Market Upgrade Paused After Government Rethinks Precinct

Developers working on the Preston Market redevelopment in Melbourne’s northern suburbs are preparing to scratch the project after the government's plans for the precinct were drastically reduced.

The Victorian government’s new Preston Central draft plan was released last week for the 5.1ha site between Preston train station and High Street.

The new plan slashes residential development across the site by 50 per cent, retail development by 25 per cent and office development by 15 per cent.

The original plan had allowed for 2200 apartments across 13 buildings in the centre of the precinct up to 20 storeys.

The Victorian Planning Authority said community feedback, which included up to 400 separate submissions, had led to the reduction in building heights and number of homes in the precinct. 

Planning minister Richard Wynne said the changes would ensure a “stronger precinct” which in turn would create more jobs and ensure more affordable housing.

“Planning for sustainable growth in the precinct while protecting the neighbourhood’s unique character is essential to tackle urban sprawl and housing affordability for Victoria’s growing population,” Wynne said.

“We’ve listened to the community and updated the draft plan in line with their feedback around neighbourhood character, open space and sunlight.” 

▲ The privately owned land is bounded by Murray Road, Cramer Street, High Street and St Georges Road.

The revised draft plan has been met with disapproval by the site’s joint owners, Salta Properties and Medich Corporation, who were preparing to invest upwards of $800 million into the precinct.

Salta Properties managing director Sam Tarascio said its $75-million redevelopment plans for Preston Market were “no longer viable” with many market tenants now considering leaving due to long-term uncertainty about the market’s future.

“The announcement from the government does nothing to give confidence to tenants that their interests are being appropriately considered,” Tarascio said.

“The [redeveloped market] would have connected the newly developed Preston Station to High Street and would have included more than 3500sq m of high-quality public open space accessible by the community and to those 3600 people who would call the precinct home.”

Under its plans, Salta Properties and Medich Corporation planned to reposition the market to front Cramer Street, at the southern end of the site, and retain the existing fruit and vegetable shed to protect local heritage.

The new plans were expected to add local heritage protections to retain the market’s character, while giving certainty to its future and improving layout and access.

Many of the 120 stalls were expected to relocate during the construction phase of the market, but would have continued to trade during other parts of the precinct’s construction.

The broader precinct will now include buildings of up to 14 storeys, with 11 apartment buildings planned alongside the market hall, stepping down in height from Murray Road to Cramer Street to maximise views across Preston City Oval.

Two further apartment buildings were planned across the rail line next to St George’s Road Reserve.

Medich Corporation managing director Anthony Medich said the decision to scale back the precinct to 1200 apartments was disconcerting given that Preston was facing transformational growth, with the population forecast to double in size to 68,000 people by 2041.

“We have continually demonstrated our willingness to work with the Victorian Planning Authority, state government departments and the minister on our privately owned site to create the greatest outcome for the local community,” Medich said. 

“That is why last week’s announcement is so disappointing for all concerned.”

The new draft plan will be now considered by the Projects Standing Advisory Committee and will be subject to further community consultation with any decision due to be handed down in July.

Construction for the broader Preston Central development is now unlikely to begin until at least 2024, subject to any permit applications which would also need to go through a consultation and approval process.