A major urban renewal project in the heart of Melbourne has taken a significant step forward, with the Australian Government granting federal environmental approval for a $1.7 billion housing development next to the Queen Victoria Market. The project will deliver thousands of new homes while enhancing one of the city’s most historic precincts.

Led by Lendlease, the development includes two residential towers, a student accommodation tower and a low‑rise civic building overlooking the market. In total, more than 2,200 new homes will be delivered, comprising 1,100 apartments — including 130 designated as low‑cost housing — and 1,150 student rooms.

A key feature of the plan is the transformation of the existing asphalt car park into a 1.8‑hectare public park. The new green space will acknowledge the heritage of the Old Melbourne Cemetery while maintaining the character and cultural legacy of the market through conditions attached to the federal approval.

Minister for the Environment and Water, Senator Murray Watt, said the project delivers a careful balance between heritage protection and housing growth.

“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 redevelopment forms part of the government’s broader effort to address the national housing shortage.

“Housing is a life-defining challenge for so many Australians,” she said.

“We’re working hard to make housing easier, and these 2,250 new apartments in the heart of Melbourne will make a real impact.”

O’Neil noted that the federal government has increased housing investment to $43 billion in the past three years, compared with $5 billion over the previous decade. She emphasised the need to streamline regulatory processes to keep projects moving and ensure supply can meet growing demand.

With federal approvals now secured, the redevelopment is being positioned as one of Melbourne’s most important renewal initiatives — delivering sustainable housing growth while protecting the heritage and community value of the Queen Victoria Market precinct.

Source: Build Australia