and student housing provider Scape to handle another 1100 beds.

New spaces and shops along the restored Franklin Street Stores and a community and cultural space fronting Queen St will be part of the project.

With a legacy dating back to 1878, Queen Victoria market is an iconic Melbourne landmark and stringent heritage controls will be imposed. The plan will see the 3.2ha southern site of the market precinct, bordered by Franklin, Queen and Peel streets, developed into a commercial, residential, retail, and public open space.

The project, known as Gurrowa Place, follows last week’s deal between Lendlease, Scape, and the City of Melbourne for the large-scale urban regeneration project which has an end development value of circa $1.7bn.

Artist’s impression of the planned Gurrowa Place development in Melbourne

Lendlease has also received planning permits for early works with construction expected to commence in the coming months, pending final approvals.

Gurrowa Place will consist of three buildings, with a 28-storey office block, the residential apartments and the student housing.

Lendlease will develop the commercial and build-to-rent towers, with Scape developing the student accommodation.

The project is expected to be completed in fiscal 2028.

Lendlease chief executive Tony Lombardo said the company had “commenced discussions with capital partners” interested in working alongside it on the Melbourne project.

“Achieving the milestones of contract close and development plan approval underscores the momentum right across our Australian business, as we replenish our local pipeline of development projects and repatriate capital from offshore,” he said.

Lendlease has been under-pressure to sell off long-dated offshore projects and bring partners into local deals when they are at an earlier stage.