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Warning tower demolitions could prolong waitlists
15 July 2025

Homelessness in Victoria could be exacerbated by the state’s program of public housing renewal, a public inquiry has heard.
The Legislative Council Legal and Social Issues Committee heard the evidence during a hearing held at the public housing towers in South Yarra in early July.
The Committee heard from the Southern Homelessness Services Network, Port Phillip and Stonnington Zero and Southside Justice, as well as residents and local council representatives at the public hearing.
The inquiry is examining the Victorian Government's 2023 decision to demolish and redevelop 44 high-rise public housing buildings in Melbourne.
The homelessness organisations expressed concerns that the program would effectively ‘tie up all the resources for the next 30 years in building public housing’.
Ruth Gordan, Coordinator of the Southern Homelessness Services Network, told the hearing that the ‘redevelopment is unlikely to improve access for people experiencing homelessness to housing’.
‘Firstly, we are greatly concerned about the impact of relocating tower residents on the already stressed social housing waiting lists, with clients of our services having to wait even longer for the housing they desperately need,’ she said.
She said that the program to demolish and replace the 44 public housing towers favoured those already in public housing but did not address the needs of those on the waiting list, known as the Victorian Housing Register (VHR).
'As residents affected by the redevelopment receive priority for vacancies, those waiting on the VHR will have to wait even longer in dire circumstances to access housing,’ she said.
George Hatvani, of Launch Housing said there had been an increase in the number of people sleeping rough over the past two years as well as fewer places in public housing being made available to them.
'What we are seeing is the slowdown in offers as well, and our concern is that the offers are because people have been starting to be relocated and are soaking up the spare capacity,’ he said.
'We are trying to end homelessness, but there are no exits. Our fear is that there will be no access to public housing in the foreseeable future, with the six- to eight-year redevelopment times, and that is going to have a significant impact,’ he said.
He added that there was a mismatch between the housing being developed and the needs of people experiencing homelessness, who typically require single person accommodation.
'They need one-bedroom properties. That is not what the profile is at the moment. That is what the gap is across the board. We also know that 20 to 30 per cent of the people on our by-name lists have significant complex needs because of their long experience of homelessness – co-occurring mental health, drug and alcohol issues, physical disability. They need supportive housing,’ he said.
The Committee will explore the rationale and cost of demolition versus alternatives such as refurbishment, the impact on public housing residents, and the relocation of residents.
It will also assess the adequacy of consultations with residents, stakeholders, and government entities, and evaluate the proposed financial and legal models. The Committee will review building standards, the integration of different housing models, and the impact of the plan on bedroom availability, public and community housing numbers, the Victorian Housing Register, and on homelessness.
Go to the Committee’s website for the full terms of reference, to sign up to email alerts or to download any of the more than 800 submissions to the inquiry.
The Committee expects to table its report by December 2025.
A range of people shared their views at the housing towers redevelopment hearing in South Yarra.