VicRoads staff will be moved on from their long-time headquarters in Kew after more than 60 years, freeing a large slice of valuable land that could be used to meet the state’s new housing targets.
In a memo to employees, the Department of Transport and Planning said VicRoads’ offices at Denmark Street in Kew were no longer fit for purpose and would be closed by early 2024, with staff relocated to other sites at Ringwood, Sunshine and Melbourne CBD.
VicRoads is leaving its long-time headquarters in Denmark Street, Kew.Credit: Penny Stephens
Most employees are expected to be relocated by November 27, while those remaining will receive more information towards the end of the year. The government says the future of the site has not been decided.
The 2.5ha block is close to popular shopping precinct, Kew Junction, and has been home to the state’s road authorities since 1961, when its first offices were opened for what was then called the Country Roads Board.
The future of the land has been a source of debate for more than a decade, with a feasibility study into its sale produced by the Brumby government in 2010.
Then-premier Denis Napthine reignited the debate in 2014, pledging to relocate the headquarters to Ballarat if re-elected.
Developers have kept an eye on the land because of its size, connection to transport and the inner city and the fact that properties in the affluent suburb are rarely available.
It has previously been speculated the property could be worth more than $100 million.
Last week, the Andrews government unveiled its housing statement targets of building 80,000 new homes a year over the next decade, supported by planning overhauls, repurposed CBD offices and the knockdown and rebuild of the state’s 44 public housing towers.
It also pledged to unlock “surplus” state land across 45 areas to create 9000 new homes, with a target that 10 per cent of these will be affordable.
Daniel Andrews released his landmark housing policy last week.Credit: Elke Meitzel
University of Melbourne associate professor of architecture Rory Hyde said Kew Junction was a major activity centre and the VicRoads site was a prime space for the state to utilise.
“So much of the cost of housing is in the land,” he said.
“Having that head start with state land, to really double down on creating affordable housing would be a huge benefit for the city and for the area.”
But Hyde said a requirement of 10 per cent affordable housing was not enough.
University of Melbourne associate professor Rory Hyde has called for a greater proportion of affordable housing.Credit: Joe Armao
“In the United Kingdom, where I’ve worked, government land has a minimum 50 per cent affordable in what they mandate,” he said.
“This would be a place where you could set an example of what a good development looks like. That inclusive design for everyone, what is best for the city approach.
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“We shouldn’t just sell it to the highest bidder. We should run a process that seeks out the best use.
“That would be, I think, a great place to do all of that affordable housing that they’ve been talking about so much.”
Hyde said authorities should also investigate repurposing VicRoads’ decades-old office towers into homes, rather than tearing them down.
He said outside of housing, the block could be turned into a new neighbourhood or mini-city with cultural venues, education facilities, shops and other additions.
A 2011 planning document from Boroondara council said the site presented “opportunities for future development, should VicRoads relocate in the future”.
Options canvassed at the time included retaining the office towers or, if they were to be removed, filling the middle of the land with buildings up to five storeys.
Kew MP Jess Wilson wants the local community to be consulted before any decisions are made.Credit: Eamon Gallagher
Kew MP and opposition housing affordability spokeswoman, Jess Wilson, said the site was a significant piece of land and the state government was strapped for cash.
“Given this, the Andrews government needs to be upfront about its plans for the site, if it intends to sell the land, and consult with the local community before any decisions are made.”
A Department of Transport and Planning spokeswoman said the move would not reduce its operations.
“Following a review of our workplaces to better align the department’s functions and support new ways of working, staff based in Kew will relocate to offices in Ringwood and the CBD,” she said.
The government says no decision has been made about the site. Credit: Penny Stephens
In 2019, almost all of VicRoads’ functions were absorbed into the transport department, despite the name and branding remaining at most centres, and in 2022, the licenses and registration were partly privatised under a 40-year license – generating $7.9 billion for the budget.
The network operations team, which oversees the state’s traffic system at all hours, moved to Ringwood in 2022.