Abandoned Australia: Plans for derelict Moe Hospital revealed

For nearly three decades, the former Moe Hospital has stood as a decaying relic of the past, its shattered windows and graffitied walls a stark reminder of neglect in Victoria’s Latrobe Valley.

But now, the 13,651-square-metre site in Newborough is up for sale, sparking calls for it to be transformed into desperately needed housing.

The hospital, located on Ollerton Ave, was closed in 1998 as part of then-Premier Jeff Kennett’s consolidation of regional health services.

While the larger Latrobe Regional Health facility replaced it, the Moe site was left to rot, becoming a target for vandals and a blight on the community’s efforts to rebuild its reputation.

A housing opportunity in waiting

With housing affordability and availability reaching crisis levels across the region, locals and experts alike are urging authorities to seize the opportunity to repurpose the site.

Gippsland Homelessness Network (GHN) data reveals that in 2024-25, 3,644 households sought homelessness services across Gippsland, the ABC reports, with nearly 400 of those individuals employed but unable to secure housing.

Latest PropTrack data shows houses in the Latrobe – Gippsland statistical region rent for $460 a week and units for $350.

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The former Moe Hospital at 84-96 Narracan Drive Drive, Newborough, VIC has been listed for sale.

Still images of the old Moe Hospital. Source: Win News

Still images of the old Moe Hospital. Source: Win News

A significant increase to rental data recorded just three years ago, when house and units leased for $400 and $300, respectively.

Nina Burke, president of Great Latrobe Park and former chair of the Save the Moe Hospital group, believes the site’s potential is undeniable.

“The hospital itself is quite unique; it has very broad corridors and good-sized wards,” she told the ABC.

“It could be redeveloped into apartments, and there is a pressing need for housing.”

Ms Burke also highlighted the site’s strategic location, close to aged-care facilities, public transport, and with ample parking.

She suggested it could even serve as housing for carers or other essential workers.

“Let’s use this infrastructure that we’ve got and think about it creatively,” she said.

“It’s a great, unused community facility.”

A community’s vision for renewal

Retired nurse Judy Redman, who worked at the hospital from its opening in the 1970s until shortly before its closure, echoed the sentiment.

“I think the population of Moe and Newborough are quite sad that it’s sitting there in such a derelict state,” she told the ABC.

“Housing is very difficult – maybe it could be turned into units and sold as private dwellings, or even somewhere for the homeless to live.”

The site’s redevelopment could not only address the housing shortage but also serve as a symbol of renewal for a community that has long felt overlooked.

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The old Moe hospital on Ollerton Ave, Newborough. Picture: Jack Colantuono

The old Moe hospital on Ollerton Ave, Newborough. Picture: Jack Colantuono

University of Melbourne professor Alan Pert described the hospital as a “powerful symbol” of systemic neglect.

“It’s not just an empty building; it’s a sign of deeper systemic neglect,” he said.

“It raises real questions about designed obsolescence, waste, and short-term thinking in design.”

While the site’s future remains uncertain, the sale has reignited discussions about how to best use the space to benefit the community.

Advocates are calling for government intervention to ensure the site is redeveloped responsibly and sustainably.

A site of controversy and interest

The abandoned hospital has also drawn attention for less savoury reasons.

Earlier this year, six people were charged with stealing $10,000 worth of copper from the site, including 800kg of cabling and plumbing.

Police recovered a stolen truck and tools used in the thefts, with the accused set to face court in the coming months.

The site’s eerie state has also made it a fascination for urban explorers and abandoned property enthusiasts, who have shared its haunting images online.

YouTuber Stefanie Agrimi took a look inside the old hospital.

Along with graffiti, Ms Agrimi found some old documents. Source: YouTube.

Among them is YouTuber Stefanie Agrimi who shared three walk-through videos on the former Moe Hospital with her followers last year.

The videos appear to show the hospital’s old service tunnels, where works would have dropped old laundry, stored medical equipment and generators.

One room even appeared to house old floor maps, stuck behind a pipe on a wall.

Other tunnels were covered in graffiti, a sign of the hospital’s attraction for bored youth and explorers.

A new future awaits

The old hospital site has come to the market as part of a three-title site sale, which also includes the former nurse quarters (currently leased to multiple tenants, providing holding income) and a vacant residential infill site, ideal for subdivision or integration into a broader masterplan.

The sale is managed through VicAcres and Melbourne Commercial Group.

No price has been made public.

The post Abandoned Australia: Plans for derelict Moe Hospital revealed appeared first on realestate.com.au.