State government announces $350m upgrade for home of the Australian Grand Prix at Albert Park

An exciting new chapter is on the way for Australian Grand Prix’s home in Albert Park, with a $350m upgrade promising plenty for Formula 1 fans and competitors.

The state government will spend $350m in a major redevelopment at the Australian Grand Prix site at Albert Park.

The Sunday Herald Sun can today reveal the new look of the pit building, which will be the heart of the upgrade.

The design includes 14 new garages, a new VIP hospitality section, a state-of-the-art race control centre and media room.

The building will also be home to seven indoor sports courts, along with new clubrooms for local clubs to use year-round.

Tourism, Sport and Major Events Minister Steve Dimopoulosis is expected to unveil the new ­design on Sunday but has ­declined to confirm the $350m price tag, citing commercial in-confidence.

“Fans flock to Victoria from around the world for our ­Formula 1 grand prix – filling local hotels, restaurants, pubs and businesses – and we intend to keep it that way,” he said.

“This massive upgrade is a win for the local community – more space for community sport, more courts, better change rooms and park upgrades and a sporting venue Albert Park locals can enjoy.”

The upgrade will include more court, better change rooms and park upgrades.

A render of the Albert Park upgrade, including new pit building and, improvements to the surrounding precinct.

The new pit building will open for the 2028 race.

The new pit building will open for the 2028 Australia Grand Prix race with the current building set to be demolished after the 2026 race.

A temporary structure will be built to host the 2027 event, but it was not yet clear what that would include.

It’s understood the new building was part of long-term contracts with the grand prix operator and Mr Dimopoulos said the upgrade was warranted given the last Formula 1 event in 2025 attracted over 465,000 fans over four days.

This year’s event saw record crowds, mainly attributed to homegrown hero Oscar Piastri competing.

But he was left gutted in the dramatic ending to his Australian Grand Prix, dropping out of contention as McLaren star Lando Norris claimed victory ahead of Max Verstappen.

The race is considered also one of the most economically productive events for the city, with central Melbourne hotels reaching 94 per cent occupancy the night before.

The weekend is part of the state’s major events calendar that in total injects more than $3.3bn annually into the Victorian economy, contributing to a total $40bn in visitor spending in 2024.

The race has been locked in for Melbourne until 2037.

The community will be able to enjoy the facility outside of the race period.

It is expected to be completed by 2028.

Australian Grand Prix Corporation CEO Travis Auld said the new building was a big step forward for the event.

“In addition to playing a critical role in delivering a world-class event, this exciting new chapter will ensure this ­facility becomes an asset for the community to enjoy outside of the race period for years to come,” Mr Auld said.

Albert Park MP Nina Taylor said the facility would also provide top-notch options for locals to use.

“This project will make the iconic Albert Park precinct even better for locals with ­upgraded world-class sport facilities complementing the Melbourne Sports and Aquatic Centre down the road,” she said.

Originally published as State government announces $350m upgrade for home of the Australian Grand Prix at Albert Park