One of Melbourne’s most iconic sites is getting a game-changing makeover. The Jam Factory – a Chapel Street icon for generations – is stepping into the future with a visionary redevelopment that promises to reshape the heart of South Yarra. This week, the City of Stonnington approved the latest updates to Stage 3 of the project, unlocking the next chapter in a transformation that combines heritage with bold ambition.
Set to deliver more than 880 new apartments, a six-star hotel, premium retail and office space and a reimagined Village Cinemas, the revitalised Jam Factory is the centrepiece of Council’s $4.3 million Chapel Street Precinct Improvement Plan.

“The Jam Factory is part of Chapel Street’s story, and this redevelopment will ensure it plays a leading role in its future,” said Mayor Cr Melina Sehr.
“We’re delivering housing, hospitality, jobs and public space all in one landmark project. And importantly, we’re doing it while preserving what makes this site iconic — the red brick façade and the historic chimney that locals love.”
The updated plans include a larger Town Square, reinstated heritage laneways, improved pedestrian access and sunlit public spaces. Revised designs also reduce overshadowing, improve building separation, and ensure a high standard of amenity for future residents.

“This is a bold, beautiful redevelopment that will bring new life to Chapel Street and secure its future as a vibrant, thriving destination,” said Cr Sehr.
Construction on Stage 1 is already underway, with further stages to follow – bringing this once-in-a-generation project closer to reality.