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The funding will bring 13 new green spaces to life across the city – including pocket-sized neighbourhood parks and a huge new Market Square in the CBD

It’s been a big few months for Melbourne, with the Victorian capital claiming the title as the best city in the whole world at the start of March. Now, Melbs is doubling down on its rep as Australia’s Garden City, with the council earmarking more than $26 million for new and upgraded parks in its draft 2026–27 Budget.
The funding will accelerate the delivery of 13 green spaces, with projects ranging from pocket-sized parks and expanded reserves to a huge new city park. According to the council, the goal is to make sure nature is never far from where people live, work or visit.
According to the City of Melbourne, a $5 million investment will fast-track several neighbourhood projects, including the creation of a 2,500-square-metre pocket park on Chapman Street in North Melbourne. Work will also begin on expanding the Miles and Dodds Street Reserve in Southbank, while plans to grow the Normanby Road Reserve will continue to progress.
In Kensington, $6.4 million has been allocated to transform a warehouse on Chelmsford Street into a community space designed for exercise, play and connection with nature.
Several larger projects are also moving forward. Stage two of the $7.8 million upgrade to University Square in Carlton will ramp up, while $5.5 million will deliver more than 5,000 square metres of new open space along the City Road Undercroft.
The city’s biggest green addition is tied to the ongoing renewal of Queen Victoria Market. The draft budget lays the groundwork for Market Square, which is set to become Melbourne’s largest new inner-city park, alongside a greener, more pedestrian-friendly Franklin Street connecting State Library Station to the market.
Beyond the CBD, the next stages of the long-running Greenline Project will continue to reshape the north bank of the Yarra River, building on the success of Birrarung Marr’s recent upgrades. The Federal Government has contributed $4.4 million to help progress the transformation.
The council also plans to plant up to 3,000 new trees across the city, while working with community groups and private partners to expand urban greening efforts. Melbourne’s Lord Mayor Nick Reece said the investments reflect strong community demand for more greenery across the city.
“Melbourne matters – and we're leading the way as Australia’s Garden City, with 13 new and upgraded green spaces delivered at record speed and scale,” he said, explaining how the project is paving the way for “a bigger, busier and more vibrant city”.
According to the City of Melbourne, the council is already close to its goal of ensuring green space is within 300 metres of every home, with data showing that 92 per cent of residences currently meet that benchmark.
The draft Budget 2026–27 was released on Tuesday, March 31, with public consultation open until Tuesday, April 28. You can learn more over here.
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