South Melbourne Market stall owners warn prices could rise if their rents go up

“We never asked about a rent increase, and we understood that,” he said. “[But] quite difficult at the moment.”

Zahos admits that the organizers are not putting up his rent during the 2020 and 2021 COVID-19 lockdowns and he expects an increase this year.

However, he said, after lost revenue due to the pandemic and rising costs due to inflation, the proposed amount was extraordinary. He also declined to disclose the amount.

Fresh produce stalls remained open during the lockdown, while other stalls were forced to close.

Another stall owner who spoke to Sunday Time did so on the condition of anonymity, fearing it might affect negotiations.

One woman, whose rent could increase by about 30 percent, accused the committee of being a bully.

“They’re going to basically bankrupt our business … during a recession, during a pandemic,” he said.

The woman said she felt pressured to give her financial records.

“That is outrageous, disgusting behavior. We were treated like children,” he said.

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Another stall owner, whose rent could increase by about 40 percent, called the move a “shake”.

“They tried to draw blood from the rock,” he said.

“Before you know it, the face of the market will change forever into a glorified food court as take-out food or the big chains will be the only ones to survive.”

A fourth stall owner said prices could soon be as high as at Stonnington Council-run Prahran Market, while another said the process had caused him great stress. “It’s like hell,” he said.

Port Phillip Council owns and operates the South Melbourne Market. The land was made available under a crown grant for the public market in 1867.

Mayor Marcus Pearl said the council provided $1,193,725 rental support to kiosk owners affected by the COVID-19 lockdown and that the rent increase was the first in three years.

“The reality is it is expensive to run and maintain a market of this size and complexity,” he said. “This means we have to increase rental rates to meet our obligations to rate payers to keep the market financially sustainable.”

Pearl said the board aims to keep rents as low as possible for traders and most would face a 3.5 percent increase.

He said the committee considered the public benefits of the market and required financial records to ensure kiosks could remain viable.

The committee charter names the market as one of the council’s “key infrastructure assets” and notes its intention to develop it as a “key spending destination”.

“The market is an integral part of [the] the board’s long-term financial sustainability and, as such, must continue to operate profitably and competitively,” he said.

Cool shoppers Amor, Terry Lees and Linda Pankhurst at the South Melbourne market on Saturday.Credit:Simon Schluter

On Saturdays, the market is bustling with people, some there for their weekly shopping, others to sightsee or meet friends.

Terry Lees, who has shopped at the market for 30 years and now visits three times a week, said if prices went up, he would shop at other markets more often, including Queen Victoria Market.

“This [market] will not compete with Vic Market,” said the South Melbourne resident. “This will force some people out because they don’t want to raise prices and [make the market] more expensive.”

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Keren Amore says that she does her main shop at Preston Market, which has lower prices, and that she came to South Melbourne to buy a few select specialty items. A Northcote local said he would still visit if prices went up.

The usual Linda Pankhurst, who lives on St Kilda Street, said she would also continue to shop at the market, but she was worried about people on low incomes and stall owners.

“A lot of these people have really struggled, especially over the last few years,” he said.

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