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ZOTPAPER
Melbourne

‘More seagulls than people’: Melbourne’s City Square remains a ghost town nine months after reopening

Vacant retail outlets and sparse visitors raise questions about the square’s revival following an eight-year closure for Metro Tunnel works

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By LineZotpaper
Published
Read Time2 min
Sources2 outlets
Nine months after its much-anticipated reopening, Melbourne’s City Square remains largely deserted, with vacant retail outlets, boarded-up windows and temporary fencing a stark contrast to the city’s hopes for a vibrant civic space. A couple eating lunch and children chasing seagulls on the grey pavers were the only signs of life during a recent visit.

The square, directly opposite the Town Hall, reopened in early 2026 after being closed for eight years while the Metro Tunnel was built. Despite a significant redevelopment — often described as a “glow-up” — the hospitality and retail spaces beneath the adjacent Westin Hotel are still vacant and cordoned off. A “Retail For Lease” sign advertises the premises as “flagship opportunities” with exceptional ground floor options.

City Square now features a large canopy with a white slatted roof over the entrance to the new Town Hall Station, 12,000 grey pavers in the centre, and metal bench seating along the sides. Yet the promised revival has not materialised, with the square described as having “more seagulls than people”.

No official explanation has been provided for the slow uptake of the retail spaces, and no timeline has been given for when they might be filled. The square remains open to the public, but its current emptiness contrasts sharply with the bustling crowds the redevelopment was meant to attract.

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Analysis

Why This Matters

  • The empty square raises concerns about the effectiveness of major public space investments tied to infrastructure projects.
  • Vacant retail spaces suggest a mismatch between the design of the square and what tenants or visitors actually want.
  • The slow activation of City Square could affect perceptions of Melbourne’s city centre recovery post-Metro Tunnel.

Background

City Square is a key public space in Melbourne’s CBD, located opposite the historic Town Hall. It was closed for approximately eight years during the construction of the Metro Tunnel, a major rail project that included a new Town Hall Station. The square reopened to the public in January 2026 with a redesigned layout intended to create a more inviting, pedestrian-friendly space. The redevelopment included a large canopy, new paving and seating, and direct access to the station. The ground-floor retail and hospitality tenancies underneath the Westin Hotel were meant to activate the square throughout the day and evening.

Key Perspectives

Local residents and workers: The lack of foot traffic and empty shops makes the square feel unwelcoming and underused, reducing its appeal as a lunch spot or meeting place. Retail and hospitality industry: High rents, changing commuter patterns and lingering effects of remote work may be discouraging tenants from committing to the location. Melbourne City Council and state government: The square is intended as a gateway to the new station, and its slow activation may reflect broader challenges in attracting businesses back to city centres.

What to Watch

  • Whether any new tenants are announced for the vacant retail spaces in the coming months.
  • Changes in pedestrian counts as more commuters use the new Town Hall Station.
  • Any council or government incentives to encourage businesses to occupy the square.

Sources

newspaper

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Articles published under the Zotpaper byline are synthesized from multiple source publications by our AI editor and reviewed by our editorial process. Each story combines reporting from credible outlets to give readers a balanced, comprehensive view.

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