Victoria Government Reverses Course, Will Demolish Rather Than Retrofit Former Kew VicRoads Building
The Victorian state government has made a last-minute decision to fully demolish the former VicRoads building in Kew rather than retrofit it for housing, with demolition beginning this week and expected to finish by mid-July. The 2.5-hectare Denmark Street site has been vacant for over two years and subject to development debate for more than a decade, with the government previously planning to convert the 1961 building into 125 homes as part of a broader 500-dwelling precinct. The reversal raises questions about the final scale and affordability mix of the redevelopment, as key details remain unconfirmed.
The Victorian government announced on Thursday that the seven-storey former VicRoads building in Kew will be completely demolished rather than retrofitted for residential use, marking a significant policy reversal from earlier plans. Demolition is set to begin this week and is expected to be completed by mid-July 2026. The government stated the decision followed extensive consultation with industry and would deliver more homes than originally planned, along with improved open space and precinct connectivity, though a spokesperson could not specify how many additional homes would be built or how tall any new development would be. The site, which spans 2.5 hectares on Denmark Street in the affluent suburb of Kew, had been earmarked for around 500 homes in total, with 125 slated for the now-condemned building. Kooyong MP Monique Ryan has called for a greater proportion of social and affordable housing beyond the government's stated minimum of 10 per cent, arguing that essential workers should be able to live near their workplaces. Boroondara Council has separately submitted a proposal to purchase a narrow strip of the site — known as the 'tail' — to convert into green space and a bike path. Nearby residents have been warned to expect noise, dust, vibration, and increased truck traffic during the demolition period.
What's missing
The government has not disclosed the specific reasons why retrofitting was deemed unviable after extensive industry consultation, nor has it provided a timeline or confirmed developer for the new precinct. The financial implications of demolition versus retrofit, and any cost to taxpayers, are also absent from the reporting.
What different sources said
- The AgeCenter
Kew VicRoads tower to be bulldozed this week after eleventh-hour U-turn
- Sydney Morning HeraldCenter
Kew VicRoads tower to be bulldozed this week after eleventh-hour U-turn
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