The Medich family’s latest plan for Preston Market, a decade-long redevelopment saga, has been lodged with Victorian planning officials. The proposal calls for eight residential towers—ranging from eight to 16 stories—built above a podium of retail and parking, with 10% of the apartments designated as affordable housing. The scheme aims to preserve its heritage-listed space-frame roof and 81% of its existing footprint. Macroplan prepared the Preston Market Precinct Development Plan for the Medich family, whose company Preston Market Developments controls most of the 4.38 ha site beside Preston Station, roughly 8 km from Melbourne’s CBD.
Why This Plan Differs From Earlier Attempts
The new design retains more of the precinct’s structure than past proposals. The current plan expands floor space from 12,700 square metres to 15,328 square metres, adds 14,000 square metres of specialty retail, and includes two new parks, one near Murray Road and another adjacent to Preston Station. Demolition would begin with the south block and an adjacent Aldi supermarket, though the store’s future remains unclear.
The plan retains 77 per cent of the heritage-listed space-frame roof, which has been protected by a heritage overlay since 2023, and specifies a 2 700 sq m park on Murray Road plus a 1 000 sq m park beside the station.
Unlike previous versions, this proposal avoids a full shutdown by staging construction in five phases. Car parking would initially drop from 864 spaces to 605 before rising to 1,250 across the site, with 430 basement spaces reserved for residents. The planning report states that 600 spaces are the minimum required to keep the venue operational.
Aging Infrastructure Drives the Push for Change
The need for renewal stems from outdated power, water, drainage, and waste systems, according to the development plan. The Medich family, which took full ownership in August 2025 after Salta sold its 50% stake, argues that housing is the only viable way to fund the rebuild while ensuring the venue remains active for another 50 years.
Sam Tarascio, Salta’s managing director, previously told The Urban Developer that the planning process, originally expected to take six to nine months, dragged on for five years, driving costs beyond feasibility. “We say it’s not viable,” he said at the time. “And it was viable at the time that we started this process.” The site’s prime location beside Preston Station makes housing an essential component to finance the rebuild.
If approved, the plan would allow later permit applications to bypass public notice and third-party review, provided they align with the masterplan. Tower heights are preferred but not mandatory under the Activity Centre Zone, with the report acknowledging “slight variations” may occur. Consultation on the proposal closes on October 14.
Local Opposition and Government Support
Preston MP Nathan Lambert, who campaigned to save the precinct, has requested adjustments, including reducing the tallest tower from 16 to 14 stories and transferring the yield to other buildings. He also proposed adding a piazza-style civic space and ensuring a comparable share of affordable units are provided at a 30% discount to registered housing agencies. Lambert has not confirmed whether Aldi will return to the site.
Victoria’s Creative Industries Minister, Vicki Ward, acknowledged the venue’s importance to locals. “There’s been a lot of work, a lot of conversation around how the heritage, the actual market itself, can be preserved, as well as ensuring that we’re addressing the housing shortage that we know that we’ve got,” she said.
The plan still requires final approval from Victorian planning minister Sonya Kilkenny. Construction could not begin before 2030, according to Macroplan project manager Darren Rudd, who emphasized that the venue’s success is essential to the project’s viability. Rudd also told media the project “does not work if the market does not thrive.”