At its meeting on 28 October 2025, Council selected a Community Housing Provider to deliver key worker housing on a council-owned car park at 325–341 Victoria Street, West Melbourne.

These homes will be for key workers— people who work in the city, such as teachers, nurses, and childcare workers — earning very low to moderate incomes who work in the City of Melbourne but have been priced out of living here.

The proposed four-storey development, includes ground floor commercial spaces to activate Victoria Street and a mix of one, two and three-bedroom dwellings. The proposal also includes a commitment to high-quality and environmentally sustainable design, targeting a 7 star+ energy rating.

What’s next?

The next step is to finalise lease negotiations. Once this is complete, Council will be able to share the name of the preferred housing provider and further information about the proposal.

The provider will then be responsible for securing project finance, finalising designs and obtaining necessary planning and building approvals before construction commences.

It will take several years before the new homes are ready for key workers. In meantime, the site will continue to operate as a public car park.

To learn more about this project, including what we heard through previous engagement and answers to frequently asked questions, visit the project page at Participate Melbourne.

If you have further questions, you are welcome to contact the project team at homesmelbourne@melbourne.vic.gov.au or via phone on 9658 9658.