Many members of the IOC were sceptical about Melbourne as an appropriate site. Its location in the Southern Hemisphere was a major concern, since the reversal of seasons would mean the Games must be held during the northern winter. The November–December schedule was thought likely to inconvenience athletes from the Northern Hemisphere, who were accustomed to resting during their winter.
Notwithstanding these concerns, the field of candidates eventually narrowed to two Southern Hemisphere cities, these being Melbourne and Buenos Aires, Argentina. Melbourne was selected, in 1949, to host the 1956 Olympics by a one-vote margin. The first sign of trouble was the revelation that Australian equine quarantine would prevent the country from hosting the equestrian events. Stockholm was selected as the alternative site, so equestrian competition began on 10 June, five and a half months before the rest of the Olympic Games were to open, half a world away.
The above problems of the Melbourne Games were compounded by bickering over financing among Australian politicians. Faced with a housing shortage, the Premier of Victoria (Henry Bolte) refused to allocate money for the Olympic Village (eventually sited in Heidelberg West), and the country's Prime Minister (Robert Menzies) barred the use of federal funds.
At one point, IOC President Avery Brundage suggested that Rome, which was to host the 1960 Games, was so far ahead of Melbourne in preparations that it might be ready as a replacement site in 1956.
As late as April 1955, Brundage was still doubtful about Melbourne, and was not satisfied by an inspection trip to the city. Construction was well under way by then, thanks to a $4.5 million federal loan to Victoria, but it was behind schedule. He still held out the possibility that Rome might have to step in.
By the beginning of 1956, though, it was obvious that Melbourne would be ready for the Olympics.