Heritage Victoria knocked back a controversial two-tower development proposal on Docklands’ historic Goods Shed. The No.2 Goods Shed is currently listed on the Victorian Heritage Register as one of Victoria's oldest surviving railway goods buildings. This rejected $750 million project would have allowed two office towers flanking both sides of Collins Street. Heritage Victoria knocked back the application on January 5 on the basis that the development would have caused substantial visual and physical harm to the shed’s cultural and heritage significance.
As part of the redevelopment of Melbourne Docklands, the shed was originally cut in half with the construction of the Collins Street extension. The northern part of the shed was redeveloped by Places Victoria, with the construction of a tall black glass 'Lantern' building and refurbishment of the interior.
The southern half (known as The Goods Shed, 707 Collins Street) was developed by the Walker Corporation and has been restored and converted to offices. A further redevelopment would have overwhelmed and dominated the No.2 Goods Shed and obscure views to the north and south sections from Collins St.
While this decision was made predominately for the cultural and historical significance of Goods Shed, elsewhere in Australia has seen a similar slowing down in construction and building approvals due to continuous cash rate increase, the rising cost of materials/labour as well as the increased costs of compliance with the building code.
New data from the Australian Bureau of Statistics (ABS) has shown that 12,065 dwellings were approved in January 2023, the smallest number of approvals in over 10 years.
One can argue the decline can be interpreted differently in the long term and there are various drivers behind the scenes. There is no doubt that underlying details still suggest that building approval is well-entrenched in correction. With a lot happening in the economy locally and stateside, the next few months should prove crucial and provide clearer confirmation.
