Construction of a major new housing development near Melbourne’s Queen Victoria Market is expected to begin next year after receiving federal government approval.
The project, called Gurrowa Place, will transform the precinct with thousands of new homes, including student accommodation and affordable housing.
The City of Melbourne originally proposed the development in 2023, planning three new buildings and hundreds of apartments. Environmental approval was granted on Thursday, with conditions designed to preserve the heritage features of the market. Minister for the Environment and Water, Murray Watt, stated that the project balances housing needs with heritage protection.
Melbourne Lord Mayor Nick Reece described Gurrowa Place as “the biggest mixed-use development project in council history,” noting it will attract thousands of residents, workers, and visitors, boosting local business.
The development, led by Lendlease, will provide homes for approximately 3,700 people. Plans include two residential towers, a student accommodation tower, and a low-rise civic building adjacent to the market. Restoration of the historic Franklin Street stores will support the broader renewal of the precinct.
Federal Housing Minister Clare O’Neil highlighted that the project will significantly improve housing accessibility in the city, with 130 apartments allocated for low-cost housing. However, some traders expressed concerns about changes to parking, fearing that underground car parks could deter customers from visiting the market.
Construction could begin next year, pending state government review of federal conditions. The project represents a major step in addressing Melbourne’s housing crisis while revitalising one of the city’s most iconic landmarks.
