Yarra City Council will begin community consultation next week on a proposal to lease or sell Council-owned land adjacent to Collingwood Town Hall for a major affordable housing development.
City of Yarra Mayor, Cr Stephen Jolly said that making the land available at a nominal cost could enable an affordable housing provider to deliver below-market rents for key workers.
"Yarra is driven by a young workforce in health, hospitality and the creative industries," said Mayor Jolly. "But we're closely reaching the point—if we haven't already—where people who want to live close to where they work, can't afford to. We're not talking can't afford to buy but can't afford to rent!"
The proposal is for a 2,000m² parcel of land, currently used for car parking, a storage shed and garden beds within the Collingwood Town Hall precinct—bounded by Gipps, Hoddle and Vere Streets, and the railway line.
A future affordable housing development on the site will aim to incorporate:
Housing reserved for key workers employed in face-to-face roles within the City of Yarra.
Rental-only dwellings, not home-ownership.
Eligibility for low to moderate income households, including those up to 20% above income thresholds set under the Planning and Environment Act.
Rents capped at 74.9% of market rent, ensuring a meaningful discount.
No capital or ongoing Council funding, with Council's contribution limited to the land.
At least 50 affordable dwellings delivered on the site.
A maximum building height of 25 metres (approximately eight storeys).
Pedestrian links to Eddy Court Reserve, the Djerring Centre and Collingwood Town Hall.
Removal of the existing storage shed to create a workable development footprint.
"We believe this approach strikes a balance between ensuring community benefit and allowing the development sector the flexibility needed to deliver financially viable affordable housing," said Mayor Jolly.
The proposal follows discussions with State and Federal governments about delivering social and affordable housing on the site. State or Federal grant funding would be necessary to make the project financially viable.
There is flexibility for limited on-site parking and for up to 20% of dwellings to be market-rate only if necessary for project feasibility. No community infrastructure is required as part of the project, though developers may choose to activate the ground floor.
Consultation to begin 17 November
Consultation on the proposal will run from Monday 17 November to 9am on Monday 15 December 2025, in line with section 114 and 115 of the Local Government Act with a decision on the future of the land expected in the first half of 2026.
