The proposed apartment tower, having a floor area of greater than 25,000 square metres, needs approval by Mr Guy. It isn’t expected to be too controversial given the historic component facing Elizabeth Street will be retained. But because the site is not on a corner, apartments in the project risk losing natural light as sites around it are developed.

Across the road at 450 Elizabeth Street, a proposal to replace another backpackers venue with a 55-level, 541-unit residential tower, was also reviewed by the minister.

At 320 Queen Street, Mr Guy will decide whether the Celtic Club can replace its headquarters with a 266-unit hotel and residential building. The club lodged the application for the 48-level building after anticipating that a 43-level proposal, to be decided by the Melbourne City Council, would be declined.

Mr Guy recently approved a 749-unit apartment compound in Spencer Street, West Melbourne, and another, in Southbank, that will rob the million-dollar views enjoyed by occupants of Freshwater Place, renowned (but not for much longer) as the suburb’s most prestigious building.

The 154-year old Royal Saxon is around the corner from the Macs Hotel in Franklin Street – Melbourne’s oldest surviving purpose-built hotel in continuous use, according to council.

Because of the central role Elizabeth Street had from 1851, a number of pubs were developed (and have since been demolished) in the immediate area including the Federal Club Hotel, York Hotel, Victoria Hotel, The Old Lamb Inn, The Sir Walter Scott and Highland Chief.

Another historic hotel, the Stork, at 500 Elizabeth Street, is set to be replaced by a 67-level apartment building. That 1030 square metre site (incorporating the adjoining former Backpacker Auto Sales) was snapped up by builder The Brady Group after a heated auction four years ago.

Throughout that marketing campaign, the property was expected to sell for about $6.5 million, but instead it sold for $11.8 million.

Between Elizabeth and Swanston streets, the former college is near the Carlton suburb border. In years to come the site will lose light from the impact of two skyscrapers proposed in the immediate area, including a 61-level skyscraper earmarked to replace the Stork Hotel at 504 Elizabeth Street (pictured, above).

Last week, The Age reported a development application has been lodged for another former Carrick college, at 36 – 40 La Trobe Street. That smaller 589 square metre block is mooted to become a 32-level tower with 64 car park bays and 216 mostly one-bedroom flats.

In recent months, small CBD blocks have been approved to make way for dense apartment proposals. The most ambitious is arguably at 276 Russell Street, where a 36-level, 117 metre apartment building with 154 flats but no car parks is earmarked for a 381 square metre block behind the State Library.

At 82 Flinders Street, a 29-level, 88.5 metre tower with 28 flats is earmarked for a 163 square metre block that was the former Phoenix Bar.

With just 12 metres frontage to La Trobe Street, the 589 square metre site is earmarked for a 32-level tower with 216 flats, most of which will be configured with one bedroom. A four level underground car park – utilising car stackers – will provide 64 parking bays.

The Elenberg Fraser designed tower will occupy about 82 per cent – or 464 square metres – of the block’s land area, and rise 104 metres. Melbourne City Council is reviewing the application.

Last December, the owners of Flinders Street’s popular Phoenix Bar closed the venue so the 163 square metre block could be replaced with a 29-level, 28-unit apartment tower that will rise 88.5 metres.

Their proposal, for a site with just 6.7 metres road frontage, was approved after a 41-level application was rejected by both council and the Victorian Civil and Administrative Tribunal.

At 276 Russell Street, and on a 381 square metre block behind the State Library buildings, VCAT this year approved the construction of a 36-level, 117 metre tower – Crystal Gardens – which would have 154 flats but no car parks.

In South Yarra, a controversial development at the prominent south-west corner of Chapel Street and Alexandra Avenue, and with units that will overlook Melbourne High School, quietly increased in density last month – from 99 to 180 flats.

The mission-brown building was sold by receivers to Chinese developers during the economic downturn, and after a series of legal disputes prevented the NMC organising a joint venture partner to redevelop the site into a club room, hotel and apartment tower.

NMC’s proposed redevelopment was expected to save its future – and indeed give it an income stream which could have allowed it to grow.

But instead NMC collapsed and private developer Golden Age picked up the site for a bargain $10 million last July.

Golden Age has since proceeded with plans to redevelop the site into something very similar to what NMC had proposed (and which the neighbouring Melbourne Club famously opposed).

A proposed image of its tower is below.

It told Capital Gain this week 80 per cent of apartments within the 32-level tower have sold, allowing construction to start within weeks. A total of 188 dwellings, over 17 levels were available for investors to occupy. Colliers International marketed these units.

Another 170 accommodation rooms, as well as a day spa, pool and signature restaurant will spread over the remaining 15 levels, and be managed by boutique hotel operator Sheraton.

The 1857 square metre site, 27 – 39 Mackenzie Street came permit for a 32-level, 388 unit apartment complex (pictured).

Mr Schwartz’s Pan Urban paid $10.8m in 2008.

The developer told the AFR “financing large scale developments was tough, with banks demanding equity contributions and presales that were out of reach for some developers.”

“The banking situation has made it difficult for smaller groups,” he added.

Chip Eng Seng has completed two Adelaide projects but MacKenzie Street will be its first in Melbourne.