Expert weighs in on what’s wrong with Docklands as City of Melb spruiks big plans on the horizon

After a series of failures, Docklands is a “ghost town becoming more ghostly” but can a raft of multimillion-dollar project promises finally fire it up?

A veteran retail consultant has warned Docklands is “a ghost town becoming more ghostly”, as shops and attractions fail to fire and both Melburnians and tourists largely shirk the precinct.

But is the $100m white elephant Melbourne Observation Wheel, that many identify with the area, a symbol for the languishing precinct as a whole? Or is Docklands on the cusp of revitalisation and poised to finally become the jewel in the city’s crown it was meant to be, with a raft of multimillion-dollar projects on the horizon?

To loosely borrow from the film Field of Dreams, “if you build it”, does it mean people will come?

The permanently closed Melbourne Star Wheel at Docklands. Picture: Ian Currie

Martin Ginnane – who specialises in revitalisation and activation of retail precincts – believes it’s possible, but an uphill battle from where Docklands finds itself now.

The precinct that was once so full of promise was a victim of its ad hoc development as parts of it were tendered out separately, he said.

“To me that never worked, it got off to a tricky start in terms of the vision for the entire precinct, it just wasn’t cohesive” he said, likening it to employing separate interior designers to remodel different rooms of a house.

The most successful new precincts in the world typically had a shared vision, he said.

Apartment buildings at Docklands owned by “churning” interstate and overseas investors and rented out as Airbnbs also meant the district just two kilometres west of Melbourne’s CBD lacked a sense of community, vibrancy, atmosphere and was “basically a ghost town” much of the time, Mr Ginnane said.

Many have described the precinct as soulless – without a beating heart.

The entrance to The District Docklands. Picture: Tia Clarkson-Pascoe

The precinct has been described as ghostly. Picture: Tia Clarkson-Pascoe

And now, with the flagged departure of one of the area’s biggest drawcards, its Costco store, Docklands could further fade, Mr Ginnane fears.

Insiders have blamed rising Melbourne City Council and state government costs for the cult store’s decision to move elsewhere – with reports Costco’s outgoings rose more than 500 per cent in 10 years.

If that was the case, it was an appalling state of affairs, Mr Ginnane said, adding he was involved in attracting Costco to Docklands when he worked with the government a decade ago.

It was sad to see “what was at least an anchor at one end of Docklands” disappear, he said.

However, Mr Ginnane said exciting initiatives he was aware of – but as yet unable to publicly share – could potentially breathe life back into the area.

A deserted Docklands seating area during the summer holidays. Picture: Tia Clarkson-Pascoe

And recently revealed AFL and state government plans to upgrade Marvel Stadium held hope, he said.

The government has commissioned renders from Grimshaw Architects of a possible new look for Marvel, including two high-rise towers and a new waterfront facade.

Acting Minister for Development Victoria Natalie Hutchins said the joint venture would unlock a major opportunity for housing, commercial use and entertainment at the sporting precinct.

The deal is separate to the $225m revamp for Marvel, announced four years ago by the state government.

Mr Ginnane is far from the only person to describe Docklands as a ghost town.

When the Herald Sun visited the precinct last week some shoppers and retailers labelled it the same.

But – despite the numerous vacant stores and spaces observed by the Herald Sun – others disagreed, saying the area was vibrant, enjoyable to visit, shop, work and live in.

For families, the Chaos Lab creative kids experience located there was a school holidays highlight.

And promotional signs plastered throughout the precinct gave them hope of exciting developments and events on the horizon.

Foot traffic over the Christmas and New Year period in Docklands also suggests other than a ghost town, with pedestrian activity near New Quay in December 2023 at its highest since monitoring began in 2019.

Despite foot traffic being better at Docklands now than anytime since 2019, the Herald Sun observed few people in many areas. Picture: Tia Clarkson-Pascoe

That, of course, may have something to do with the Covid lockdowns and restrictions in the years in between, that saw Docklands among the city’s worst affected suburbs.

Regardless, the City of Melbourne said in the next decade Docklands was set to get busier still, becoming home to more than 22,000 people, attracting 20 million visitors each year, and welcoming 50,000 city workers.

Projects including the $750m Goods Shed redevelopment – featuring mixed used development of two 41-storey towers over the historic Goods Shed site and including office, retail, food and drinks premises, an education centre and meeting area – was just one of them.

There was also the $187m Collins St development by Cox Architecture – that would see construction of a 24-storey residential building including 499 dwellings in a build-to-rent model – and a $150m Pearl River Rd development by architects SJB with a residential hotel, offices, beauty salon and wellness centre, function centre and bar, to come.

An artist’s impression of the planned Goods Shed redevelopment.

A render of the planned Pearl River Rd development.

A $2m development of public space at Collins Wharf by architects Openwork would create a new, informal outdoor recreation area on the northern side of Collins Wharf.

Meanwhile, events like the Now or Never arts trail, Firelight Festival and New Year’s Eve events attracted thousands to the area, the council said.

Melbourne Lord Mayor Sally Capp said Docklands was “a stunning waterfront precinct”, brimming with opportunities for activation and growth.

“The Victorian government’s redevelopment of Central Pier will play a key role in the future of the precinct – with the potential to create 3,800 jobs and generate more than $770 million for the local economy,” she said.

“A vibrant Central Pier will also complement plans to create a new housing, commercial and entertainment precinct near Marvel Stadium.

Nearly 500 new Collins St dwellings are planned in a build-to-rent model.

An artist impression of the Collins Wharf public space.

“We’re doing what counts in Docklands — with greening and infrastructure projects creating attractive new spaces to bring people together and supporting major events like Now or Never, Firelight Festival and New Year’s Eve. We’ve also established a new City Economy Advisory Committee, drawing on the expertise of business and industry representatives to help us find new ways to boost visitation and business.”

The Melbourne Observation Wheel spinning again would be hope on the horizon for Docklands. Picture: Ian Currie

For Victorian Chamber of Commerce and Industry chief executive Paul Guerra, the “iconic landmark” that is the Melbourne Observation Wheel is key to Docklands’ potential being realised.

Formerly known as the Melbourne Star, the giant wheel that towers over the precinct must spin again or (like Costco) move elsewhere, Mr Guerra said.

The $100m Docklands attraction — opened with much fanfare in 2008 — has become a Melbourne eyesore and national laughing stock since closing more than two years ago, with its future in limbo as liquidators haggle over a sale price.

Like much of Docklands itself, the wheel sits empty and lifeless.

“It (the Observation Wheel) was an important tourism offer for the Docklands area, and its revival would be a positive contribution to Melbourne’s cultural identity,’’ Mr Guerra said.

“It’s been idle long enough, and it’s a daily reminder we don’t need.”