Soil works complete at Abbotsford St site, but future development remains unclear

Residents living near the long-vacant Abbotsford St site in North Melbourne have been advised that recent site works have now wrapped up, though uncertainty remains about when the final stage of the project will proceed.

In January, locals received a works notice from Homes Victoria informing them that specialist contractors would be undertaking soil excavation and remediation works from January 19 until mid-February as part of stage two of the redevelopment.

The letter, issued under the state government’s “Big Housing Build” banner, outlined temporary traffic management measures and confirmed the works were in preparation for future development.

A Homes Victoria spokesperson has since confirmed that the remediation works have been completed.

Every Victorian deserves access to a safe and secure home, and the Victorian Government is using every lever to house as many people as quickly as possible, the spokesperson said.

“Homes Victoria, in partnership with MAB Corporation, completed the first stage of the Abbotsford St, North Melbourne housing site in 2024 as part of the Public Housing Renewal Program. This included the delivery of 127 social housing homes and 17 market townhouses.”

“In early 2026, specialist contractors completed soil remediation works on the site of the final stage to prepare it for the future development of market homes.”

The site, at the corner of Abbotsford and Molesworth streets, was cleared in 2018 following the demolition of ageing public housing walk-ups. While part of the broader renewal has been realised – including the Academy North Melbourne development and adjoining primary school – the remaining parcel has sat behind hoarding for several years.

North West City News understands that plans for the final stage, which previously included 151 market apartments approved by the Minister for Planning in 2021, remain in limbo amid challenging market conditions.

While community members have floated ideas for temporary activation, including the installation of a pop-up park or green space, the government says the land is not suitable for interim uses.

According to background provided by Homes Victoria, “while we understand community interest in seeing the site used in the interim, the site is not suitable for pop-up activations. We will keep the community informed about when development will start.”

That has done little to ease local frustration. One resident said neighbours were “heartily sick” of the site’s current presentation, describing the hoarding as “ugly” and questioning why a temporary park could not be installed if construction was not imminent.

Another community member noted that while the fencing is required for security, its continued presence reinforces the perception of stagnation in a precinct otherwise undergoing significant change.

The City of Melbourne placed the site on its monitoring list last year as part of a broader review of long-vacant or underutilised land parcels across the municipality. However, the council has previously indicated that the Residential Growth Zone does not compel temporary activation.

For now, with soil remediation complete, attention turns to what comes next – and when. While the government maintains that development will proceed in due course, residents are again left waiting for clarity on the final piece of a renewal project first announced nearly a decade ago. •