The city of five million, which re-emerged from its sixth lockdown last week, was reopening further as full vaccination rates across Victoria state, of which Melbourne is capital, was set to reach 80% for those 16 and older.
People queued at malls and boutiques despite cool weather for their first in-person shopping since early August, waiting to be let in as capacity limits were observed, television footage showed.
A crowd of 5,500 were expected to attend the Victoria Derby racehorse on Saturday, the first large event in post-lockdown Melbourne, which was to be followed by a concert for 4,000 fully vaccinated at the Sidney Myer Music Bowl in the evening.
Victoria reported 1,355 new daily COVID-19 infections, its lowest in nearly a month. There were also 11 deaths reported, with health authorities saying serious infections mainly affected the unvaccinated.