Chapel Street has always been one of Melbourne’s most recognisable lifestyle precincts. Stretching through South Yarra, Prahran and Windsor, it brings together dining, retail, nightlife, wellness, entertainment, apartments, offices and community spaces in a way few Melbourne streets can match.

But like many major high streets, Chapel Street has also had to adapt. Changing shopping habits, rising business costs, vacant shopfronts and concerns around safety and presentation have all shaped the conversation around the precinct in recent years.

In 2025, Stonnington City Council launched the Chapel Street Precinct Improvement Plan, backed by a $4.38 million investment designed to support safety, cleanliness, visitation, business confidence and long-term renewal.

Now, as the plan moves into 2026/27, Council has committed a further $4.4 million to continue the work.

For residents, traders, property owners and anyone who spends time in South Yarra, Prahran or Windsor, this next stage is worth watching.

What has been achieved so far?

The council’s Year 1 snapshot (July to December 2025) showed early progress across several key areas:

What is planned for 2026/27?

The 2026/27 stage of the Chapel Street Precinct Improvement Plan is focused on five key areas: visitation, safety, amenity, business support and planning.

Focus area 1: Visitation

Driving footfall and spend though marketing, promotion and activation

The focus this year:

• Promote Council’s programs that drive public engagement and events at Prahran Skate Park, Greville Street Library, Prahran Pool and Grattan Gardens Community Hub 

• Support community groups, organisations and businesses to deliver events and activations within Stonnington, including along Chapel Street

• Support creative opportunities in the public realm to encourage social connection and visitation

• Seek investment for Chapel Street as a tourist destination through ongoing advocacy to State Government.

Focus area 2: Safety

 Improving real and perceived safety in the precinct

The focus this year:

• Deliver events and activities to increase foot traffic, supporting people’s sense of safety

• Partner with the Salvation Army to support vulnerable individuals at night through the Street Team and Pink Car initiatives

• Partner with Launch Housing to deliver ‘Stonnington Zero’, a collaborative effort to address homelessness through housing support and advocacy

• Deliver community safety campaigns and programs with Victoria Police and community

• Deploy a Council community safety trailer to identified local safety hotspots

• Advocate to State Government to

» Fund a daytime assertive outreach program aimed at supporting vulnerable community members, including a café/safe space, support hotline and a dedicated response team, informed by recommendations from the Salvation

• Army’s pilot in year one

» Increase enforcement patrols by Victoria Police 

» Strengthen enforcement against illegal tobacco outlets 

» expand CCTV investment

•Progress installation of new signage prohibiting alcohol consumption in key locations to reduce alcohol-related violence

• Participate in collaborative committees including the Community Safety Committee, Victoria Police Neighbourhood Policing Local Safety Committee, and Liquor Forum.

Focus area 3: Amenity

Improving public space and presentation

The focus this year:

• Deliver the extended cleaning service for the Chapel Street precinct

• Deploy three roaming Clean Team staff along Chapel Street for daily cleaning and street sweeping*

• Undertake proactive graffiti inspection and removal.

*$265,000 funding from the Special Rates Scheme in addition to Council’s operating budget

Focus area 4:Business support

Supporting traders to thrive

The focus this year:

• Acknowledging the unique challenges facing the night-time economy, continue to work with operators to support their industry

• Provide dedicated Business Concierge services to support prospective and new businesses with Council permits, applications, and document requirements

• Deliver training for businesses on topics such as safety, social media, shopfront presentation and facilitate business mentoring programs  

• Distribute a business handbook to make it easier for businesses to do business

• Deliver seasonal events and activation to enable businesses to attract customers

• Facilitate the Stonnington Liquor Forum in collaboration with Victoria Police and Liquor Control Victoria to address safety, security and related issues affecting licensed premises and connect businesses to government

• Undertake regular engagement and outreach to traders and businesses as part of delivery of year two of the Chapel Street Precinct Improvement program.

Focus area 5:Planning

Long-term planning, controls and precinct development

The focus this year:

• Ensure policy and permit requirements enable capital investment that contributes to a high-quality public realm

• Plan and advocate for new and/or improved open space

• Advocate for high-quality planning, design and public realm outcomes in the context of the State Government’s activity centre reforms.

A positive step for the local community

The Chapel Street Precinct Improvement Plan is not an overnight fix. The challenges facing the area are real, and meaningful change will take time.

But the continued investment for 2026/27 is a positive sign.

With further funding, visible early progress and a focus on safety, presentation, business support and long-term planning, Chapel Street’s next chapter is beginning to take shape.

At Shape, we see Chapel Street as one of Melbourne’s most important lifestyle precincts – not only because of its history, but because of the role it continues to play in local life across South Yarra, Prahran and Windsor.

For anyone living, working, investing or doing business nearby, this is a local transformation worth keeping an eye on.

For a full detailed breakdown, read Stonnington City Council’s official Chapel Street Improvement Plan