Department of Environment, Land, Water and Planning
PART B: REGIONAL SUMMARIES AND DIRECTIONS
Melbourne Industrial and Commercial Land Use Plan 38 Department of Environment, Land, Water and Planning
Inner Metro Region
Regional snapshot The Central City is the city’s highest order centre and also supports key sporting, cultural, tourism and The Inner Metro Region comprises the municipalities leisure precincts and public institutions. The of Melbourne, Port Phillip and Yarra. The region economic strengths of the Central City are includes the Melbourne CBD and major urban supported by two national employment and renewal precincts including Docklands, Fishermans innovation clusters (NEICs). The first located at Bend, Arden, Macaulay, Dynon and the Flinders Parkville is focussed on health, education, research, Street Station to Richmond Station corridor. These professional and technical industries. The second is precincts will play a key role in the further evolution Fishermans Bend with a strong specialisation in of central Melbourne as a destination to live, work, innovation, design and manufacturing. These NEICs visit and invest. will provide for 21st century jobs adjacent to the CBD.
The areas from Richmond to Docklands through the The business service sector is the largest contributor Central City and Southbank, include the sporting to the economy for the region, with a total value- precincts of the Melbourne Cricket Ground and added estimate at around $72.8 billion. Melbourne Park, the Arts Precinct, Melbourne Manufacturing and industrial is the next largest Aquarium, museums and other key destinations for contributor with a total value-added estimate at local, interstate and international visitors. The region around $14.9 billion. Combined, these sectors is home to many sites of environmental significance account for around 78 per cent of the total value- including the Yarra and Maribyrnong Rivers and Port add for the region. Phillip Bay. The extensive open space areas in the region are integral to Melbourne’s liveability.
Fast facts People Jobs Economy
Population in 2006: Jobs in 2006: GRP for the region 242,603 492,950 $117b Population in 2016: Jobs in 2016: 347,617... 682,800... Share of metropolitan that's that's Melbourne’s total GRP: 39% 43% more jobs 35% more people
Melbourne ↑65,942 Melbourne ↑156,300 Melbourne = $90.5 billion Port Phillip ↑18,986 Port Phillip ↑8,700 Port Phillip = $13.6 billion Yarra ↑20,086 Yarra ↑24,850 Yarra = $13.1 billion
Source: Department of Environment, Land, Water and Planning, unpublished data (2019)
39 Melbourne Industrial and Commercial Land Use Plan Department of Environment, Land, Water and Planning
The region was home to around 347,600 people in 2016. By 2031 it is projected that the region will grow by 191,700 people to a total population of around 539,300. The municipality of Melbourne will experience the strongest population growth over this period.
In 2016 the region supported 682,800 jobs accounting for around 30 per cent of all employment in metropolitan Melbourne.
By 2031 it is projected that approximately 280,000 additional jobs will be located across the region. Approximately 70 per cent of new jobs in the region are expected to be within the municipality of Melbourne.
The industries that are expected to experience the strongest growth are: professional, scientific and technical services; health care and social assistance; financial and insurance services; public administration and safety; Education and training.
Figure 11: Projected population growth, Inner Metro Region, 2016 to 2031
No. of persons
300,000
250,000
200,000
150,000
100,000
50,000
0 Melbourne Port Phillip Yarra
2016 2031
Source: Department of Environment, Land, Water and Planning, Victoria in Future 2019 (July 2019).
Melbourne Industrial and Commercial Land Use Plan 40 Department of Environment, Land, Water and Planning
Figure 12: Projected employment growth, Inner Metro Region, 2016 to 2031
+195K Melbourne +43K Yarra jobs jobs Key industries Key industries Professional scientific and Health care and technical services, social assistance, Financial and Professional scientific and insurance services, technical services, Health care and Retail trade, social assistance, Accommodation and Public administration and safety, food services, Education and training. Education and training.
Jobs growth Jobs growth 0 0 2.5%pa 2.7%pa
+42K Port Phillip jobs Key industries Professional scientific and technical services, Health care and social assistance, Accommodation and food services, Financial and insurance services, Construction.
0 Jobs growth 2.8%pa Industry
Community Business Retail, accommodation, Construction Manufacturing and industrial Primary services services food and other
Source: Department of Jobs, Precincts and Regions, internal analysis (2019) NOTE: Job figures have been rounded to the nearest thousand.
Key industrial and commercial areas precinct to become internationally renowned as a centre of innovation in advanced manufacturing, The Central City incorporates the CBD (Hoddle grid, engineering and design, building on the presence of north to Grattan Street between Peel and Swanston the University of Melbourne at the former General Streets) as well as Docklands, Southbank and Motors Holden site and significant investment in St Kilda Road. It is home to the largest concentration public transport. It is anticipated that there will be up of jobs across the city and is metropolitan to 40,000 jobs in this precinct by 2050. The Melbourne’s principal centre for commerce, Framework also envisages significant opportunity professional, business and financial services. It for increased commercial floorspace and jobs in the will continue to be the key location for business mixed-use precincts, particularly in the Sandridge services offering a range of office, retail and tourism. precinct. These mixed-use precincts will transition Increasingly these areas are becoming locations for away from industrial uses and it is projected that housing. St Kilda Road is a significant mixed-use 40,000 jobs will be provided across the mixed-use and commercial area that transverses the City of precincts, potentially creating a total of 80,000 jobs Melbourne and City of Port Phillip. It comprises in Fishermans Bend by 2050. large concentrations of existing offices and accommodation and will be further enhanced The Parkville NEIC has a range of education, with the proposed Anzac Station as part of the research, health, professional and technical Melbourne Metro rail project. industries as well as significant parkland. It is an established, internationally renowned research Fishermans Bend NEIC has direct access to West centre, particularly in biomedical sciences, on the Gate Freeway and CityLink and is strategically doorstep of the CBD. It comprises a range of located, adjacent to the Port of Melbourne, the CBD institutions including the University of Melbourne, and Docklands. The employment precinct is Monash University (Faculty of Pharmacy and currently home to approximately 13,000 jobs. The Pharmaceutical Sciences), RMIT University, Royal Fishermans Bend Framework outlines a vision for the Melbourne Hospital, Doherty Institute, the Victorian
41 Melbourne Industrial and Commercial Land Use Plan Department of Environment, Land, Water and Planning
Comprehensive Cancer Centre, the Walter and Eliza The Gipps Street precinct in Collingwood is home to Hall Institute of Medical Research, the Florey Institute creative sectors such as architecture and design, and the Commonwealth Serum Laboratories. The software and interface design and visual arts. cluster has a high level of public transport access, Council strategies support commercial office with tram routes via Swanston and Elizabeth Streets. conversions, small office complexes, light industry Accessibility will be improved with the establishment and office warehouse developments in the area. of a new, state-of-the-art train station at Parkville as part of the Metro Tunnel project. The Cremorne precinct is strategically located adjacent to CityLink and Richmond Station and is Arden and Macaulay located in Kensington and emerging as one of Melbourne’s premier North Melbourne have been identified as major destinations for creative design, particularly tech urban renewal areas which have the potential to and digital design. It is an area that has experienced transition away from traditional industries to new a transition from manufacturing uses to more areas for knowledge-based employment, extending contemporary uses such as small creative industry from the Central City to the Parkville NEIC. The Arden firms as well as large web-based companies. It is area will be further enhanced by a new train station home to global companies as well as small to as part of the Metro Tunnel project. A number of sites medium sized firms, start-ups and co-working have been rezoned from industrial to mixed-use. spaces. The Victorian Planning Authority is currently Arden Central will provide an extension of the working with the City of Yarra to support Cremorne’s Parkville Biomedical Precinct, providing an estimated continued growth as a thriving enterprise precinct. 34,000 jobs and 15,000 residents (Arden Vision, July 2018). The area around Macaulay provides The South Melbourne Central Business Precinct in opportunity to create a mid-rise, mixed use the City of Port Phillip offers a mixture of service neighbourhood with sustainable transport, new open industries and showrooms, offices and warehouses. spaces and community facilities. This precinct is a long-standing key location for creative industries such as design, music, film and The Port of Melbourne is the largest international television as well as photography. The area enjoys a container terminal, automotive and general cargo premium location adjacent to the South Melbourne port in Australia. It operates 24 hours per day, 365 Major Activity Centre. It has close proximity to the days per year, and it handles around 36 per cent of CBD and Fishermans Bend as well as good access to Australia’s container trade. The port plays a vital role a skilled workforce and public transport services. in generating jobs and economic prosperity for Victoria and south-eastern Australia, with a total The Activity Centres network in the region is trade of more than $90 billion annually. Planning and anchored by the Central City and supported by 10 development for land uses within and near the port major activity centres and numerous smaller area needs to protect the viability of the port’s neighbourhood activity centres across the region. operation and Melbourne’s position as a leader in These activity centres are generally located on the freight and logistics. Principal Public Transport Network. They vary in size, role and function and offer different potential for West Melbourne and Dynon Road industrial area is growth. an industrial area located in West Melbourne. It accommodates a range of freight and industrial Victoria Gardens, a large free-standing shopping uses. Council’s strategy supports the ongoing centre, together with Victoria Street, offers a manufacturing, wholesale transport and distribution significant retail presence, serving a larger, sub- industries in the precinct. The precinct is located regional catchment. In other parts of the region, adjacent to the Port of Melbourne and has direct strip-based centres such as Balaclava, Carlton- access to the PFN. Lygon Street, Fitzroy-Brunswick Street, Bay Street Port Melbourne, Richmond-Bridge Road and Swan In the City of Yarra, there are a number of industrial Street, Clarendon Street South Melbourne and precincts in Abbotsford along the Yarra River. The Acland Street and Carlisle Street St Kilda offer a Carlton and United Breweries (CUB) site is an anchor range of retailing, office, restaurant, entertainment, use in this area and has been identified for ongoing tourism, accommodation and community uses. industrial and business needs. These precincts are identified by council to be retained for a range of employment uses including manufacturing, offices and urban services.
Melbourne Industrial and Commercial Land Use Plan 42 Department of Environment, Land, Water and Planning
Supply and demand for industrial and Between 2000-01 and 2017-18 a total of 326 hectares of industrial land was rezoned across the region for commercial land across the region non-industrial uses.
Industrial land The largest single loss of industrial land over this period was within the City of Port Phillip with There are 460 hectares of zoned industrial land approximately 216 hectares of land rezoned to within the Inner Metro Region. Most of this land is Capital City Zone within Fishermans Bend. Of the occupied with only 28 hectares of land being vacant. remaining industrial land rezonings over this period, The majority of vacant industrial land is located the vast majority (77 per cent) were sites of less than within the City of Melbourne, adjacent to the Port of 2 hectares in size. Melbourne in the Dynon Precinct. Of all the industrial land rezoned over the period, 87 Consumption figures provided here and in the UDP per cent was rezoned to allow for mixed-use or are for net activity. A negative figure indicates that residential development. This included the land at building demolition activity was greater than the Fishermans Bend rezoned to Capital City Zone. level of building construction activity (consumption). In locations such as the Inner Metro Region, most of While there is limited land available for industrial the land is occupied by an existing building and use. purposes across the region, growth in manufacturing In many instances, in order to develop land for new and industrial jobs will account for almost 4 per cent industrial use, the existing building needs to be of all new jobs over the period 2016 to 2031. demolished. Therefore, a negative consumption Therefore, opportunities will need to continue to be figure will be recorded until the site is redeveloped provided across the region to accommodate these for further industrial development activity. The types of jobs. former GMH site is an example of this where the building was demolished, however the site will be used for a new building or use at a point in time in the future.
Table 9: Industrial land supply, Inner Metro Region
Zoned occupied Total available Council Zoned vacant (ha) Future supply (ha) (ha) supply (ha)
Melbourne 310.0 25.5 0.0 25.5 Port Phillip 12.7 0.8 0.0 0.8 Yarra 136.7 1.7 0.0 1.7 Total 459.4 28.0 0.0 28.0
Source: Department of Environment, Land, Water and Planning, Urban Development Program – Melbourne Metropolitan Industrial 2018
Table 10: Industrial land consumption, Inner Metro Region, 2015-16 to 2017-18
Council 2015-16 (ha) 2016-17 (ha) 2017-18 (ha)
Melbourne -1.0 -0.3 -18.3 Port Phillip 0.0 -0.1 -0.7 Yarra -0.1 -0.3 -0.6 Total -1.1 -0.7 -19.6
Source: Department of Environment, Land, Water and Planning, Urban Development Program – Melbourne Metropolitan Industrial 2018
43 Melbourne Industrial and Commercial Land Use Plan Department of Environment, Land, Water and Planning
Figure 13: Change of zoned industrial land, Inner Metro Region, 2000-01 to 2017-18
Source: Department of Environment, Land, Water and Planning, 2018, Urban Development Program – Melbourne Metropolitan Industrial 2018
Commercial land centres account for approximately 89 per cent of all commercial floorspace supply in the region, and of Currently across the region there is a total of 1,158 this approximately 86 per cent is located within the hectares of land that has been identified as being City of Melbourne. zoned for commercial purposes. It is estimated that there is approximately 9 million square metres of Based on projected growth, it is anticipated that an floorspace used or available for commercial additional 4 million square metres of commercial purposes on this land. floorspace will be required across the Inner Metro Region by 2031. Approximately 3.3 million square Across the region, a total of 72 commercial areas or metres will be required for office uses and the centres have been identified. Of these, 35 have less remaining 700,000 square metres will be required for than 10,000 square metres of floorspace and 19 retail. Almost 71 per cent of this additional floorspace centres have between 10,000 and 49,999 square is anticipated to be located within the City of metres. Melbourne.
Thirteen commercial areas have more than 100,000 Options to accommodate projected demand for square metres of floorspace, including the key office commercial floorspace in the region need to be locations of Victoria Parade, Docklands, Southbank identified within existing commercial areas, as well and St Kilda Road (both in the City of Melbourne and as considering areas that could accommodate the City of Port Phillip) as well as retail areas such as future floorspace requirements through rezoning. Lygon Street, St Kilda and Smith Street. These
Melbourne Industrial and Commercial Land Use Plan 44 Department of Environment, Land, Water and Planning
Table 11: Existing commercial floorspace by centre size, Inner Metro Region
Less than 2,000 2,000 to 9,999 10,000 to 49,999 50,000 to 99,999 Greater than Council (m2) (m2) (m2) (m2) 100,000 (m2)
No. of Floor- No. of Floor- No. of Floor- No. of Floor- No. of Floor- centres space centres space centres space centres space centres space (m2) (m2) (m2) (m2) (m2) Melbourne 2 3,300 4 20,500 7 177,100 0 0 7 7,011,600 Port Phillip 4 3,050 10 50,300 5 125,700 1 52,700 3 689,700 Yarra 9 8,450 6 26,250 7 215,550 4 271,700 3 411,450 Total 15 14,800 20 97,050 19 518,350 5 324,400 13 8,112,750
Source: Department of Environment, Land, Water and Planning, unpublished data (2020)
Table 12: Commercial floorspace supply and estimate, Inner Metro Region
Existing commercial Estimated additional commercial Council Figure 14 floorspace 2018 (m2) floorspace 2016 to 2031 (m2)
Melbourne 7,212,500 2,841,000 Port Phillip 921,450 618,000 Yarra 933,400 548,000 Total 9,067,350 4,007,000
Source: Department of Environment, Land, Water and Planning, unpublished data (2020) *Existing commercial floorspace for the City of Melbourne has been based on their 2017 Census of Land Use and Employment Summary Report.
Figure 14: Estimated additional commercial floorspace by type and municipality, Inner Metro Region, 2016 to 2031
Square metres
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0 Melbourne Port Phillip Yarra
Office Retail
Source: Department of Environment, Land, Water and Planning, unpublished data (2020)
45 Melbourne Industrial and Commercial Land Use Plan Department of Environment, Land, Water and Planning
Planning framework for industrial and Planning for the region should: commercial land across the region • Retain land in the Fishermans Bend NEIC The Inner Metro Region contains the largest supply employment precinct, around the Port of of commercial land in the metropolitan area, Melbourne at Dynon and in Abbotsford however there is a relatively small amount of predominantly for industrial uses. industrial land. Even so, the region is home to industrial areas critical to the State’s economy and • Retain and support areas in and around ongoing prosperity. They provide employment and Collingwood, Cremorne and South Melbourne economic functions which are significant at state, to continue to develop as key locations creative regional and local levels. industry uses.
Industrial land has been decreasing across the • Investigate opportunities in areas such as region and commercial uses are being increasingly Arden Central and Domain to support other displaced by accommodation and other uses. This employment uses that are well connected to trend potentially has negative impacts for the adjacent employment uses, including the region’s economy and employment. Improved Parkville NEIC and the Central City. monitoring, oversight and protection of remaining industrial and commercial land is therefore required. • Identify precincts and opportunities where commercial development should be Significant opportunity exists at major urban prioritised and can be accommodated to renewal sites across the region to accommodate meet future needs. future growth of appropriate industries and businesses, however, there remain a number of challenges for the region in planning for industrial and commercial land.
Maintaining a supply of affordable and appropriately located industrial land for a range of industries, including creative industries and service industries, will be important to support businesses and residents in the region as well as the broader metropolitan area. A key challenge for such industries will be ensuring they are able to establish and operate effectively.
There is also a need to carefully balance planning for industrial and commercial areas with pressure for ongoing residential development. New residential or mixed-use development adjacent to industrial areas will need careful consideration, so as not to limit the ability of businesses to continue to operate. Consideration should be given to ways in which any potential conflicts can be mitigated or managed.
Melbourne Industrial and Commercial Land Use Plan 46 Department of Environment, Land, Water and Planning
MapMelbourne 4: Inner Metro Industrial Region - industrial and land Commercial Land Use Plan Map : Inner Metro Region Industrial Land
Parkville NEIC Dynon
South Dynon
Appleton West Park Swanston East Dock Swanston Dock Victoria Dock
Fishermans Bend NEIC
WEBB Dock
Northern Inner Eastern Western Inner South East Southern
0 2
Kilometres
Regionally Significant Industrial National Employment West Gate Tunnel National Park State Park Public Land - Existing Innovation luster Open Space Freeway Local Industrial Land - Existing Intermodal Freight Terminals Waterway Highway Principal Freight Network - Road Waterbody Arterial Principal Freight Network - Rail Plan Melbourne Region Rail Line Boundary Port of Melbourne Local Government Area Urban Area
Source:NOTE: The Department Principal Freight Network of reflectsEnvironment, the version published Land, in 2013 Water (Victoria the and Freight Planning State – the Victorian Freight and Logistics Plan, August 2013) in addition to Mordialloc Highway and West Gate Tunnel. East West Link has been removed. 47The DepartmentMelbourne of Transport are currently Industrial undertaking aand review ofCommercial the Principal Freight Network Land and will Use publish Plan an updated one later in 2020. Department of Environment, Land, Water and Planning
MapMelbourne 5: Inner Metro Industrial Region - commercial and Commercial land Land Use Plan Map : Inner Metro Region ommercial Land
Fit roy runswick Street Parkville NEIC arlton Lygon Street Fit roy Smith Street