Government building to be demolished into $2 million + hot spots for 500 new homes

Former government construction sites could be rezoned in one of Melbourne’s wealthiest suburbs, making room for hundreds of new homes.

The former Vicroads headquarters has now been reclassified for residential and commercial purposes, and can offer up to 500 new homes in Kew.

Kew is a suburb with a median home price of $2.6 million, one of Melbourne’s most popular suburbs, close to the city, good amenities and its location within the ideal school area.

Victoria, Victoria, all said 10% of homes delivered on site must be affordable. They have no indication of the remaining 90% of the expected market.

Vicroads has served as the headquarters in Kew for more than 60 years before officially closing in 2024, with staff moving elsewhere. A feasibility study was conducted in 2010 on its potential sales.

Now rezoned, the site is expected to have a mid-rise apartment building.

The initiative is part of a broader effort to free up surplus government land across the state.

The median house price in Kivo is $2.6 million. Image: Getty

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The site is near the key junction and has the potential to provide homes in the newly designated “Train and Tram Area” event centre, which the government aims to build taller residential buildings near some of Melbourne’s busiest public transport corridors.

Victoria’s Housing and Construction Minister Harriet Shing said the opportunity to reuse government land is a way to increase housing supply.

“It is now a good use of this iconic office building located at the heart of the new train and tram area, which can be used well – providing the home they need in the interior east,” she said.

Victoria development is providing master plans for the site and has begun investigating ways to repurpose a mid-century office building located at the southern end of the site.

Government agencies have previously invited community feedback to help shape the website’s future in March and April 2025.

Feedback was collected through the Community Wish Report, which will help guide the direction of the website and form part of the developer’s bidding process.

The Victoria developers also invited developers to express their interest in providing new homes on site as part of the rapid development plan.

The expression of interest applications was closed in mid-May. Shortlisted developers will be invited to submit detailed suggestions soon, with successful partners announcing later in 2025.

“The building has layouts and structures that may be suitable for repurposing for the home and mixed-use spaces,” said Niall Cunningham, acting CEO of Victoria.

Early works on the site are expected to begin in 2026.

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