Melbourne’s vertical expansion and the political economies of high-rise residential development

Abstract

This article advances understandings of Melbourne’s dramatic vertical expansion over the last decade by attending to the political economies of its high-rise housing development. Melbourne’s major high-rise development in the wake of the financial crisis represents a radical yet poorly understood departure from the city’s traditional patterns of suburban development. This article applies an existing conceptual framework for residential vertical urbanisation informed by heterodox political economy and critical geography. Drawing on secondary sources supplemented by supply-side stakeholder perspectives, the analysis shows how Melbourne’s high-rise development assisted in syphoning significant investor capital into the city. This not only expanded the local housing stock but, in the immediate aftermath of the financial crisis and later, amid ongoing economic uncertainty, Melbourne’s high-rise construction served both economic and geopolitical/symbolic functions in the city’s ongoing inter-urban competition for hyper mobile flows of capital and highly-skilled workers. Large apartment projects fuelled the Victorian economy and filled state coffers through property-related revenue. Meanwhile, the city’s dramatic vertical expansion helped project a powerful image of Melbourne around the world. Its crane-filled skyline heralded a thriving economy, and its new thicket of towers rendered a striking impression of urbane high-density living. Together these representations helped promote Melbourne as a vibrant, desirable place to live, work, and invest. Looking beyond the planning failures and planning politics identified in planners’ critiques of Melbourne’s vertical expansion, this article showcases the state’s considerable stakes in this development, and its role in smoothing the way for this expansion to occur.