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Decision made on future of prized Kew VicRoads site
By Rachel Eddie
The former VicRoads headquarters, which sits on a valuable plot of Crown land in Melbourne’s inner east, could become at least 500 private homes to help tackle the housing crisis, the Allan government says.
But instead of heeding calls to transform the land on Denmark Street in Kew into social housing, the government wants to rezone the land for developers to include a minimum of 10 per cent affordable homes.
The former VicRoads headquarters in Kew has sat empty since late last year.Credit: Wayne Taylor
The government announced its preferred vision for the 2.67-hectare site before Premier Jacinta Allan, Treasurer Tim Pallas and relevant ministers sit down with stakeholders for a housing forum on Monday.
Commercial development would also be allowed under the proposal for a mixed-use site.
The government promised in September to unlock Crown land at 45 well-connected and under-used sites to make way for about 9000 homes, at least 10 per cent of which would be affordable.
Affordable housing rent is set 10 per cent below the market rate in metropolitan Melbourne, but at the market rate in the regions. It is also capped at no more than 30 per cent of the median income of metropolitan Melbourne or of regional Victoria depending on its location.
The commitment to unlock government land was made as part of the state government’s housing statement, which set a target to build 800,000 homes over a decade. The target is already viewed with scepticism given cost pressures in construction and stagnant building approvals.
Consultation has already opened to rezone the land, which was home to VicRoads for more than 60 years before staff were moved out late last year.
The Kew site is bordered by Denmark and Wellington streets as well as prestigious school Xavier College’s tennis courts, athletics track and cricket oval.
The government said the proposed change would create more housing close to schools, Kew Junction shops, jobs and tram stops.
“The status quo isn’t an option. We’re pulling every lever at our disposal to build more homes – that includes unlocking vacant government land to give more Victorians the opportunity to find a home in areas that are well serviced by jobs, transport and services,” said Minister for Precincts Colin Brooks.
“The former VicRoads site in Kew presents a unique opportunity to deliver hundreds more homes in a popular suburb, and we want to hear from the community about the types of homes they want to see.”
Federal Kooyong MP Monique Ryan said in March that the disused land should be redeveloped into social and affordable homes.
State Liberal member for Kew Jess Wilson worried at the time that the prime site could be sold to a developer without proper forethought because the government was “desperate for cash given the dire state of Victoria’s finances”.
Its future has been a source of debate for more than a decade since a 2010 feasibility study to sell it, which valued the land about $75 million. Former Victorian premier Denis Napthine promised to sell the site in 2014 shortly before he lost office.
Developers have kept an eye on it because of its size and its connection to transport and the inner city, particularly given land in the affluent suburb is rarely available.
Housing Minister Harriet Shing told reporters that Monday’s forum at the Melbourne Convention and Exhibition Centre would help progress the housing statement.
Developer, building and housing sector stakeholders were invited.
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clarification
This article has been updated to make clear the definition of affordable housing.