The Victorian Government has announced its plan to turn a former State Government office building into hundreds of new homes, including a minimum ten per cent affordable housing component.
Victorian Minister for Housing and Building, Harriet Shing, visited the former VicRoads Headquarters in Kew to announce the rezoning of the surplus government land site, with the aim to convert an existing building on the site into housing.
The land was rezoned for residential and commercial use to deliver approximately 500 homes – subject to necessary approvals – including a minimum ten per cent affordable housing component.
The Victorian Government is formally investigating repurposing the unused mid-century office building on the southern end of the site, with initial investigations showing it could be suitable for adaptive reuse because of its layout and structure.
The building is close to the bustling Kew Junction, which is one of the 25 new train and tram zone activity centres for more homes for young people near transport, jobs and services.
Development Victoria is delivering a master plan for the site and will carry out further investigations, with the aim to commence early works in 2026.
The State Government is also investigating partnerships with the private sector to deliver the remaining residential or mixed-use development, ensuring a diverse mix of housing options across the site.
As part of the landmark Housing Statement, the Victorian Government said it is working with the Property Council of Australia to explore the opportunities to convert underused office buildings in the CBD into homes.
The Victorian Government said repurposing the old VicRoads Kew site is the first step in this revolution – providing insights into adaptation and retrofitting to support more conversions.
The State Government is also unlocking more surplus land with the potential to deliver up to 350 homes, including a minimum ten per cent affordable housing component. Six of the sites include:
- Surplus education land at 72–84 Belmont West Rd, Croydon South
- Surplus health residential land on Grattan St, Carlton
- Surplus TAFE carpark land at 377–407 Waterdale Rd, Heidelberg West
- Surplus government land at 40 Lavendar Lane, Baxter
- Surplus VicTrack land on McLaren St, Bendigo
- Surplus VicTrack land at 58 Maurice St in Herne Hill, Geelong
The State Government said these underutilised government-owned sites are ideal for homes for locals – close to existing schools, hospitals, jobs and transport.
It is the second tranche of the Small Sites program, building on the success of the pilot program, which saw strong market interest from developers for four sites in Alphington, Coburg, Preston and Malvern.
A further two sites in Oakleigh and Footscray were released by VicTrack in October 2024 through a separate procurement process.
The next stage of program will kick off with an expression of interest (EOI) campaign in April 2025, seeking interest from developers with experience in delivering apartment and townhouse developments.
The number of homes delivered on each site is subject to relevant approvals. If approved, construction is expected to commence in 2027.
More sites are expected to be added to the second tranche of the Small Sites program prior to the EOI release in April 2025.
The Victorian Government said through the program, it is unlocking and rezoning surplus government land in Melbourne and regional Victoria to deliver around 9,000 homes across 45 sites.
Ms Shing said unlocking surplus government land is one of many ways the State Government is increasing housing supply.
“More young people should be able to live closer to where they grew up, and more workers deserve the opportunity of a home that’s closer to their job.
“This iconic office building at the heart of the new train and tram zone in Kew Junction can now be put to really good use – giving more people in the inner east the homes that they need.”
Victorian Member for Southern Metropolitan, John Berger, said, “Kew Junction is a great place to live with heaps of transport options – putting more homes here just makes sense.”
