Major Development Approval Granted for Landmark Project Near Templestowe CBD

A landmark mixed-use development just secured final approval from the Templestowe City Council, paving the way for construction to begin later this year on a sprawling site metres from the city’s Civic Square. The $320 million project, to be built on the corner of Anderson Street and Macedon Road, will see three residential towers rise over a new retail podium, injecting more than 400 apartments and a clutch of new shops and cafes into the heart of Templestowe.

The decision comes at a moment when the city’s central neighbourhoods are grappling with increased population pressures and low vacancy rates. Council documents show Templestowe’s core residential vacancy rate stood at just 1.9% in May, well below what most analysts consider healthy for renters and home buyers. With families priced out of Villa Street and downsizers seeking lifestyle amenities near Westfield Templestowe, city officials say the new apartments and public open spaces aim to meet pent-up demand for housing and activate what has been an underused block for years.

Transforming a Key Inner Neighbourhood

The approved development, known locally as "The Lanes," will neighbour the Templestowe Community Library and overlook the leafy Civic Reserve. Under draft planning documents, the project will offer ground-floor commercial spaces-suitable for a supermarket, small-format stores, and health services-plus a 1,200 sqm landscaped plaza connecting to the existing Anderson Street bicycle paths. The site sits just two blocks from the Templestowe Performing Arts Centre, reinforcing what business chamber leaders describe as a new urban focal point for culture and commerce.

Templestowe Council’s online planning register indicates that more than 130 public submissions were filed, with the strongest support from the Templestowe Business Collective, citing long-standing calls for after-dark activity near Macedon Road. Locals familiar with the site-the former location of the Templestowe Post Distribution Centre-recall it as a "dead corner" after business hours, particularly since the closure of the Lucky Lotus restaurant in 2021.

Data and Next Steps

According to independent analysis commissioned by the City of Templestowe, median apartment sale prices in the Civic Square precinct climbed to $698,000 in the first quarter of 2026, up 8.4% over the past year, outpacing the wider city region. The new project’s estimated 410 apartments-ranging from studios to three-bedroom units-are expected to broaden the entry points for buyers and renters alike. The plans also require at least 15% of units be designated as affordable housing, per the Council’s 2022 inclusionary zoning policy.

With approval now granted, developer Moncrief Urban is expected to begin site preparation by October. Existing roads and pedestrian routes-especially along Wilson Lane and Anderson Street-will be subject to minor detours during piling and excavation, according to letters sent to residents last week. The Council has committed to regular construction updates via the Templestowe Planning Alerts newsletter and a dedicated web portal. Locals looking to track progress or obtain details about off-market sales launches can find updates on the Council and developer websites starting later this month.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.