Prahran Community Housing Redevelopment Proposal Faces Multiple Objections; State Plans Demolition of Seven Elderly Public Housing Towers

Prahran Community Housing: Six-Storey Proposal Draws Fire

A proposal to replace existing two-storey community housing on High Street near Orrong Road in Prahran with a six-storey building has drawn formal objections from the local council and concerns from residents and the local member of parliament.

A planning application has been submitted to demolish existing two-storey buildings and construct a six-storey building at a property on High Street near Orrong Road in Prahran. The proposed building would be 21 metres tall, exceeding the current area height restriction of 14.5 metres. The development is estimated to cost more than $26 million.

The property is owned by Housing First, a not-for-profit organisation that manages a $750 million community housing portfolio. The site has been used for decades as community housing for people aged 65 and over and currently contains 22 homes across multiple two-storey buildings.

Proposed changes:

• Increase from 22 homes to 50 homes
• Lower the age of entry for tenants from 65 to 55
• Include five car parking spaces, 20 bicycle spots, one elevator, and an internal courtyard
• Vehicle access via Florence Street, a one-way residential street at the rear of the property
• Residents would be ineligible for on-street parking permits under Stonnington Council rules
• Due to the height exceeding the current 14.5-metre restriction, the proposal requires permission from Planning Minister Sonya Kilkenny

Stonnington Council has formally objected to the application. Mayor Melina Sehr cited concerns about the number of car parks, landscaping, impact on neighbours, and the building's presentation along High Street.

Local residents Nadine Parkington, Kathleen Munson, and Hugh Hardy expressed support for expanding community housing but raised concerns about:

• The building's height and potential overshadowing of neighbouring properties
• Increased vehicle traffic on Florence Street
• The adequacy of five car parking spaces and one elevator for 50 apartments, particularly for older residents
• Hardy suggested reducing the building to four storeys

"The area needs more social housing but locals have been sidelined." — Prahran MP Rachel Westaway

Prahran MP Rachel Westaway stated the area needs more social housing but said locals have been sidelined. She described the proposal "in its current form" as not making sense due to limited parking and exceeding height limits. Westaway is sponsoring a parliamentary petition launched by a resident.

A former resident of the property who spoke anonymously said five car spots for older residents was "ridiculous" and questioned how one elevator could service six storeys.

A Housing First spokesperson stated:

• All design elements would be assessed against planning requirements and standards
• Comprehensive traffic and parking assessments have been carried out
• All necessary planning approvals will be obtained before any redevelopment proceeds
• The planning process allows for community submissions

Jonathan O'Brien, an organiser for the pro-housing-density advocacy group YIMBY, said the proposal appears compliant and accused Westaway of being "tone-deaf" for opposing it.

A Victorian government spokesperson said any proposal would be considered on its merits.

As of December 2025, more than 55,000 people had applied for public or community housing through the Victorian housing register. Victorian Council of Social Service chief executive Juanita Pope stated Victoria has the smallest proportion of social housing in Australia and called for a social housing growth target.

State Government Plans Demolition of Seven Elderly Public Housing Towers

Homes Victoria has identified seven additional public housing towers for demolition, affecting over 600 elderly residents.

Homes Victoria has identified seven additional public housing towers for demolition as part of the Victorian government's redevelopment plan. These towers are located across Melbourne's inner-south and west and house residents aged 55 or older. Relocation for residents is scheduled to begin in July, with an expected completion by February 2028.

Affected towers:

• 29 Crown St, Flemington
• 94 Ormond St, Kensington
• 159 Melrose St, North Melbourne
• 27 King St, Prahran
• 25 King St, Prahran
• 150 Inkerman St, St Kilda
• 150 Victoria Ave, Albert Park

These seven towers are part of the state's 13 facilities specifically designed for older persons under the Older Persons High Rise Program (OPHRP). Approximately 70 percent of residents in the affected towers are aged 65 or older.

Housing Minister Harriet Shing stated that replacing the high-rise towers is necessary due to their age, aiming to provide more suitable and affordable homes for Victorians. The Allan government announced a plan approximately two-and-a-half years ago to redevelop all 44 high-rise towers by 2051, with the project managed in stages.

The government's stated aim is to replace older public housing towers with modern, energy-efficient homes, increasing resident capacity from 10,000 to 30,000. The redeveloped sites are expected to feature a mix of housing tenures, including market-price rentals and homes managed by not-for-profit community housing providers. The new housing will be developed by consortiums that lease the land from the state for 40 years.

A specific timeline for the completion of the seven newly announced redevelopments has not been provided.

Fiona York, CEO of the Housing For the Aged Action Group (HAAG), stated that some residents, including those in their 80s and 90s, expressed surprise regarding the announcement. York voiced apprehension about the potential impact of relocations on frail residents and expressed concern that this action could signify the end of dedicated programs for older residents.

"We were initially told older persons' high-rises would be impacted later in the process." — Bill McKenzie, 73-year-old resident from Albert Park

Bill McKenzie, a 73-year-old resident from Albert Park, expressed concern regarding the expedited timeline. McKenzie emphasised the importance of offering nearby relocation options to maintain residents' access to medical support and family networks.

Raoul Wainwright, Acting CEO of the Victorian Public Tenants Association, highlighted the need for support for residents, particularly the elderly, to navigate the relocation process, noting the change is imposed rather than requested.

The Minister introduced the Hand in Hand Community Support Program, designed to connect relocated residents with those currently residing in the towers to provide assistance and reassurance during the transition.

Lawyers representing some high-rise residents indicated they will pursue legal action in the High Court to challenge the 30-year redevelopment initiative. The decision to proceed with the demolition of seven additional towers follows the Court of Appeal's dismissal of an appeal by residents of three towers in North Melbourne and Flemington. Inner Melbourne Community Legal plans to seek an injunction to prevent the eviction of remaining households until the High Court reviews the matter.

A parliamentary inquiry in December recommended halting the project, criticising the government for not releasing relevant documents. Minister Shing stated that the matter was found "reasonable and proportionate" by courts.

Research from RMIT University suggests alternative approaches, such as infill housing and tower refurbishment, could be more cost-effective, less disruptive, and offer environmental benefits. Professor Karien Dekker of RMIT proposed a "single-move" model where new accommodation is built on-site before existing towers are upgraded, allowing residents to remain in their community. Dekker stated this approach could be more beneficial for residents, reduce CO2 emissions, and be less costly for taxpayers. Minister Shing dismissed this suggestion, citing potential "billions of dollars" in costs and the prospect of residents living on a construction site for years.

Separately, HousingFirst is moving to sell 25 apartments at the Inkerman Oasis development in Greeves Street, St Kilda. These units were originally donated by Port Phillip Council over two decades ago for social housing. The sale would result in the relocation of elderly tenants, some of whom have lived in their units for over 20 years.

HousingFirst stated the units are financially unsustainable due to rising costs, including strata fees, maintenance, and council rates, which are not covered by the discounted rental income. Rents are capped at 30 percent of a tenant's income. HousingFirst stated that all proceeds from the sale would be reinvested into other housing within the City of Port Phillip.

Residents reported receiving relocation offers including other properties within Port Phillip or units in a new retirement village in Brighton East, which residents described as small and distant from their established community.

"This sale breaches the original ethos of the agreement." — Former Port Phillip mayor Dick Gross

Former Port Phillip mayor Dick Gross criticised the planned sale, stating it breaches the original ethos of the agreement. Current Port Phillip councillors Justin Halliday and Beti Jay, who serve on HousingFirst's board, were legally restricted from disclosing information about the impending sale before its public announcement and could not veto the decision.

Homes Victoria, a state agency, offered to support HousingFirst in assisting renters with finding new homes but did not indicate whether it would consider acquiring the properties.