Proposed Rezoning Could Transform Williamstown's Southbank Precinct

Williamstown’s City Council has unveiled a proposal to rezone a stretch of land between Railway Parade and Macdonald Street, a move that could see the industrial edge of Southbank precinct turned into a new hub of apartments, retail and green space.

The rezoning plan comes as residents face mounting pressure from surging property prices and squeezed rental listings. With median house prices across Williamstown climbing past $1.1 million, according to Q1 2026 figures from the Victorian Valuer-General, city leaders say the area’s housing stock risks stagnating unless new options are put on the table-particularly close to transit and jobs.

Southbank’s Quiet Edge in the Spotlight

The rezoning would affect 11 hectares on the eastern side of the Williamstown Railway Station, running from the corner of Railway Parade and Hunt Street down to Morris Reserve. These blocks currently house a mix of older warehouses, vacant lots, and light industrial operations-many bordering the Williamstown Foreshore Trail. The council’s draft plan, published on July 4, would allow for six to eight-storey residential buildings, ground-level shops and small offices, and new links to the existing network of parks and walking trails. The Williamstown Community Co-op, which manages the adjacent botanic gardens, has flagged interest in working with future developers to expand open space and community gardens as part of any build.

Local business owners on Gellibrand Street are also watching closely. Southbank Deli and Station Books both operate within walking distance of the proposed rezoning area and face the possibility of a major influx of customers if the project moves forward. The Williamstown Resident Association has called for public consultation to ensure any development respects heritage overlays and traffic limitations, especially near the intersection of Power Street and Macdonald Street.

Data Shows Demand-and Risks

Recent figures provided by Hodson Real Estate show rental vacancy rates in Williamstown remained below 1.3% through May 2026, among the tightest in the region. Meanwhile, three new high-density applications lodged since March-on Ferguson Street and Picton Street-have each drawn more than 60 public submissions apiece. The newly proposed Southbank rezoning is projected to add up to 600 new dwellings over the next five years if approved under current density guidelines. The council aims to increase the number of affordable units by tying approval to a 10% affordable housing requirement, as detailed in its public summary released Friday.

The council’s next step is a round of community forums scheduled for July 15 at the Williamstown Town Hall and via online submission until August 9. City planners say a final recommendation will go to council in late September. In the meantime, residents and business owners can review the proposal in detail at the council’s planning office on Ferguson Street or download the documentation from the official council website. If adopted, the rezoning would become effective by the end of 2026, setting the stage for what could be the area’s most significant transformation in decades.

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.