Council puts spotlight on long-vacant Abbotsford St site as crackdown expands north

The City of Melbourne has turned its attention to a long-vacant plot on Abbotsford St in North Melbourne, adding the site to a growing list of underutilised or derelict land parcels being actively monitored as part of a new crackdown on neglected properties across the municipality.

The corner site bounded by Abbotsford and Molesworth streets – once part of North Melbourne’s historic public housing estate – is currently the only property in the suburb included on the council’s “priority sites” list, as officers ramp up efforts to compel progress on stalled or abandoned developments.

The move comes after councillors unanimously backed a September motion by Lord Mayor Nick Reece calling for stronger enforcement powers to address vacant, unsafe or unsightly sites, including potential new penalties and differential rates. While the initiative has so far centred on prominent Southbank and CBD addresses, the 366-422 Abbotsford St site’s inclusion signals the City’s broadening focus.

Once home to 1950s-built public housing walk-ups, the site was cleared in 2018 under the state government’s Public Housing Renewal Program. It was earmarked for a large mixed-tenure redevelopment led by Homes Victoria and developer MAB Corporation, with new community and private housing designed to help fund the project.

Part of the estate has since been transformed into Academy North Melbourne – a joint venture with HousingFirst that delivered 127 new social housing homes alongside the new North Melbourne Primary School campus. But the remaining parcel at the corner of Abbotsford and Molesworth streets remains fenced off and overgrown.

A planning permit for the site was issued by the Minister for Planning in 2021 and amended earlier this year to allow for staged development.

The planning permit approved in 2021 also included approval for 151 market apartments on the vacant land near Molesworth St.

According to a City of Melbourne spokesperson, the site sits within a Residential Growth Zone – Schedule 2, which “does not require temporary works or activations”. The spokesperson said it had been placed on the council’s monitoring list as a matter of process to help officers respond quickly to resident enquiries.

However, for locals who’ve watched the block sit idle for more than six years, patience is wearing thin.

It was meant to be the final piece in a major renewal project, but it’s just been left as a mess,” one long-time resident told North West City News. “The old homes were demolished years ago, people were moved out, and now it’s just grass and rubbish.

“Everyone expected those private apartments to be built to fund the rest of the project, but they didn’t sell off the plan and everything stalled. It’s been stuck ever since.”

The resident said the Abbotsford St frontage was originally planned as private apartments whose proceeds would help cover costs for the community housing elsewhere on the site.

“Only two people put down deposits, and when sales fell through, they refunded them and started redesigning,” the resident said. “That was years ago and there’s been no sign of progress since.”

The council confirmed it had received numerous enquiries from residents about the site’s future, and while some have proposed temporary activation – such as converting the land into green space or play areas for the adjoining primary school – the City said its zoning “does not compel or require” such measures.

A City of Melbourne report from 2017, prepared ahead of the site’s rezoning, had urged the state government to deliver an “exemplary” redevelopment that integrated new housing, community facilities and open space while retaining North Melbourne’s heritage character.

The council at the time raised concerns about excessive building heights and poor urban design outcomes, recommending that future planning controls ensure high-quality landscaping, deep soil planting, and community access to open space.

Today, the vacant corner stands in stark contrast to the bustling new school next door and the completed apartments and townhouses further down Haines St.

Homes Victoria, which still owns the land, says that it is working through future plans for the site with MAB Corporation.

"The Abbotsford St site in North Melbourne is being redeveloped with MAB Corporation to deliver a mix of social and market homes," a Homes Victoria spokesperson said.

It added that challenging market conditions, including rising construction costs and higher interest rates, had affected the viability of this part of the project.

Meanwhile, the City of Melbourne is pressing ahead with a wider review of laws governing derelict and vacant sites, with officers due to report back to councillors by November 30. The review will consider enhanced enforcement powers, cost recovery mechanisms, and incentives for property owners to activate land awaiting redevelopment.

While City of Melbourne management stresses that the Abbotsford St site’s inclusion on the list is administrative rather than punitive, its presence underscores the council’s growing determination to prevent long-term neglect of prominent parcels.  •