Gurrowa Place gets federal green light at Queen Victoria Market

The $1.7 billion Gurrowa Place redevelopment at Queen Victoria Market has cleared its final regulatory hurdle, with the Australian Government granting federal environmental approval for the project this morning.

The decision ends months of uncertainty over whether the plans, already approved at state and local levels, would meet national heritage protections under the Environment Protection and Biodiversity Conservation Act.

Lord Mayor Nick Reece welcomed the outcome, saying the ruling confirmed the development would not impact the heritage values of Melbourne’s most famous market.

“We welcome the Australian Government’s decision that the Gurrowa Place development does not impact the heritage of our prized Queen Victoria Market,” Cr Reece said.

“Lendlease and the City of Melbourne can now confidently move forward with ground breaking plans to transform the precinct – attracting thousands of new residents, workers and visitors, while boosting business for traders.

“This development will also make a major dent in the housing crisis – delivering new homes, including affordable housing which the city desperately needs.”

The approval unlocks the delivery of more than 2200 new residences, including 1100 apartments – 130 of them at low cost – and 1150 student accommodation rooms. Located on the market’s 3.2-hectare southern site, bordered by Franklin, Queen and Peel streets, the project also includes two residential towers, a student tower and a low-rise civic building.

A 1.8-hectare public park, to be known as Market Square, will replace the existing open-air car park, creating the largest addition of green space to the central city in decades. A 220-space basement car park will be built for market customers and traders.

Heritage benefits form part of the approval conditions, including the restoration of the historic Franklin Street Stores into a retail village.

Federal Environment and Water Minister Murray Watt said the project had been designed to respect the market’s heritage while meeting critical housing needs. “Through thoughtful design, this project will provide new and much-needed housing while ensuring this Melbourne icon can be enjoyed for many years to come,” Minister Watt said.

Minister for Housing Clare O’Neil said the Albanese Government was determined to accelerate housing supply.

“These 2250 new apartments in the heart of Melbourne will make a real impact,” she said. “We’re working with industry and all levels of government to build, build, build because more housing means more affordable housing for all Australians.”

Lendlease’s executive director of development, Adam Williams, said Gurrowa Place would be “one of the most exciting urban regeneration opportunities in Melbourne” and a vital part of securing the market’s future.

While the approval clears the way for works to begin next year, the project remains polarising. Supporters see it as an overdue investment in housing, public space and market renewal, while critics – including some traders and heritage advocates – remain concerned about its impact on the market’s traditional function.

The City of Melbourne will provide a progress update to the community in early 2026. For now, with federal heritage approval in hand, Gurrowa Place is set to reshape the market’s southern edge – blending new housing, restored heritage and green space in one of the most significant developments in the council’s history.