Prime Kew land one step closer to becoming new housing precinct

The race to redevelop a government site in Melbourne’s inner-city has narrowed, with four developers shortlisted to submit plans to deliver up to 500 new homes.

Riverlee, Lendlease, Mirvac and a Milieu-led consortium have been selected to participate in a request for proposal process to deliver new housing at a former VicRoads site in Kew. 

Once the VicRoads headquarters for over 60 years before closing in 2024, the site in Kew was rezoned for residential and commercial use – with the potential for 500 new homes to be built, including a minimum of 10% affordable housing.  

The initiative is part of a broader effort to unlock surplus government land across Victoria.  

The site is expected to feature mid-rise apartments, along with public spaces and pathways.  

Development Victoria, which is delivering the masterplan, noted it is also considering repurposing one of the vacant commercial office buildings for housing.  

Development Victoria acting executive general manager housing, Nemesia Kennett, said there was a strong response from developers during the expression of interest stage.  

“Each shortlisted developer brings a depth of expertise and proven track record in delivering quality housing projects, achieving excellence in design and community outcomes,” she said.  

“We’re looking forward to seeing the shortlisted developers’ proposals and understanding how they will deliver the best outcomes for the community if successful.”  

Community feedback 

From March to April 2025, Development Victoria consulted with Boroondara Council and engaged with the local community for feedback on the proposed development.

According to the government agency, 45 people attended two in-person Q&A sessions, 219 survey responses were received, 51 location-based comments were pinned to maps of Kew and the project site, and five formal written submissions were received. 

The feedback showed support for developing the site, with many people viewing the project as an opportunity to revitalise the Kew Junction retail and entertainment precinct. 

While most participants accepted the proposed 500 apartments, a small group suggested townhomes might better reflect the area’s existing character. 

“The report found overwhelming community support for redevelopment of the site and recognition of the urgent need for more homes in Kew,” Ms Kennett said. 

“Feedback also highlighted opportunities to revitalise public areas, improve walking and cycling connections, create more green open space, and celebrate the site’s heritage, including its rail history and Wurundjeri cultural stories.” 

A development partner is set to be confirmed in 2026, following a thorough assessment of proposals. 

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