The Australian government has granted federal environmental approval for a major new housing development set to transform Melbourne’s inner city, delivering thousands of new homes while revitalising the historic Queen Victoria Market precinct.
The $1.7 billion project, led by Lendlease, will see the construction of two residential towers, a student accommodation tower, and a low-rise civic building adjacent to the market.
In total, it will provide more than 2,200 new residences — including 1,100 apartments (with 130 designated as low-cost housing) and 1,150 student rooms.
As part of the development, the market’s current asphalt car park will be replaced with a 1.8-hectare park.
The new green space will recognise the heritage of the Old Melbourne Cemetery, while conditions attached to the approval aim to ensure the character and legacy of the market are preserved.
Minister for the Environment and Water, Senator Murray Watt, said the project strikes an important balance between protecting heritage and meeting Melbourne’s housing needs.
“Through thoughtful design, this project will provide new and much-needed housing while ensuring this Melbourne icon can be enjoyed for many years to come,” Minister Watt said.
“The market will continue to provide its famous fresh produce for Melbourne families and visitors, as it has done continuously since 1878.
“This project will offer modern facilities to make the market more accessible and appealing to traders, customers and tourists alike, without impacting the amount of parking on site.
“And the development will provide significant heritage benefits for the Queen Vic Markets by restoring the historic Franklin Street Stores.”
Minister for Housing, Clare O’Neil, said the announcement underscored the government’s determination to tackle Australia’s housing crisis.
“Housing is a life-defining challenge for so many Australians.
“People are working hard, doing everything right – and still can’t afford a place to call home.
“We’re working hard to make housing easier, and these 2,250 new apartments in the heart of Melbourne will make a real impact,” Minister O’Neil said.
O’Neil said the federal government has dramatically increased housing investment, directing $43 billion into the sector in just three years compared with $5 billion over the previous decade.
She explained that the federal government is working with industry and all levels of government to accelerate construction because lifting supply is the key to improving affordability.
O’Neil described the announcement as a strong step forward, but cautioned that excessive regulations are slowing projects and driving up costs.
She stressed that if Australia is to build the homes people need — which remains a central government priority — then those barriers will need to be removed.
With approvals now secured, the Queen Victoria Market project is being hailed as one of Melbourne’s most significant urban renewal initiatives, promising to deliver sustainable housing growth alongside the protection of one of the city’s most cherished landmarks.
