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Ground Lease Model

In a first-of-its-kind for Victoria, Homes Victoria is delivering new housing through an innovative and collaborative partnership model.

Homes Victoria is delivering new social, affordable and market rental homes at locations across the state through a Ground Lease Model, which is a first-of-its-kind for social housing in Victoria.

Under a Ground Lease Model, Homes Victoria leases land to a consortium to build, operate and maintain housing on the site for 40 years. The land, and all homes, is then returned to public ownership which means there is no sale of public land.

These projects are renewing ageing social housing sites by replacing older style dwellings with homes that are modern, energy efficient and designed to suit a range of households.

As part of an integrated housing model, there will be a mix of social, affordable, specialist disability* and market rental homes across the sites to provide greater diversity in Victoria’s rental stock.

The developments are designed to complement and strengthen connections within the local area with features for residents and the community to enjoy. This includes new outdoor spaces like parks and gardens, mixed use rooms such as cafes and co-working spaces, social enterprise opportunities and safe and accessible pathways throughout.

*Specialist disability accommodation is a type of affordable/market rental housing.


Frequently asked questions

This Ground Lease Model aims to grow social housing, tackle the growing problem of housing affordability and address the lack of secure, longer-term rentals in well-located areas. By partnering with a consortium, Homes Victoria can access State and Federal funding options not accessible via other housing delivery approaches. Without this approach these types of developments would not be possible at this scale.

The sites will deliver social, affordable, specialist disability and private rental homes that are welcoming and secure, and which meet modern design and accessibility standards. The sites will also deliver spaces to support diverse and inclusive communities. This includes community rooms, artists’ studios, social enterprise tenancies, active open spaces, community gardens and pocket parks.

Tenants previously relocated will be given the option to return once the development is complete. Many have been in alternative accommodation since site preparation works started. Homes Victoria will work each tenant to understand their individual circumstances and requirements and ensure an outcome that best suits their needs.

No, Homes Victoria will be able to renew and grow housing stock as the land and assets revert to public ownership and the end of the 40 years. There will be some private rental homes on the sites, but these will be managed by the consortium. Rental income from these properties will offset the cost of building social housing.

Homes Victoria’s Ground Lease Model projects

Ground Lease Model 1 project

Our first Ground Lease Model projects were complete in early 2024 and residents are settling into their new homes in Brighton, Flemington and Prahran. Find out more about our Ground Lease Model 1 projects here.

Ground Lease Model 2 projects

Following the success of Ground Lease Model 1, the program was extended to deliver new homes at Prahran, South Yarra, Hampton East and Port Melbourne

Planning is currently underway for these sites, find out more about our Ground Lease Model 2 projects below.