Green light given for construction of 108-storey Melbourne building

Auckland's Sky Tower building in New Zealand will be knocked off its pedestal as the tallest building in the southern hemisphere, after the construction of a 108-storey Melbourne tower was given the go ahead.

The Victorian Coalition government's approval of the 388 metre tall building will change the Melbourne skyline, to stand - on completion - as the world's 19th tallest building.

"This tower signifies the best of Victorian architecture and a drive for enterprise and ingenuity that exists nowhere else in Australia," said Victorian minister for planning Matthew Guy.

"The Australia 108 mixed-use tower will be an icon both visually and for those who will live in it, stay at its hotel, dine at the level 84 Sky Lounge or visit the level 108 Star Bar."

The building, named Australia 108, will feature a 288-room six star hotel, 646 apartments, as well as retail and office spaces.

The $600 million investment into the Victorian economy is expected to create 300 jobs in the construction and hospitality industries.

Mr Guy added that every apartment in the tower is "one less apartment in an existing quiet neighbourhood".

The project is located in Southbank and is expected to "progress quickly" due to interest generated by its aspiration and design.