Mr Hocking submitted development plans to build 38 apartments on a small site he owns at 31-33 Park Street in South Melbourne.

"I've held the building for a long time in that spot and the building is now past its economic life, so it just made sense to get a permit," Mr Hocking said.

The block houses a small, three-level office. On the other side of the street are a 15-level tower and 11-level apartment.

Mr Hocking's plans were rejected by the council, which wanted the proposed building to conform with yet to be finalised mandatory setbacks for the area.

The council also said the development would be unreasonably bulky and cause "unacceptable" shadowing of the next door property's rooftop decks.

That negative impact was outweighed by the rest of the development, the Victorian Civil and Administrative Tribunal said.

"We think the proposed development is the only logical way to develop the site," it said.

The Fender Katsalidis-designed structure was approved two weeks ago.

It will include two retail outlets (totalling 99 square metres) on the ground floor and be made of precast concrete with stainless steel and plywood cladding.

"I'm exploring what [the] site might be worth as to whether I just move the site on with a planning permit or whether I go ahead and do it myself," Mr Hocking said.

Mr Hocking founded Melbourne's well-known Hocking Stuart real estate business before selling and establishing another agency with nine offices under the Greg Hocking group brand.