More and better homes: South Melbourne housing precinct takes its next big step

Posted on: 14/08/2025 - 9:00am

Community consultation is set to start on 131 modern, safe and energy efficient social dwellings for 182 – 196 Dorcas Street, South Melbourne as part of stage one works.  

The 3 older walk-up buildings, which contained 64 units, were demolished in 2024. The planning and design process to deliver the first stage of works will start with a visioning consultation with residents, the community and Port Phillip Council this month.

The development of the social homes at South Melbourne will be completed by June 2029, with early works due to start by 30 June 2026.

The social homes at South Melbourne are being jointly funded by the Victorian Government’s Big Housing Build and the Australian Government’s $10 billion Housing Australia Future Fund.

The stage one plans are the first step in a multi-stage redevelopment of the South Melbourne housing precinct.

The broader precinct will be master-planned in stages. Future development phases to be announced at a later date.  

What does this mean for residents?

Residents are at the heart of the process in Dorcas Street. Current residents do not need to move as part of Stage 1. These new homes will be built on vacant land.

We are committed to principled, meaningful and inclusive engagement with residents, stakeholders and communities to ensure the people who will live and use new homes and precincts can be involved in their development.

We have worked with residents to co-design Our Communities: Our Values – a set of values and principles - all of equal importance – to ensure residents and communities are at the centre of everything we do.

Resident input will help shape best-for-community and best-for-project outcomes.

We’ll work closely with the community to gather ideas and feedback on design and livability.

Relocated renters from the now demolished walk ups will have the right to return to new homes based on ongoing eligibility, needs, and the suitability of new homes.  

What will the new homes look like?

The features of the new homes are subject to consultation but they will be designed for community, comfort, and inclusion. 

Each home will include modern features similar to those already delivered as part of the Big Housing Build. 

There will be a mix of one-, 2-, 3- and 4-bedroom homes, including a minimum of 5% designed for people with disability 

Each apartment will have its own laundry, balcony, and air conditioner. 

The redevelopment will also deliver improved landscaping and shared community spaces.