Council is leasing a council-owned site at 325-341 Victoria Street, West Melbourne for the purpose of affordable housing. We will run a process to select a community housing provider to secure funding, build and manage affordable housing at the site. The project will provide housing for people on very low to moderate incomes.

The site is currently used as a car park.

The City of Melbourne is strongly committed to delivering affordable housing across the municipality and has this in the Affordable Housing Strategy 2020 – 2030. This commitment includes delivering affordable housing on Council land through partnerships with State and Federal governments and community housing providers.  

The demand for more affordable housing is significantly higher than supply, and there is an urgent need to take action.  

The City of Melbourne currently estimates the city has a shortfall of more than 6,000 affordable homes and this is likely to increase to 23,000 by 2036.   

Every Melburnian deserves a safe place to call home and projects like these will increase the supply of housing in the City of Melbourne.    

Affordable housing helps support people on low incomes by providing housing at below the market rate – enhancing liveability in our city, the diversity of our community and the productivity of our economy.    

Research shows that investing in affordable housing is economically beneficial: for every $1 invested, there is a $3 worth of community benefit through improved worker retention, educational outcomes, enhanced human capital, health cost savings, reduced family violence, and lower crime rates.

Projects to develop affordable housing enable a range of people to live in our communities, including key workers, who provide essential services to the community and are vital to our economy. Examples of key worker occupations include cleaners, childcare workers, and chefs.

In 2024, Council conducted formal community engagement on the proposal to lease two Council owned sites, 44-60 Curzon Street, North Melbourne and 325-341 Victoria Street, West Melbourne.

During this period Council received over 1000 pieces of feedback through online surveys, conversations at in-person and online information sessions, written submissions, a focus group and signatures on a petition in relation to the proposal.

We found 69 per cent of survey participants either agree or strongly agree that the issue of affordable housing is important and 72.5 per cent either agree or strongly agree that Council-owned land should be used strategically to meet evolving community priorities.

In response to feedback, further studies were conducted and additional information sessions were held for traders and the general community throughout August 2024.

Most recently, 47 written submissions relating to the decision on this project at the 27 August 2024 Council Meeting were received. From these submissions 25 supported the proposal, 18 opposed it, 3 specifically opposed Curzon Street, and 1 requested that Council defer its decision.

This recent feedback adds to earlier feedback. In 2022, Council consulted the community on the proposal to use the Curzon Street site for affordable housing. A majority of respondents, 76 per cent, supported affordable housing and wanted to see more of it integrated throughout the City of Melbourne. Respondents identified a range of benefits of affordable housing including addressing the broader need for affordable housing and providing housing diversity to the area. Some respondents reported concern over the availability of parking in the area and about the negative social impacts on affordable housing development could have.

This sentiment was confirmed in Council’s Neighbourhood Survey, conducted earlier in 2024. Results from our communities showed Affordable Housing and Homelessness Support was their highest priority overall.

These sites were identified as suitable for affordable housing because of their location, their proximity to public transport and amenities and as an opportunity to maximise under utilised space. Affordable housing at these sites support communities of mixed economic and social status, enhancing diversity, liveability and productivity of our economy.

Council has adopted its Affordable Housing Strategy 2020-2030. Priority one of the strategy commits to, “Deliver more affordable rental housing on City of Melbourne-owned land. (To) use City of Melbourne-owned land to increase the supply of affordable rental housing. (Council) will trial and showcase alternative and innovative housing models and partner with key stakeholders across sectors to achieve the best possible development outcome.” 

Council will partner with a community housing provider who will be responsible for securing funding to deliver and manage the project. Council’s contribution to the development would be the land under a long-term lease.  

People were invited to complete a survey about the proposal, attend an information session or provide comments over the phone or via email.  

Consultation on the proposal was promoted via: 

• Letterbox drop to all residents, /owners and /businesses within 500 meters of each site .
• Posters at each site.
• In person and online surveys.
• Project page on Participate Melbourne.

Consultation took place from 1 May – 30 May 2024.  

We will establish a project reference group made up of residents, local businesses and traders, and people with lived experience of affordable housing to help guide next steps of the project. This will include relevant requirements of the selective public process and management of issues, like safety, economic development and parking, raised through this engagement process.  The broader community will also be consulted at key stages including at the planning application stage. 

Council will begin a selective public process to gauge market interest and identify a community housing provider to secure funding, build and manage affordable housing at the land at 325-341 Victoria Street, West Melbourne. 

At this point we don’t have any dates for future stages of this project.

There are a number of stages this project would need to move through before construction would begin. This includes finding a suitable a community housing provider to build, manage and secure funding for affordable housing at the site. The community housing provider would then need to secure funding for the project, and then obtain planning approval.

Yes. The Victoria Street car park will remain open to the public until works begin at the site.

There are a number of stages this project would need to move through before construction would begin. 

A planning application will be submitted by the relevant community housing provider.

The development will need to be a high-quality, well-designed building and align with Council’s Design Excellence Program. 

It will be designed to integrate with the surrounding neighbourhood and minimise impact on neighbouring properties and comply with relevant requirements of the planning scheme.

Environmental sustainability will be considered throughout the project.

The competitive tenant selection process will include requirements relating to sustainability.

Retaining and enhancing greenery throughout the city is important, providing many local benefits. In accordance with Council policy mature trees on the site will be protected and retained to the maximum extent possible.  

A wide range of people need affordable housing at different times in their lives. The development on Victoria Street, West Melbourne, will provide homes for individuals or families in our community, including key workers and older people, who are on very low, low, or moderate incomes.

Council will focus on the delivery of Victoria Street development and has deferred further consideration on leasing 44-60 Curzon Street, North Melbourne, for affordable housing until after the Victoria Street project is delivered.

In the interim, the site will operate as a car park. 

Car parking studies conducted in June 2024 found the 47 spaces lost due to the development of 3254-341 Victoria Street can be readily accommodated by surrounding street network. It was noted through this study at the busiest time surveyed, there were 59 car parks available within a three-to-four- minute walk of the Victoria Street site.

Between 2021 and 2024, five car parking reports were conducted to survey the use of the off-street car parks at Victoria and Curzon streets to assess the potential impacts of their removal.

The June 2024 study concluded that there is sufficient on-street parking to offset the potential loss of the Victoria Street car park.

Conducted from Friday, 31 May to Saturday 1 June, between 6pm and 2am, the study focused on 3 – 4 minute walking catchments for Victoria Street. It found that event at the busiest time, 8pm on Friday, the car park was 79 per cent full, with 37 of 47 spaces occupied. At this time, there were still 59 unoccupied spaces out of 302 publicly available within a 3 – 4 minute walk of the Victoria Street site.

There is limited evidence that new affordable housing developments impact crime rates, and developments can be designed to minimise opportunities for crime by incorporating Crime Prevention Through Environmental Design (CPTED) principles.  

We will continue to undertake work to better understand and respond to safety, lighting, economic development and transport issues in and around North and West Melbourne.  

Housing is a critical infrastructure for any city, essential to both a functioning society and economy. Research shows that investing in affordable housing is economically beneficial: for every $1 invested, there is a $3 worth of community benefit through improved worker retention, educational outcomes, enhanced human capital, health cost savings, reduced family violence, and lower crime rates.

Affordable housing is crucial for the ongoing success of cities and regions. A lack of sufficient affordable housing leads to economic and social challenges.

We have heard from local businesses a challenge they face is staff recruitment / attraction. Projects to develop affordable housing will enable a range of people to live in our community, including key workers, who provide essential services to the community and are vital to our economy. Examples of key worker occupations include cleaners, childcare workers, and chefs. Our research indicates that key workers typically earn lower incomes, often commute long distances, and experience 'housing stress'—spending more than 30 per cent of their gross household income on housing. We know there is a significant demand for affordable rental housing among key workers in the City of Melbourne.

Social and affordable housing can enhance social inclusion and cohesion by offering stability, empowerment and promoting community ties. Stable tenure from affordable housing promotes commitment to local areas, strengthening relationships and providing security. Research indicates that affordable housing contributes to increased happiness in children, better attendance, and improved educational performance. Additionally, affordable housing can boost employment and job search efforts due to reduced stress and increased housing stability.