OVERSEAS investment which could see a proposed mini-city built in Melbourne's western suburbs should be welcomed, not feared, Victoria's planning minister says.
A Southeast Asian developer plans to build a residential and commercial centre in Yarraville, eight kilometres from Melbourne's CBD, on an abandoned 24 hectare industrial site, Fairfax reports.
Victoria's Planning Minister Matthew Guy said the potential development could transform the suburb while providing a jobs boost.
"Melbourne is one of just a few western cities internationally where there is strong interest, particularly from east Asian markets," he said.
"My view is that we should welcome the overseas investment that meets our own guidelines.
"This is about jobs, it's about hundreds of new jobs, it's about providing higher density in areas that can sustain it, around transport, around existing infrastructure, and so I think it is welcome news that we can get brand new developments like this up and running in Melbourne."
He denied overseas buyers were pricing locals out of the market, saying an increase in the high-rise apartment market and the extra housing lots in growth areas had helped to stabilise house prices.
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