Major $750m North Richmond Development Approved Near CBD

A 750-million-dollar residential and retail development has been approved for Victoria Street, North Richmond, unlocking one of the largest inner-city projects in Melbourne this year. The City of Yarra backed the plan late Thursday, clearing the way for a three-tower precinct on the former warehouse block between Nicholson and Church Streets, less than 3 km from the CBD.

Inner-City Growth As Housing Supply Squeezes

The approval comes as Melbourne’s inner suburbs grapple with record-low vacancy rates and buyer competition intensifies in the city-fringe apartment market. North Richmond’s rapid transformation—once largely industrial—is now a flashpoint for debates over density and housing supply close to major employment hubs. For many, proximity to Fitzroy’s cafes and North Melbourne’s parklands is driving fresh demand as prices across Greater Melbourne hover near $920,000 for houses and $620,000 for units (CoreLogic, June 2026).

The new precinct, to be delivered by Sterling Developments and designed by local architects Fieldwork, will include more than 700 dwellings above a fresh retail strip and landscaped public space. Plans show a network of laneways echoing nearby Gertrude and Smith Streets, and a new pedestrian plaza adjacent to North Richmond train station. More than 10% of apartments will be offered under the City of Yarra’s affordable housing scheme.

Sharp Uptick in Demand: Figures and Forecasts

Population migration into the inner north has spiked following the easing of pandemic-era restrictions, with ABS migration data showing over 6,500 new residents settling in Richmond and neighboring Abbotsford in the past 12 months alone. Unit rents in North Richmond have climbed more than 8% in the last year; the median weekly apartment rent now sits at $550, according to Domain’s June rental report. In-fill development like the Victoria Street project forms part of Planning Victoria’s strategy to accommodate an expected 130,000 extra Melburnians by 2031, the majority tipped to settle within 10 km of the city.

City planners told The Daily Melbourne the approval aims to balance urgent supply targets with the suburb’s heritage character. The design retains the historic red-brick façade fronting Victoria Street, while allowing for new ground-floor retail anchored by a major supermarket chain. The project will also contribute more than $12 million in public works upgrades, including bike lanes connecting to the Capital City Trail and landscaping over Gleadell Street car park.

What’s Next for Buyers and Locals

Construction is scheduled to break ground in November, with the first apartments due to reach market in early 2028 and sales campaigns expected to kick off by December this year. Prospective buyers are advised to monitor registration of interest programs and to check with the Sterling Developments’ sales team at their Bridge Road display suite. The development’s mix of one-, two- and three-bedroom units aims to attract both investors and first-home buyers looking for premium access to the CBD.

Residents and business owners around Victoria Street will see the first site fencing and demolition teams on the block within the next eight weeks. The City of Yarra continues to accept public feedback on the project’s affordable housing allocation and retail mix via its Local Voices platform until 30 July. Stakeholders watching the project say the North Richmond build could spark a new wave of high-density approvals across Melbourne’s city fringe in the coming 18 months.