A new high-rises development is set to be built on the outskirts of Melbourne’s CBD.
The first phase of the proposed new tower at 3 King Street West will be completed by 2020.
A second phase will be finished by 2025.
The developer, KPMG, has said the new tower will “provide a major addition to the CBD and will provide affordable housing”.
It is part of a broader development plan which includes an existing shopping mall, a restaurant and a hotel.
The project will be funded by a $1.5 billion government-backed $1 billion concessional loan.
The city is still grappling with a shortage of housing in the CBD.
The CBD population is forecast to grow by about 2.6 per cent to 28.4 million by 2040, and the city has more than 2,000 new apartments for rent or lease.
In July the government announced the country’s biggest construction boom in the past 10 years with more than $1bn worth of new construction projects.
The council is now considering whether to use its $4 billion concessor loan for the project.
The Melbourne Council of Governments said the development was a “significant step forward” in terms of creating housing in Melbourne’s inner city.
“The redevelopment of 3 King St West will provide a significant addition to Melbourne’s urban fabric and a strong contribution to the revitalisation of the CBD,” the council said.
The KPM GmbH said it hoped the new towers would “create a strong connection between the CBD, the City of Melbourne and the surrounding community”.
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