The Victorian Civil Administrative Tribunal upheld an earlier Maribyrnong Council decision to reject the proposal for a three-building apartment complex on the 8907-square-metre site, comprising 271 apartments, 155 car spaces, 115 bicycle spaces, a gymnasium and cafe.

In their February 26 decision, VCAT members Rachel Naylor and David Alsop said the proposal of the Australian Affordable Housing Association was worthy of praise, but its parking provisions were a third of the standard requirement (544 car spaces) and less than half of that recommended in ResCode (332 spaces).

"The proposed buildings are articulated, contemporary, of high architectural quality and visually interesting ... [but] the car parking provision is the determinative factor in this case and we are not persuaded such a significant reduction in car parking is justified."

Robert Cook, of the adjoining Waterford Green estate, was among 22 objectors to the plan.

He said the decision had restored his faith in the planning system after losing a recent case against the Western Bulldog's "Edgevegas" social club development.

"When that came out, most residents in the area thought VCAT had lost its way a bit and wasn't really looking at what was good for the community - rather what was best for big business. It's [the latest verdict] restored our faith in the tribunal system, for sure."

Maribyrnong Residents Association secretary Alan Ross said he was extremely pleased with VCAT's ruling.

"We're painfully aware, however, that the tribunal saw no fault with the eight-storey height, the concentration of buildings, the lack of private open space, the lack of primary school facilities [in the region] and the significant impact it would have had on traffic."

River ward councillor Dina Lynch said it was inappropriate for developers to keep trying to build high-density housing along Maribyrnong's tram line.

"This is wonderful, wonderful news for our residents.

"The state government policy is to build along tram lines, but our tram line [in Maribyrnong] starts in Footscray and finishes in Moonee Ponds, where you get stuck behind traffic. So how can you use that as an effective public transport system?"

During the VCAT hearing, the applicant refused to accept restrictions on its planning permit that would have insured a certain percentage of affordable housing was provided on the site.

Logan Campbell, managing director of partner company Australian Property Systems Limited, refused to comment.