Trio of high-rise towers for $1.7 billion Queen Victoria Market redevelopment

Three high-rise towers will be built in the Queen Victoria Market precinct and the open-air carpark transformed into a public square as part of a $1.7 billion skyline-shaping project by developer Lendlease and Melbourne city council.

The project will include a 49-level tower for student accommodation, a 46-level residential apartment block and a 28-level office building on the so-called “southern site” bounded by Franklin, Queen and Peel streets. The council hopes it will bring new shoppers to the beloved but tired market.

An artist’s impression of Gurrowa Place.

Construction of the new precinct – to be known as Gurrowa Place – is slated to begin early next year and be completed in 2028, subject to planning and heritage approvals.

Fifteen per cent of the residential tower will be earmarked for affordable housing, despite the council originally touting that the mixed-use development would deliver “up to 25 per cent affordable housing” when it announced in 2021 it was selling the site to the private sector.

The remaining 476 apartments in the residential tower will be build-to-rent, a housing model in which apartment blocks are owned and operated by a single company acting as a landlord rather than being sold to investors.

The tallest tower will be dedicated to student accommodation, with an 1100-bed building to be developed by Scape, a student housing provider.

An artist’s impression of the three new towers in the market precinct.

In 2014, the state government agreed to gift the 3.2 hectare site to the council so that it could be sold to the private sector to help fund the renewal of Queen Victoria Market.

As part of the partnership, Lendlease will develop the public square, restore the heritage-listed Franklin Street stores into a new “retail village”, build a basement carpark and create a civic pavilion, to be known as the Queen’s Corner building. These will be owned and managed by the City of Melbourne.

The council says the new 1.8 hectare Market Square – which was first proposed in 2019 – would unlock one of the largest open spaces in the CBD. But some market goers and traders argue that the loss of the open-air carpark would destroy the market.

The council insists there will be no loss of parking. It says an underground carpark will be built in the precinct with 220 car spaces for market customers and an extra 80 car spaces under the office building available to the public on weekends.

The Queen Victoria Market car park.Credit: Joe Armao

A further 500 carparks for market customers are already available in the Munro building on the corner of Queen and Therry streets.

But Friends of Queen Victoria Market president Mary-Lou Howie said the open-air car park was more convenient for customers and vital to the viability of the market. “They want to pedestrianise the whole market – this is not going to work. They want to convert it into a hospitality and events space.”

The redevelopment of the market precinct, which has been dogged by controversy, also includes the restoration of the market’s historic sheds, new facilities for traders, a food court and a library and community hub.

An artist’s impression of Gurrowa Place.

Lord Mayor Sally Capp said Gurrowa Place would attract thousands of new residents, workers and visitors.

“Traders will benefit from more customers and activity, with every dollar of this sale reinvested into the preservation and renewal of the precinct,” she said.

“We’re proud to partner with Lendlease to deliver 15 per cent affordable housing. This is the largest commitment of affordable housing by the council – and one of the biggest provisions by the public and private sectors in a mixed-use development.”

Lendlease managing director of development Tom Mackellar said the creation of Gurrowa Place was the beginning of the next chapter in the 140-year evolution of Queen Victoria Market.

“Landlease looks forward to working alongside the City of Melbourne, Scape and all project partners to deliver a reimagined precinct that preserves the heart and soul of this Melbourne landmark while ensuring it continues to thrive,” Mackellar said.

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