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A brash boosterism that had typified Melbourne during this time ended in the early 1890s with a severe depression of the city's economy, sending the local finance and property industries into a period of chaos during which 16 small "land banks" and building societies collapsed, and 133 limited companies went into liquidation. The Melbourne financial crisis was a contributing factor in the Australian economic depression of the 1890s and the Australian banking crisis of 1893. The effects of the depression on the city were profound, with virtually no new construction until the late 1890s.

When did new construction start in Melbourne?
late 1890s