Depending on what year you were born, your perception of Chapel Street's Jam Factory will be considerably varied. For those who're old enough to recall, around twenty years ago the shopping centre was once a thriving hub and popular gathering spot for locals. Since then, it's sadly become quite the ghost town, with only the longstanding cinema and a handful of chain stores left. It's disappointing to see a once beloved piece of Melbourne's history fall into neglect, but that's all about to change – The Jam Factory is officially getting a huge makeover to bring it back to life.
The $2.75 billion redevelopment will transform the space to hold high-end retailers, offices, a brand-new Village Cinema (which will be moved to the ground floor), a large wellness precinct, two hotels and ultra-luxe apartments (including very bougie $30 million penthouses). The centrepiece of the new site will be the Village Square, an expansive public piazza designed as a gathering place.
The facelift is being helmed by the Gurner Group (the same developer behind exclusive luxury health club Saint Haven and Elysium Fields, the high-rise complex dubbed as a futuristic wellness utopia) in partnership with Qualitas. It's been in the works for around ten years with very slow progress, but the new developers swooped in back in July 2024 to fast track the redevelopment.
Thankfully, the heritage brick facade of The Jam Factory will be preserved (including the original chimney) which will become the centre of a public square surrounded by new restaurants, cafés and bars. The historic building was originally constructed as a brewery in 1858, before becoming a jam and preserves company about 20 years later, until production ceased in 1950. In 1979, it became a shopping centre.
In its heyday, The Jam Factory was a buzzing hotspot, home to beloved retailers like Borders bookshop and a variety of quirky businesses. So hopefully, this makeover will inject some life back into the centre and reinvigorate the northern end of Chapel Street.
Initial demolition and construction has kicked off, and the first phase is set to include 250 luxury apartments and retail facilities. We'll be keeping an eye out for updates as this exciting development progresses.
Stay in the loop: sign up for our free Time Out Melbourne newsletter for the best of the city, straight to your inbox.