Looking to the past to build for the future in Melbourne’s north
Posted on: 26/03/2026 - 9:15am
A new social housing project in Bundoora has entered an exciting new chapter with the completion of 10 new social housing homes – transforming a site with a long and significant history into modern and secure homes.
First built in 1939 at the outset of the Second World War, Larundel was established to replace the Kew Asylum. During the war, the site became a training complex for the Women’s Auxiliary Australian Airforce, where women played a vital role supporting Australia’s defence forces.
In the years following the war, amid a severe housing shortage, the site provided much needed housing for 109 homeless families. It also housed a school, supporting returned soldiers and newly arrived migrants establish new lives in Victoria – a theme of renewal that continues today.
By 1953 Larundel was re-established as a mental hospital for men and women until it was decommissioned in the late 1990s.
Today, nearly 90 years after it was first built, the site has been thoughtfully redeveloped to blend original character with contemporary design. The project includes 10 new townhouses, 5 of which retain heritage-listed brick exteriors that have been completely rebuilt internally to meet modern living standards.
The new homes are all-electric, with energy-efficient appliances designed to a silver Liveable Housing Australia level and a 6-star NatHERS rating. Homes also include a lock up garage, landscaped gardens or private balconies.
Managed by Common Equity Housing Limited (CEHL), these homes are designed to provide individuals and families with safe, secure, comfortable homes that are close to everyday essentials.
Residents will enjoy easy access to nearby shopping centres, childcare, medical services and parks – helping them stay connected to the community.
While the site has served many purposes over time, it once again stands for positive renewal – providing a new chapter for people who need it, much like it did generations ago.
What is social housing?
Social housing is long-term rental housing. These homes are for people who face challenges that make it difficult to secure safe and suitable housing in the private rental market.
Public housing and community housing are both types of social housing.
Community housing is managed by not-for-profit community housing organisations. Public housing is managed by the state government.
Renters who live in community housing have the same rights as public housing renters under the Residential Tenancies Act (1997).
More information
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