The inner-city site about to get 800 new homes

More than 800 new homes at the old Fitzroy Gasworks, long touted as a model for social and affordable housing, have been approved by the Allan government as it ramps up its attacks against progressive parties across the inner-city.

It comes as the state approved a contentious five-storey apartment building and supermarket in Glen Iris, after the development was rejected by the local council and by VCAT.

An artist’s rendering of the future Fitzroy Gasworks housing project.

Development Victoria Minister Colin Brooks will on Thursday announce a consortium has been picked to build 820 homes on the old gasworks site, including 168 affordable homes in line with its commitment to deliver 20 per cent affordable homes in the new neighbourhood.

Labor has previously promised to deliver 1200 homes in total at the inner-city location. Two lots, parcels B and C, are included in the announcement, but the first lot, parcel A, remains under consideration.

A joint venture known as Inner North Collective, made up of Assemble, Milieu and Hickory, has been selected to deliver the two stages, which makes up 70 per cent of homes planned across the precinct. It is also being backed by superannuation funds Australian Super and HESTA.

Assemble will construct 400 build-to-rent homes, 80 of which will be operated as community housing, while Milieu will build about 420 homes in partnership with Nightingale which will include specialist disability accommodation.

“More homes mean more opportunity – including in Fitzroy, where we’re transforming a vacant site into a school, sports centre and more than a thousand homes close to jobs, services, transport,” Brooks said.

The Allan government will also criticise the City of Yarra over the Bundha Sports Centre at the gasworks site, which they argue has had to wait longer to open because of the council.

The state will seek a new operator in 2025, but Collingwood Basketball Association and the City of Yarra Futsal Network will be able to use its courts.

On Wednesday, the government stepped in to approve a five storey-apartment and supermarket on Burke Road in Glen Iris after the developer reduced its height from six to five storeys and cancelled plans for a bottle shop.

A render of the Burke Road development, approved by Sonya Kilkenny after an earlier version was rejected at VCAT.

The original proposal received almost 200 community objections before Stonnington City Council voted against it in 2021. Developer Glen Iris Devco appealed the council’s decision but was knocked back again at VCAT in 2022.

The revised proposal cuts the number of apartments from 86 to 64 and includes six affordable housing units, qualifying it for fast-track approval under the government’s development-facilitation program.

The government can override council and VCAT decisions if a project is assessed to have social and economic benefit. The Allan government has vowed to build hundreds of thousands of new homes in the centre of 60 established suburbs across middle Melbourne.

The Burke Road development also includes a Woolworths supermarket on the ground floor, and a separate three-storey building on adjoining Hope Street.

“We’ll work with councils to make good decisions faster, but we can’t allow Liberal and Greens-led councils to block good quality and affordable homes close to public transport and services,” Planning Minister Sonya Kilkenny said.

Stonnington chief executive Dale Dickson said it was a poor planning decision.

“The council is of the view it is an overdevelopment that will place an unacceptable burden on local roads and infrastructure, impacting the amenity of residents now and into the future, including occupiers of the proposed new apartment complex,” Dickson said.

The council is in caretaker mode until the results of last week’s local government elections are declared.

Liberal MP for Malvern Michael O’Brien said the area was already congested with a medical centre next door to the development, as well as three schools in the area.

“It’s already a busy road and this will make life absolute hell for these people,” O’Brien said.
He also criticised Woolworths for pursuing the development despite strong community opposition.

“It stinks. It was rejected by council, rejected by VCAT. How often do residents win at VCAT? David finally beats Goliath and Goliath decides to bypass everything and go straight to the minister.”

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