Boroondara council rebukes plan for up to 16 storeys at former Kew VicRoads site

State government masterplan for 630 homes at 60 Denmark Street criticised over heights, affordable housing and parking

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The state government's plan to replace the former VicRoads headquarters in Kew with up to 630 homes in towers as tall as 16 storeys has drawn a sharp rebuke from Boroondara council, which says the proposal lacks enough affordable housing, a robust traffic plan and a clear rationale for its height.

The former VicRoads headquarters at 60 Denmark Street in Kew, under demolition this month, would make way for nine buildings under a state government masterplan. Two towers would rise 16 storeys, with the remainder between 10 and 14 storeys.

The 2.5-hectare block, close to the Kew Junction shopping precinct, has been sought after by developers for more than a decade because of its size, transport connections and affluent location. The land falls within the Victorian government's activity centre regime, under which relaxed planning laws aim to boost housing development and lower prices.

In a report prepared for Monday night's council committee meeting, Boroondara council officers criticised the plan for providing no more than the 10 per cent minimum affordable housing, for lacking social housing, and for failing to justify the building heights. Council had preferred buildings of between three and eight storeys.

"Instead, the proposed master plan provides for approximately 630 dwellings, compared with the earlier indication of around 500 dwellings ... and buildings of up to 16 storeys (52.5 metres)," the report said. "The rationale for this increase in height and yield, and the corresponding public benefit, has not been demonstrated in supporting documentation, or captured in the masterplan itself."

Officers also labelled as "inferior" plans for some of the proposed 579 car spaces to sit above ground, saying parking should instead be in basements. They pushed for more commercial space beyond "small-scale" retail, given the site sits in a designated activity centre, and argued the council, rather than Planning Minister Sonya Kilkenny, should have the final say.

"Given the site's former public ownership and strategic importance, officers consider it essential that the redevelopment delivers enduring public benefit," acting urban planning manager Jock Farrow wrote. "The Boroondara City Council remains the most appropriate authority for this responsibility, not the minister for planning."

Development Victoria, the government agency behind the masterplan, said it sought to balance housing, urban design, sustainability and connectivity, and that the plan was intended only as a guide, not a prescription for developers. It includes a pocket park, a light-filled plaza and a network of paths prioritising cycling and walking, with about 500 bike spaces.

"The former VicRoads site in Kew is being transformed into a vibrant new residential community with much-needed homes, close to jobs, transport, schools and green spaces," a Development Victoria spokesman said. Four private developers have been invited to submit detailed proposals after a two-stage market process in early 2025, with successful partners expected to be announced in 2027.

An earlier plan for about 500 homes, including 125 retrofitted into the VicRoads tower, was ditched earlier this year in favour of full demolition. The offices were decommissioned in 2024 and staff relocated to Ringwood, Sunshine and the Melbourne CBD. The site hosted the state's road authorities from 1961, when it opened for what was then the Country Roads Board.

Mayor Wes Gault said council was "supportive of additional housing" adjacent to the Kew Junction activity centre and that officers had been working with Development Victoria, while the council continues to push for ownership of a "tail" section of the site for green space and a shared path. Officers backed the masterplan's new north-south and east-west pathways as "pivotal". Federal independent MP Monique Ryan, whose Kooyong electorate includes Kew, has called for the site to include a significant allotment of social and affordable housing.

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Analysis

Why This Matters

  • Planning Minister Sonya Kilkenny, not the council, would have the final say on the masterplan, and the outcome will test how much room local communities have to shape state-driven housing projects.
  • The site is one of the first major tests of Victoria's activity centre regime, which relaxes planning controls to deliver more homes, against local concerns about height, amenity and public benefit.
  • The block is state-owned and has been debated for more than a decade, making this redevelopment a likely benchmark for similar sites across Melbourne.

Background

The former VicRoads site at 60 Denmark Street has been a development flashpoint for more than a decade. Earlier this year the state abandoned a plan for about 500 homes, including 125 retrofitted into the old tower, choosing instead to demolish the building entirely to fit more dwellings. The land now falls under Victoria's activity centre program, a broader state push to concentrate housing around shopping and transport hubs, with planning decisions increasingly made at ministerial level rather than by councils. The VicRoads offices were decommissioned in 2024, ending more than 60 years of road authority use of the site.

Key Perspectives

Boroondara Council: Wants a more modest development of three to eight storeys, affordable and social housing beyond the 10 per cent minimum, basement parking, more commercial space, and final control of the site rather than the minister. Development Victoria: Argues the masterplan balances housing, urban design, sustainability and connectivity, delivers much-needed homes close to jobs and transport, and serves only as a guide, with four developers to prepare detailed proposals. Critics and local voices: Federal independent MP Monique Ryan has called for a significant allotment of social and affordable housing on the site, reflecting concern that state-owned land should deliver an enduring public benefit.

What to Watch

  • The outcome of Monday night's council committee meeting and any formal submission to the state government.
  • Whether Development Victoria adjusts building heights, dwelling yield, parking or affordable housing provisions in response to council feedback.
  • The selection of development partners, expected in 2027, which will reveal the scale and design of what is ultimately built.

Sources

Checked

12 claims in this story checked against 1 source: 10 supported.

Show each claim
  1. SupportedBoroondara council rebuked the state government plan for up to 16 storeys at the former Kew VicRoads siteSydney Morning Herald - Latest News: “a contentious plan by the state government that has been rebuked by the local council”
  2. SupportedThe masterplan would bring up to 630 homes in towers as tall as 16 storeysSydney Morning Herald - Latest News: “up to 630 homes in towers as tall as 16 storeys”
  3. SupportedCouncil says the plan lacks enough affordable housing, a robust traffic plan and a clear rationale for its height; it provides no more than the 10 per cent minimum affordable housingSydney Morning Herald - Latest News: “lacking more affordable housing beyond the 10 per cent minimum, and lacking social housing, a robust traffic plan and a clear rationale for the heights of the buildings”
  4. SupportedCouncil officers quoted: the plan provides approximately 630 dwellings, up from around 500, with buildings of up to 16 storeys (52.5 metres)Sydney Morning Herald - Latest News: ““Instead, the proposed master plan provides for approximately 630 dwellings, compared with the earlier indication of around 500 dwellings ... and buildings of up to 16 storeys (52.5 metres),””
  5. SupportedOfficers labelled as 'inferior' the plans for some of the proposed 579 car spaces to sit above groundSydney Morning Herald - Latest News: “labelled as “inferior” plans for some of the proposed 579 car spaces to be above ground”
  6. Partly supportedMonique Ryan has called for the site to include a significant allotment of social and affordable housingSydney Morning Herald - Latest News: “is among those who have called for the former VicRoads site to include a significant allotment of social and affordable housing”
  7. SupportedCouncil argued it, rather than Planning Minister Sonya Kilkenny, should have the final say on the siteSydney Morning Herald - Latest News: “said the council should retain control of the site instead of Planning Minister Sonya Kilkenny”
  8. Partly supportedThe activity centre regime is one under which relaxed planning laws aim to boost housing development and lower pricesSydney Morning Herald - Latest News: “under which relaxed planning laws can boost housing development and lower prices”
  9. SupportedFour private developers have been invited to submit detailed proposals, with successful partners expected to be announced in 2027Sydney Morning Herald - Latest News: “four private developers have been invited to submit detailed proposals, with successful partners expected to be announced in 2027”
  10. SupportedAn earlier plan for about 500 homes, including 125 retrofitted into the VicRoads tower, was ditched earlier this year in favour of full demolitionSydney Morning Herald - Latest News: “That plan was ditched earlier this year at the eleventh hour, and the state government instead has opted to entirely demolish the former municipal building”
  11. SupportedMayor Wes Gault said council is 'supportive of additional housing' adjacent to the Kew Junction activity centreSydney Morning Herald - Latest News: ““Council is supportive of additional housing being provided on the site adjacent to the Kew Junction activity centre,” Gault said.”
  12. SupportedDevelopment Victoria says the masterplan is a guide only and does not prescribe what developers buildSydney Morning Herald - Latest News: “The plan wasn’t intended to prescribe the specifics of what developers ultimately built there, and only act as a guide.”

Zotpaper

Written by June Katz on the Australia & local desk. Claims checked by Ines Fairley, verification. Edited by Angus Burke, chief sub.

1 source10 of 12 claims matched to a sourcefirst published 19 Oct, 12:50 pm
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