Arden tower backed, but only with major changes

One of the first major development proposals to emerge in Arden since the opening of the new Metro Tunnel station has received cautious backing from City of Melbourne councillors, but only if the Minister for Planning imposes significant changes.

At their July 7 Future Melbourne Committee meeting, councillors voted unanimously to advise the state government that they did not object to a 27-storey build-to-rent tower at 53–65 Munster Terrace, North Melbourne, subject to conditions addressing height, affordable housing, apartment mix, internal amenity and sustainability.

The $110 million proposal, by Novus Investco with Contour Consultants and Rothelowman Architects, would deliver 250 build-to-rent apartments, ground-floor food and drink premises and community space on a site around 100 metres from the new Arden Station on Laurens St.

The application is being assessed by the Minister for Planning under the state’s Development Facilitation Program because it includes an affordable housing component. This means the City of Melbourne is not the decision-maker and has no appeal rights, but was asked to provide advice.

Council officers supported the proposal in principle, noting that 250 new homes in such a well-connected location aligned with the Arden Structure Plan’s vision for significant residential growth. However, they said several key issues needed to be resolved before any permit was issued.

The most significant condition is a reduction in height by at least three storeys, or 9.45 metres, to ensure the tower does not create additional overshadowing of the future Arden Central Neighbourhood Open Space.

The proposal reaches 90 .73 metres, exceeding the discretionary 64-metre height limit under the planning controls by more than 26 metres. While it complies with mandatory winter shadow controls, council officers said the additional height would cast about 40 square metres of extra shadow on the future open space at 9am on the September equinox.

Deputy Lord Mayor Roshena Campbell said the application was a major early test for the precinct.

“This is one of the first development proposals for the Arden precinct that is coming before this committee since the implementation of the Arden Structure Plan,” she said.

“This is an incredibly significant planning decision for this council.”

Cr Campbell said the site was clearly suitable for new housing, but warned that growth had to be matched with good design, genuine affordable housing and liveability.

The council also wants the affordable housing offer strengthened. The applicant has proposed 10 per cent of dwellings at a minimum 25.1 per cent discount to market rent for 15 years, plus a $500,000 contribution to the Victorian Social Housing Growth Fund.

Officers recommended this be increased to at least a 30 per cent discount for a minimum of 20 years, arguing the current offer was unlikely to deliver genuinely affordable rents for low- to moderate-income households.

Contour Consultants associate Konrad Braun, speaking on behalf of Novus, said the applicant did not support that condition, arguing the proposal already exceeded the threshold required to enter the Development Facilitation Program.

He also said the applicant opposed the recommended three-storey height reduction, warning it would make the project difficult to deliver.

“We’re advised that the reduction in height will make the project difficult to deliver and accordingly we request that the proposal be supported in its current form,” Mr Braun said.

The applicant also opposed conditions seeking greater dwelling diversity and full compliance with private open space and storage standards, arguing the building would include substantial communal amenities.

The current apartment mix includes 61 studios, 92 one-bedroom, 92 two-bedroom and just five three-bedroom apartments. Council officers said the development should reduce its reliance on studios and include more larger homes to support a broader range of households.

Cr Campbell said it was concerning that one of the precinct’s first major residential projects included only five three-bedroom dwellings.

“We want to see a mixture of housing types,” she said.

The Munster Terrace proposal was not the only Arden development before councillors on July 7, with a separate and much larger high-rise proposal for Arden St also considered and not supported.

Together, the applications point to mounting development pressure around the new station precinct at a time when major questions remain over how Arden’s promised infrastructure will be delivered.

Development Victoria has recently narrowed the field of potential master developers for Arden Central from four bidders to two, with a decision expected this year. The precinct is intended to become the mixed-use heart of Arden, but residents continue to question whether schools, open space, drainage and other public infrastructure will keep pace with growth.

The state government previously announced plans for two new hospitals in Arden in 2022, but later scrapped the proposal due to concerns about electromagnetic interference from the Metro Tunnel.

More recently, the government has said it is working to secure a site for a proposed secondary school in Arden, but no location or delivery timeline has been confirmed. Drainage also remains one of the precinct’s biggest technical barriers, with major upgrades required before large parts of Arden can be built out.

Cr Andrew Rowse declared a general conflict of interest due to a social connection with a property owner in the vicinity who may be affected by the Munster Terrace proposal and left the chamber before councillors considered and voted on the item. Cr Rafael Camillo and Cr Owen Guest were both absent.

The final decision now rests with the Minister for Planning. •