Development Victoria is embarking on a pilot program to partner with experienced private developers to deliver much-needed housing for Melbourne while unlocking the potential of government-owned ‘small sites’.
The Small Sites Pilot Program aims to accelerate housing supply by transforming four surplus Government sites in Preston, Coburg, Alphington, and Malvern. The initiative is set to deliver in excess of 260 homes, including 10% affordable housing, in line with the Victorian Government’s Housing Statement.
In the latest step towards achieving this vision, Development Victoria invited Expressions of Interest (EOI) from developers to acquire the sites and develop innovative, sustainable and affordable housing solutions. Developers are encouraged to bid on one or more sites to unlock land for housing in established suburbs where people want to live and work.
Under the pilot, construction is set to commence on the four sites within 18 months of contract close. If the pilot is successful, the Government will explore other surplus sites in metropolitan and regional Victoria to help address housing challenges.
Alongside Development Victoria, the EOI process is supported by Advisory+, Cushman & Wakefield’s strategic real estate advisory experts, assisting to coordinate engagement with small and medium-sized developers and facilitate an efficient bidding and selection process.
Advisory+ Partner, Alan Herrman, said each site in the Small Sites Pilot Program is in a sought-after location. With the backing of the Victorian Government, there is a willingness to fast-track the development potential of the initial sites.
“It presents an opportunity for an experienced developer, or experienced developers, to advance an original concept and model for engagement, whether focused on high-density residential, mixed-use development, or community-focused housing,” Alan said.
Development Victoria’s Chief Development Officer Joanne Wandel said the pilot program is an exciting opportunity for developers to support our vision to deliver more homes for Victorians, as set out in the Victorian Government’s Housing Statement.
"This pilot aims to increase the supply of more diverse and affordable housing options in well established parts of Melbourne. This is a great opportunity for industry to be involved in a progressive housing initiative and lay out the foundations for how we can help more people live where they want,” Joanne said.
The opportunity for developers
The nature of Development Victoria’s Small Sites Pilot Program represents a new frontier in addressing housing supply issues and paves the way for more efficient development pathways for residential housing delivery.
The Small Sites Pilot Program will offer successful bidders the chance to acquire, fund and develop one or multiple of the four well-located, medium and higher-density development sites throughout inner Melbourne. Development Victoria is also proposing flexible commercial terms, including deferred settlement of the land, to provide incentives to deliver housing as soon as possible.
The profile of the pilot sites includes:
- 541 Sydney Road Coburg Located in the prime inner-city area, this site is ideal for high-density residential development. It offers excellent access to public transport, schools, and amenities.
- Former Rail Spur, Grange Road Alphington: Situated in a rapidly growing suburb, this site is perfect for mixed-use development, combining residential, commercial, and community spaces.
- 18a Miller Street Preston: This site is suitable for medium-density housing, with potential for innovative design solutions.
- 736 Torak Road Malvern: Positioned in a vibrant neighbourhood, this site offers opportunities for low-rise, housing developments.
Advisory+ Associate Director, Ari Kraemer said the EOI campaign, the first phase of a two-staged market process, has already received significant interest since opening on 30 July.
“The early interest highlights developers’ enthusiasm to advance development in inner-Melbourne locations and accelerate new and affordable housing for Victoria. The EOI process is already shaping up to be competitive and robust,” Ari said.
Advisory+ brings together diverse backgrounds in property, finance, economics, capital advisory, valuations and management consulting. With extensive experience working across public and private sectors and a deep understanding of the small to medium developer market, Advisory+ will be a trusted adviser to Development Victoria in an EOI and RFP process designed to optimise the mutual benefits for Development Victoria, developers, and the community.
Development Victoria’s EOI campaign is open until 3pm Tuesday, 27 August, with the aim of shortlisting selected bidders to progress to a targeted Request for Proposal (RFP) stage to be released later this year. Successful bidders are expected to be confirmed in early 2025 and design and construction to commence within 18 months of contractual close, subject to relevant planning approvals.
To learn more about the EOI process or to submit a bid, visit:
