Knox Council proposing sale of 58-60 Station St, Bayswater to developer for social housing

A vacant parcel of land in Melbourne’s east will be sold by the local council to a developer for a fraction of what it’s worth.

Knox Council map showing of 58-60 Station St, Bayswater which the council plans to sell. Picture: supplied

A prime piece of real estate in Melbourne’s east could be sold by the local council for “less than half” its market value in a bid to provide more social housing.

Knox Council is seeking community feedback on a proposal to sell 58-60 Station St, Bayswater to a developer to build crisis accommodation.

The council owned land previously housed Bayswater Youth Hall which was demolished in 2020 after being considered no longer safe for community use.

The now vacant block is zoned for residential use and sits in the heart of Bayswater’s activity centre, opposite the train station and next to a string of new two and three bedroom townhouses.

One of the nine townhouses was valued at $646,000 in May.

The council has not yet revealed the possible sale price of the vacant land.

“If council decides not to proceed with this proposal, sharing details of the possible sale price could impact any future sale negotiations,” a spokesperson said.

Knox councillor and mayor Darren Pearce. Portrait taken in 2016 and supplied by Knox Council.

However, long time councillor Darren Pearce said the sale price was a “whopping 62 per cent discount” on what the property was likely to fetch if sold on the open market.

Mr Pearce said while he did not dispute the need for crisis accommodation, selling land for the project at “less than half its value” was not “responsible custodianship” of a community asset.

“It’s a very expensive exercise in virtue signalling,” he said.

“Social housing is the direct responsibility of the federal and state governments, not council.”

Mr Pearce said the discounted price represented “a lot of footpaths, drains and other infrastructure that now will not be funded”.

A fairer way to help those in urgent need of housing would be for the council to “spot purchase” apartments in Knox and offer them on a peppercorn rent to those in need via a housing cooperative, he said.

“It would retain the asset for the community.”

A council spokesperson said council recognised the importance of social housing and developed a strategy to increase social housing in Knox to support community needs.

“Social and Affordable Housing Strategy (2023-2027) includes a plan to identify surplus land in locations with good access to public transport, community, retail and social services as potential sites for social housing,” the spokesperson said.

Meanwhile, one of the largest projects being delivered by the state government’s $5.3 billion Big Housing Build is currently underway in Wantirna South.

Jointly funded by Homes Victoria and Community Housing Limited, the project includes 117 modern, energy-efficient homes and an onsite office.

The new homes are expected to be ready in 2025 and will be available to eligible individuals and families on the Victorian Housing Register (VHR).

You can have your say on the proposed sale of 58-60 Station St, Bayswater here

“Council will consider all feedback before making a decision on the proposal at a future council meeting,” the spokesperson said.