New report claims $268m Queen Vic Market upgrade will give $1b boost to Melbourne economy

After being devastated by the effects of Covid, a $268m plan to spruce up Queen Victoria Market is set to deliver a huge economic boost.

A new report says the Queen Victoria Market redevelopment will bring a $1b economic boost to Melbourne. Picture: City of Melbourne

Redevelopment of Queen Victoria Market will give Melbourne a $1bn economic boost and create nearly 15,000 jobs, says a new report.

Consultants SGS Economics and Planning estimate that by 2051, the city icon will attract 18 million visitors annually after being devastated by Covid effects over the past two years.

Since 2013, only a third of the $268m project cost has been spent amid several delays including Heritage Victoria’s rejection of the original master plan.

The most recent issue involves delays of up to eight weeks to restore heritage sheds due to pandemic-related construction shutdowns.

Commissioned by the City of Melbourne, the SGS business case analysis predicted that for every dollar invested in the project, $4.13 will flow back to the local economy.

This would mean a nearly $1bn economic boost for the city, 15,000 new jobs and a return to profitability for the market from 2025, with profits reaching $5m by 2030 and $10m by 2050.

Lord Mayor Sally Capp said the independent report confirmed the council’s investment would protect and enhance the market for years to come.

“Traders will find improved sheds and facilities to make their businesses more viable and, customers will find it even more welcoming to visit, to dine and shop for all the exceptional fresh produce and specialty goods our market is known for,” she said.

“We know the market experience means so much to Melbourne – whether it is a longstanding weekly coffee date, a place to find those special ingredients, or a family business that has passed through generations.”

Market chief executive Stan Liacos stressed the renewal program was crucial for the market’s recovery and revitalisation.

“(It) will allow us to retain the heritage, traditions and authenticity of Queen Victoria

Market, while making it more efficient for our 600 small business owners, and more attractive for people to visit, shop and enjoy,” he said.

The redevelopment will include a 1.75ha plaza on the site of the main carpark, while a 500-space underground carpark is already open at the nearby Munro site.

Work will start next year on the new trader and northern sheds, and upgrade of the food court.

The market precinct will host nearly 10,000 dwellings by 2050.

Activist group Friends of Queen Victoria Market has been scathing of the plan, claiming that replacing the main carpark with a green space will drive customers away due to parking issues.