By Crystal Choo
When the Southgate centre opened on the banks of the Yarra in 1992, it was the central component of the Southbank redevelopment – a brainchild of the Cain government and a gateway to Melbourne’s new arts precinct. But rows of boarded-up shops and a string of high-profile departures has left the centre feeling abandoned, with plans to renew the precinct always on the verge but never on the way.
The Age visited Southgate on a rainy Wednesday during lunch hour. Along the centre’s first floor, a row of vacant shop lots was plastered with vague “coming soon” signs. Duct tape covered the outdated directory signs, and amenities were entirely closed on one side of the floor. A trip up the escalator revealed more boarded-up premises and a closed cafe. Function rooms capitalising on the riverfront views sat in silence.
An exodus of Southgate’s dining options has quietly taken place over the years. Former stalwarts Walter’s Wine Bar and Scusa Mi departed in 2013 and 2014 respectively. More recently, Miyako Japanese Cuisine and Teppanyaki closed its doors after 27 years of service in 2024, and its neighbour, family-owned restaurant Bluetrain, served its final meal in February of this year.
Half of Southgate’s first-floor shop lots sit empty behind boards. Credit: Wayne Taylor
The latest exit, Pure South Dining, ended its 21-year lease earlier this week, with owner Philip Kennedy telling The Age: “Southgate is falling apart. There are more empty spaces than occupied spaces in what used to be a fine-dining precinct.”
Opposite the empty lots, a handful of restaurants hold on. Red Emperor, Southgate’s longstanding Chinese restaurant, and contemporary Mexican offering Hacienda, which only opened last year, are among them.
Across from where Pure South Dining sits shuttered, the manager of bar and grill Waterfront, George Zampelis, says the restaurant is still “ticking along”.
The Zampelis family has been in the hospitality business for more than 100 years, 15 of those at their prime river-facing Southbank location.
Zampelis says that business has never recovered from COVID-19 lockdowns. This is despite data from City of Melbourne indicating that foot traffic has been consistently above even pre-pandemic levels.
“I think in general the whole of Melbourne probably seems a bit slower. I would say … we’ve been OK during the week. The weekends are still not too bad,” he said.
Commenting on Pure South’s closure, Zampelis said that the adjacent restaurant “never looked overly busy”.
The centre has struggled to reach its pre-pandemic levels of patronage, according to Waterfront manager George Zampelis. Credit: Wayne Taylor
“I’m not sure what happened next door, but it’s different for us,” he said.
Waterfront’s location on the edge of the river, says Zampelis, has effectively “removed” it from the woes of the centre.
“I think in terms of exposure and foot traffic it’s pretty good ... I also think it’s more if your offering’s good.”
While pedestrian activity has surpassed pre-pandemic numbers, council data suggests that in recent years foot traffic is on the decline. During the May to July period this year, pedestrian activity has been 9 per cent lower in Southbank when compared to the same period in 2024.
Plans to reinvigorate the Southbank precinct have been under discussion since 2020. Credit: Wayne Taylor
Plans to resuscitate the Southbank precinct have been in the works for years.
An ambitious $800 million revitalisation project was first submitted to the state government in 2020, with a $470 million redevelopment granted approval in December the following year.
The redevelopment was set to deliver spaces for new bars, restaurants and retail within a five-storey podium on the Southbank promenade, in addition to a 26-storey office building. The then planning minister, Richard Wynne, said at the time that the “new look” Southgate would “create a new destination for Melburnians and tourists”.
But despite approval being granted in 2021, by February 2023 the project had only reached “the initial design stages”.
The current $646 million Southgate redevelopment details the same plans to “rejuvenate and revitalise” the precinct, including “a revitalised food and dining retail offering”.
It’s slated for completion in June 2027. But Zampelis said that while he had heard “talks of renovations”, he wasn’t aware of any current work being done.
On the afternoon of The Age’s visit, the majority of Southgate customers were office workers looking for a quick bite. During the daytime, the downstairs food court seemed to be the only section of the centre with a pulse.
A business owner and tenant of the complex for five years said that the food court businesses relied heavily on these lunchtime office crowds.
“We now have to squeeze seven days of trade into five days of work,” said the owner, who asked not to be named for fear of reprisal from centre management.
Once a destination for fine dining, Southgate centre is now primarily frequented by people looking for a quick meal. Credit: Wayne Taylor
Around lunchtime, even a wet winter spell couldn’t dampen the flow of patrons. At 11am on Wednesday, the food court buzzed with schoolchildren on excursions, solo workers on breaks and group meet-ups huddled over coffees.
But once the centre entered the post-lunch slump, shop attendants had begun cleaning their displays and preparing for closing time. By 4pm, the food court offerings had largely shut their doors for the day.
ESR Australia, which manages Southgate on behalf of its owners Peninsula Investment Partners and Suntec Real Estate Investment Trust, was contacted for comment.
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